July 10, 2009
BANGKOK (AFP) - The Thai stock market is likely to move next week in line with the global oil price after recent falls, analysts said Friday.
The Stock Exchange of Thailand (SET) fell 17.45 points or 2.99 percent over the three-day trading week to close Friday at 566.03.
The average daily trading value tumbled 32.52 percent from last week to 14.8 billion baht (437 million dollars).
"The index will depend on the oil price. If (it) stabilises at 55 dollars per barrel I think it will stop the sell off in PTT or PTTEP shares," said Sukit Udomsirikul of Siam City Securities.
PTT is Thailand's top energy firm and PTT Exploration and Production is its subsidiary. The oil price is currently at around 60 dollars per barrel.
Sukit predicted the index could fluctuate between 550 and 580-points next week.
He said investors were beginning to fear the effects of the spread of swine flu in Thailand after it reported the 14th death from A(H1N1) with more than 3,000 confirmed cases of the virus.
"It's not causing immediate panic but there is increasing concern that it could directly affect the entertainment and tourism sectors if the outbreak worsens," he said.
Another analyst, Rakpong Chaisuparakul of KGI Securities (Thailand), said the Monetary Policy Committee was expected to hold interest rates at 1.25 percent in its meeting on Wednesday.
