Thai Stock Market, Baht To Remain Depressed Next Week

[george]

Thai stock market, baht to remain depressed next week

BANGKOK: -- Lingering worries over rumours of a countercoup against the interim government of Prime Minister Surayud Chulanont and the bombings here on New Year's Eve are expected to continue to depress the Thai stock market and the baht next week, according to a report issued by the Kasikorn Research Centre.

The Stock Exchange of Thailand (SET) composite index tumbled 51.65 points, or 7.6 per cent, as the market resumed trading on Wednesday through Friday, with investors unloading stocks on worries about rumours of a possible coup which spread in the country since Thursday and the bombings in the capital last Sunday.

The bombings left three persons killed and 42 others wounded, including nine foreigners. To date, no suspects have been apprehended.

Another negative factor impacting the bourse is the strict 30 per cent capital reserve requirement imposed by the Bank of Thailand on December 19, said the report, adding that foreign investors this week continued to sell blue-chip stocks.

Investors are monitoring local politics and whether perpetrators behind the bombing would be arrested before investing on the stock market next week, it said. The market is anticipated to be depressed.

Regarding the Thai currency, the baht moved around Bt35.97 against the dollar late Friday compared to Bt36.02 per dollar a week ago as most traders stood on the sidelines, the report said.

Local commercial banks will have to maintain their compulsory fortnight reserve requirement next week, it said. Short-term interest rate is expected to move steadily and the baht is projected to move around Bt35.80 - 36.30 against the dollar as traders continue to watch Thai political developments closely.

--TNA 2007-01-06

[brazil]

What a mess!!!!

the stock market should start to pick up towards the end of this month, with the 4 quarter results of all listed companies, and with some luck the bot will reduce the dose on the capital in flows from late jan.

[kurgen]

Thai stock market, baht to remain depressed next week

Try Prozak