Thai bourse may continue depressing next week

BANGKOK: -- Last Tuesday's major global equities selloff may continue to negatively impact the Stock Exchange of Thailand (SET) next week, as investors await the release of Thailand's gross domestic product (GDP) figures and a cabinet reshuffle after the abrupt resignation of Pridiyathorn Devakula, deputy prime minister and finance minister, the Kasikorn Research Centre reported.

On Friday, the SET composite index closed at 679.02 point, down about 1.7 per cent from a week ago, while this week's daily turnover rose approximately to Bt12.7 billion from Bt8.5 billion last week.

This week's SET decline was also attributed to the first net sale by foreign investors in the past seven weeks amounting to Bt638 million and by retail investors at Bt237 million.

The aftermath of the global equities selloff on worries over measures to contain stock speculation in the Chinese stock market and the US economy may continue to haunt to SET next week, the report said.

It said investors in the Thai market were also awaiting a Cabinet reshuffle, especially news regarding the new finance minister appointed to replace Pridiyathorn who resigned from his post on Thursday (March 1), and the release of GDP figures for the fourth quarter of 2006 by the government's National Economic and Social Development Board.

The Kasikorn Research Centre forecast that GDP for the last quarter of 2006 would be at 4.3 per cent while for 2006 overall it would be at 5 per cent, reflecting poorer performance at year end.

The Centre said it believed that global stock markets would continue to slip next week, forcing the SET to decline as well.

Support level for the SET next week is about 677 points while the resistance level is at 685, it said.

--TNA 2007-03-04

good news that monday is still a day off

"Support level for the SET next week is about 677 points while the resistance level is at 685, it said. The Centre said it believed that global stock markets would continue to slip next week, forcing the SET to decline as well."

Thai researchers no any better then the weatherman back at home.