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Investors Positive On Court Ruling


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Investors positive on Court ruling

By Siriporn Chanjindamanee

The Nation

BANGKOK: -- The stock market yesterday rose a slight 0.6 per cent to close at 721.37 points, reflecting positive market sentiment regarding the court ruling on ousted prime minister Thaksin Shinawatra's Bt76-billion frozen-assets case.

"The rise in the Stock exchange of Thailand Index reflected investors' confidence there would be no violence," said Thanachart Securities executive vice president Pichai Lertsupongkit.

The SET Index yesterday traded between 714.89 and 723.63 points with volume of Bt19.7 billion, led by the energy, banking and petrochemical sectors.

Tisco Securities reiterated in a recent report on market sentiment that a clearer picture on the political situation would emerge next week.

"Good news would be a time to sell and bad news a time to buy," Tisco Securities said, adding that "good news" meant a partial seizure of Thaksin's assets and "bad news" a total seizure.

If it is "good news", the SET Index will climb to test the resistance level at 732 points, which would be a good time to sell.

On the other hand, the "bad news" scenario could cause the SET Index to test the lowest point at 665, which would be a good time to buy, Tisco said.

The SET outperformed other regional markets, driven mainly by this week's clearance from the Central Administrative Court for seven more suspended projects to complete construction of their factories and machine tests, following their petitions.

Five are Siam City Cement Group projects, while the other two belong to the PTT Group.

Pichai said foreign investors remained net buyers this year atBt7.4 billion.

He predicts the SET Index will rebound this year, led by the banking and property sectors.

Even if there is political upheaval, the stock market still has low risks, buoyed by strong economic fundamentals.

Meanwhile, Arparporn Sawaengpak, assistant manager for research at DBS Securities, suggested investors hold a 60-per-cent stake in long-term investments and the rest in cash for their portfolio. The cash could be used for accumulating fundamentally sound stocks.

Advanced Info Service closed at Bt88 yesterday, up 0.28 per cent, while its holding company, Shin Corp, remained unchanged at Bt29.

An analyst at Kim Eng Securities (Thailand) had a different point of view and said yesterday's upward movement in the SET Index was in line with other stock markets in the region.

Next week, the SET Index will likely move to between 730 and 750 points, while foreign investors are expected to be net buyers, the analyst said.

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-- The Nation 2010-02-27

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