|
| Securities Analysts: Stock Market Unaffected by Political Uncertainty |
| UPDATE : 17 March 2010 |
The Securities Analysts Association, or SAA, believes that investor confidence in the Thai stock market has not been affected by the ongoing Red Shirt rally.
SAA will conduct another survey to gauge the opinion of stockbrokers regarding how different political scenarios will affect listed companies.
Trade volume in the Thai stock market has unexpectedly risen, despite the ongoing Red Shirt rally. Securities Analysts Association Secretary-General, Sombat Narawutthichai believes investors have seen the ongoing rally by supporters of the Democratic Alliance Against Dictatorship as peaceful so far.
He predicted that the Thai stock market's composite index will move within the range of 725 to 750 points.
He agrees with a prediction that Thai GDP will grow less than 3% this year if the rally turns violent or goes on for 7 to 10 days.
The SAA Secretary-General revealed that surveys regarding the impact of different hypothetical political scenarios have been sent to securities companies for their thorough assessment. The information gathered will be announced at some point during next week.
Thai Polycons Managing Director, Charoen Chanpalangsri said that confidence in his company remains intact despite the ongoing rally.
Charoen said he is more concerned about the continuity of government policies and, in particular, its handling of the Map Ta Phut industrial estate dispute.
Charoen expects that his company will see a 10-20% growth in revenue this year due to its winning construction contracts for projects in the public and private sectors, notably a 9.5-megawatt biomass power plant worth 700 million baht.
He stated that foreign investors are following new developments in Thai politics and the Map Ta Phut problems closely.
If all of the problems are resolved, he is confident investments will continue to flow into Thailand, contributing a GDP growth of more than 3%.
|
|
|
| |
|
|
|
|
|
