Politics outweigh economic factors in influencing market, says stock analysts

BANGKOK, 1 March 2010 (NNT) – Political cause has become the top factor in influencing the stock exchange, according to stock analysts.

Secretary General of Securities Analysts Association, Mr Sombat Narawutthichai, said the political movement after the verdict on the ex-PM Thanksin Shinawatra’s asset seizure case had been delivered had totally outweighed the economic factor in manipulating the domestic stock activity. The analysts give 70% on the political concern and only 30% on the global economy.

The analysts said that recent bombing incidents following the verdict and the upcoming rallies of the anti-government demonstrators in mid March had catalyzed the political heat. They expected the stock market two weeks before the gathering to fluctuate in a downtrend within 700-725 points. It is likely to plunge to 670 points if the index passes through the 700 points support line.

Mr Sombat predicted that tomorrow’s market value would continue to drop slightly. Investors are still indecisive about the political unsettlement. The association would revise this year’s stock target in accordance to both negative and positive factors influential to investment condition.

According to the latest survey conducted in December 2009, the analysts forecast the index to stand at 812 points at the end of 2010 with the maximum of 845 and the minimum of 625 points.