Egypt violence still influences SET index

BANGKOK, 1 February 2011 (NNT) – The Stock Exchange of Thailand (SET) index is hoped to rebound today after a drawdown on Monday due to investors’ concerns over the ongoing violent demonstrations and riots in Egypt.

Kim Eng Securities Senior Analyst Mayuree Chowikran expected that the Thai stock market on Tuesday should rebound in line with foreign markets; however, there might be some fluctuations since investors are still monitoring the riot situation in Egypt.

The analyst believed that the trade today would not be lively since the Chinese New Year festival is approaching, and some investors might slow down their investments. She then anticipated that the SET index would move around 960 to 970 points.

The Stock Exchange of Thailand (SET) index on Monday closed at 964.10 points, down 17.73 points in trade worth 21.292 billion baht.

Bank of Thailand Monetary Policy Group Director Mathee Supapongse confirmed that the riot in Egypt would not affect the Thai economy directly; however, he admitted that it would cause some psychological impacts with investors as they might lose their confidence with the economy.

Mr Mathee expected that the situation might cause energy price volatility; however, he viewed that the riot in Egypt would neither cause widespread impact nor escalate to become war since the situation remains domestic one.