Huge sell-off in Thai stocks expected next week

BANGKOK, 29 May 2010 (NNT) — The Thai stock market is expected to experience massive sell-off next week if the domestic and global factors move in a positive direction, according to experts.

Experts from Kasikorn Securities and Kasikorn Research Center forecasted that a large volume of profit taking in Thai stocks would be seen next week. They indicated that the domestic factors to be monitored included the outcome of the censure debate from 31 May-1 June 2010, reports on economic figures and inflation by the Bank of Thailand and the Commerce Ministry, and the meeting of the Monetary Policy Committee.

The foreign factors to be aware of are the Euro zone’s debt crisis, the rising tension on the Korean Peninsula, the Chinese Yuan currency, directions of global oil prices and stocks, and economic reports from the US.

The Thai stock index next week is speculated to move within a support line of 720-712 points and a resistance line of 750-780 points.