Rising Thai economy linked with global recovery, says SET chief

BANGKOK, Aug 11 (TNA) – The Thai economy has shown signs of improvement in tandem with the recovery of the global and United States economies with the gross domestic product (GDP) expected to resume a small growth in the fourth quarter of this year, according to the Stock Exchange of Thailand (SET) chairman Pakorn Malakul Na Ayudhya.

However, there remain key negative factors to Thailand’s economic recovery, including political divisiveness and concerns at the stability of a shaky government.

During the overseas road shows, he said, foreign investors still question political uncertainty in Thailand. It is considered a weakness when compared with neighbouring countries such as Indonesia, Singapore and the Philippines where political divisiveness is not the case.

Rising oil prices are another negative factor that should be monitored because it is expected the global fuel prices would climb to surpass US$70 per barrel.

The oil price hike stemmed from higher market demand as a result of the global economic recovery. It would fuel production costs of listed companies.

To maintain the production efficiency, he said, the listed firms needed to find ways to manage the costs.

Mr Pakorn forecast the daily trading volume in the Stock Exchange of Thailand (SET) would increase from an average of Bt8 billion to Bt16-17 billion because foreign investors and institutional investors had increased their trade on the market. (TNA)