Thai bourse index likely to rally to 812 late next year: survey

BANGKOK, Dec 25 (TNA) – The Stock Exchange of Thailand’s composite index is likely to climb up to 812 points late next year against 764 points expected earlier because the investor confidence begins to improve upon an implementation of the Thai Khem Keng (Strong Thailand) scheme, according to an opinion survey.

Sombat Naravuthichai, secretary-general of the Securities Analysts Association, said various projects implemented under the scheme are expected to help stimulate local consumption and investment.

Under the circumstances, it is believed the economy would contract only 3.2 per cent this year against 3.4 per cent forecast in September.

Most securities analysts believed the economy next year would expand 3.5 per cent against 3.2 per cent expected previously. They are more optimistic about the economic growth next year.

Therefore, they projected the SET index would stay at 726 points this year, higher than expected earlier at 674 points. It would edge higher to 812 points , up 48 from 764 points forecast earlier.

They estimated the index would peak at 845 points and reach a bottom at 625 points. It meant the Thai stock market would remain volatile next year with a wide range of 220 point.

However, 95 per cent of the securities analysts polled had the view that local political conflicts remain a key risk factor that could affect the index movement next year.

In addition, most analysts are concerned about impacts of a suspension of investment projects in the Map Ta Phut Industrial Estate because it could affect profits of major companies listed on SET.

Even so, combined profits earned by listed companies in 2010 would increase by 13 per cent with the hotel, petrochemicals and shipping sectors enjoying the high growth of 76.8, 40.6 and 20.39 per cent respectively in tandem with the global economic growth. (TNA)