Analyst:SET index should rise in medium term

BANGKOK, January 6 (TNA) - In the medium term, the Stock Exchange of Thailand (SET) index should rise because the new government is likely proceed with the country's planned mega infrastructure development projects as Thailand needs infrastructure investment to stimulate the national economy. Nimit Wongjariyakul, Executive Director and Chief Operating Officer of Capital Nomura Securities Public Company Limited, told reporters on Monday, however, that the SET index could not rise recently due to concerns over a planned siege to Bangkok on January 13 onwards by the anti-government People's Democratic Reform Committee (PDRC). Nimit acknowledged that he finds it difficult to predict the SET index trend and the SET outlook this year pending anti-government protests and concerned parties are, thus, waiting to see how long the protests will continue. Nimit noted that his company has planned to cope with the situation on January 13, when PDRC protesters plan to lay siege to Bangkok, saying he does not expect any serious problem because the country has passed through political demonstrations in the capital's inner and business areas for several times. The securities executive cautioned, nonetheless, that domestic political problems are affecting Thailand's economic growth, which should be now lower than expected, expressing his wish that the new general election on February 2, 2014 would inject money to stimulate the national economy to a certain extent. The securities executive also revised projected profits in some Thai business sectors downward, including automobile parts, real estate and personal loan sectors, as the country's household debt ratio, which is exceeding 80 per cent of Thailand's gross domestic product (GDP), is reducing people's purchases of durable goods namely vehicles and houses. Meanwhile, the Ministry of Finance admitted that political problems and the ongoing depreciation of the Thai baht have affected government revenues in the 2014 fiscal year. Caretaker Deputy Finance Minister Benja Louichareon pointed out that collected excise tax in the first three months of the 2014 fiscal year, from October 1-December 31, 2013, was 4 billion baht lower year-on-year and the collection throughout the 2014 fiscal year should fall short of its target by 50 billion baht, from 460 billion baht to 410 billion baht, while customs tariff fell short of their target by 6 billion baht during the same period and the customs tariff collection should be 10 per cent lower than its target throughout the 2014 fiscal year. According to the caretaker deputy finance minister, totally-collected revenue tax in the first three months of the 2014 fiscal year, however, exceeded its target by 9.8 billion baht, as overall domestic consumption and spending remained normal. Regarding anti-government protesters' plan to lay siege to Bangkok and to cut electricity supply of Thai ministries on January 13, the caretaker deputy finance minister revealed that her ministry has prepared measures to cope with the situation and the payment of government officials' salaries and the disbursement of tariffs and project investment would remain intact.(TNA)