Experts:Stable Thai politics will end fluctuating Thai bourse

BANGKOK, February 3 (TNA) - Experts say that the Stock Exchange of Thailand (SET) index will continue to fluctuate until ongoing domestic political problems alleviate. Paiboon Nalinthrangkurn, Chairman of the Federation of Thai Capital Market Organizations, acknowledged on Monday that the SET outlook is uncertain because the February 2 general election has not ended domestic problems, while foreign investors remain worried over the Thai economy. Paiboon foresaw that the Thai economy should grow by less than 3 per cent this year, cautioning if political unrest continued, the SET would be inferior to the stock markets of five other member countries of the Association of Southeast Asian Nations (ASEAN) as it could become the least attractive. Jumpon Saimala, Chief Executive Officer (CEO) of CIMB-Principal Asset Management Co, made similar comments, noting when the domestic political problems ease, investment on the Thai stock market will be bullish again because there are still investment demands. Jumpon predicted that the SET index should move around 1,200-1,500 points in 2014, depending on the domestic political situation and profits of listed companies, which should increase by 10-15 per cent this year. Adis Israngkura, Dean of the School of Development Economics of the National Institute of Development Administration (NIDA), also said persistent political problems would affect the overall Thai economy, assessing unless the domestic political problems ended within the second quarter, the Thai economy would grow by only 2.5 per cent this year, but if the domestic political problems continued throughout this year, the national economy should expand by only 2 per cent, which would shake international investors’ confidence and they could they, could then turn, from Thailand, to other ASEAN member countries. The NIDA dean urged Thai politicians to, thus, enter into a negotiation to find a solution to the nation. (TNA)