SET index on the rise

BANGKOK, June 25 (TNA) - The Stock Exchange of Thailand (SET) index is now on its upward trend and is expected to increase to reach 1,500 points in the near future. Sukit Udomsirikul, Managing Director and Head of Research at Maybank Kim Eng Securities, told journalists of the positive prospect on Wednesday, when the SET index closed at 1,468.49 points, up 7.57 from Tuesday’s close. Sukit acknowledged, however, that the increase of the SET index would depend on progress of the army-led National Council for Peace and Order (NCPO)'s policies, after it has taken the national administrative power since May 22, 2014. Sukit said the expected rise of the SET index is in line with Thailand’s projected economic growth this year at 2.5 per cent and profits of listed firms at 10 per cent, most of which would be derived from financial, communication and energy sectors. The securities expert projected that the Thai economy should enjoy sustainable growth at 4 per cent next year, when profits of listed firms should rise by 11 per cent, enabling the SET index to advance to 1,650. On worries over Washington's downgrading Thailand over the human trafficking crux and the European Union (EU)'s slowing down its relations with the Kingdom, the securities expert acknowledged that it is still unknown whether both superpower would boycott Thai goods, which would affect Thai exports because the United States and European countries are Thailand’s key export markets. Benjarong Suwankiri, Head of TMB Bank’s Economic Analysis Centre, forecast, meanwhile, that the Thai economy should expand by 2 per cent this year, thanks to the military junta's policies which appear to be favourable to the public. As several of the NCPO's policies would not be completed this year, Benjarong noted that several major projects, such as those in infrastructure development, need to be monitored closely as they would be the major driving force of the national economy in 2015. (TNA)