ID :
118889
Tue, 04/27/2010 - 09:51
Auther :
Shortlink :
http://m.oananews.org//node/118889
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SET index target likely to be revised if political crisis escalates
BANGKOK, April 27 (TNA) – The Securities Analysts Association is ready to revise the target of the Stock Exchange of Thailand (SET) composite index set at the end of this year immediately if the current political crisis escalates, according to association president Sombat Naravuthichai.
Earlier, the association scheduled a revision of the index target in June. Mr Sombat said the ongoing political turmoil is playing gave an 80 per cent weight to the SET index.
Mr Sombat conceded concern regarding the prolonged rally by anti-government Red Shirt protesters and the gathering of the so-called multi-coloured groups of protesters because there is a risk of clashes between the groups.
He said the association projected the SET index would stay around 827 points in 2010, but the index is likely to fall to as low as 688 points if the political disturbance worsens.
The political standoff, which has lasted for over four years, has put Thailand at a disadvantage with its neighbouring countries, he noted.
“Whenever there is political tension and violence, the SET index will usually stay below its fundamental by 5-7 per cent. It causes foreign investors to shift their investment to stock markets in neighbouring countries such as Indonesia and the Philippines,” he said. (TNA)
Earlier, the association scheduled a revision of the index target in June. Mr Sombat said the ongoing political turmoil is playing gave an 80 per cent weight to the SET index.
Mr Sombat conceded concern regarding the prolonged rally by anti-government Red Shirt protesters and the gathering of the so-called multi-coloured groups of protesters because there is a risk of clashes between the groups.
He said the association projected the SET index would stay around 827 points in 2010, but the index is likely to fall to as low as 688 points if the political disturbance worsens.
The political standoff, which has lasted for over four years, has put Thailand at a disadvantage with its neighbouring countries, he noted.
“Whenever there is political tension and violence, the SET index will usually stay below its fundamental by 5-7 per cent. It causes foreign investors to shift their investment to stock markets in neighbouring countries such as Indonesia and the Philippines,” he said. (TNA)
