Stock analysts decrease SET index target to 828 points

BANGKOK, Aug 8 (TNA) – Most securities analysts in the Thai market have lowered their target for the Stock Exchange of Thailand (SET) composite index by 99 points to 828 at year end from the 927 points set earlier, according to a survey of analysts' opinions by the Securities Analysts Association.

Sombat Naravudhichai, association secretary-general, revealed the survey
seeking opinions of analysts from 22 companies on stock investment trends
during the August-December 2008 period found the analysts predicting that
the index would bottom out at 628 points.

They also revised the index target at end of 2009 downward to 896 from the
1,081 points set previously as they viewed Thailand's political factors
remained quite risky.

In addition, the survey found that 55 and 32 per cent of the analysts
respectively believed that the dissolution of the lower house of
Parliament and the core ruling coalition party would have positive impacts
on the stock market.

They indicated that such dissolutions would reduce political conflict and
the political situation would become clearer.

However, they shared the view that a new coup d'etat would have a negative
impact on the market because investors lack confidence and are uncertain
it would proceed without bloodshed as in the case of that on Sept 19,
2006.

Regarding key economic figures, most analysts maintained their economic
growth projections at 5 per cent for this year and 4.9 per cent for next
year.

They forecast operating results of listed companies would increase by 21.3
per cent this year and 6.6 per cent next year.

The inflation rate is expected to stay at 7.3 per cent this year and 4.9
per cent next year.