The House dissolution will give the stock market a shot in the arm, they said, but investment will be held back until the election outcome indicates if the national economic agenda will stay on track or be derailed.

Chanin Vongkusolkit, CEO of Banpu Plc, said dissolving the House was the best way to end the political crisis and return power to the people.

"The dissolution will reduce political pressure, and business people should be in a better position to make their plans," he said.

Kongkiat Opaswongkarn, CEO of Asia Asset Plc, said the business community would wait on the election result, as it was understood that if the Thai Rak Thai Party returned with a majority the economic

platform would not change.

"If the Democrats win, the mega-project plan could hit a stumbling block, and they will come up with new economic policies," he said. "Thus if Thai Rak Thai is the victor, investment should resume right away while investors might wait a little longer if the Democrats return to the scene."

Stock investors piled back into the market on the news that Thaksin had requested an audience with His Majesty the King, fuelling speculation that he would succumb to mounting calls to dissolve the House and order a snap poll. The SET Index closed up 9.12 points, or 1.2 per cent.

Suthitham Chirathivat of the Central Group said the political tension had had a limited effect on the economy and investment, but he wanted all the political problems to unwind as quickly as possible so that business could proceed.

Ammar Siamwalla, honorary adviser to the Thailand Develop-ment Research Institute, said Thaksin had decided to dissolve the House of Representatives because he could not answer some questions. Ammar believes that if Thai Rak Thai returns the government will proceed with those policies that stirred up dissatisfaction, like free-trade agreements and privatisation.

"He's dissolving because he knows he's coming back," he said.

A source from the securities industry said despite the latest turn of events the public could still launch an anti-Thaksin rally as the premier had not yet answered their questions.

"We believe that Thai Rak Thai will win fewer votes and that with that, political pressure could get worse," he said.

Kongkiat urged the public to accept the election results peaceably.

"If Thai Rak Thai comes back, everyone should accept the rules. We can no longer criticise him."

Chanin also said that a general election was fair to all sides and that if Thai Rak Thai was given another mandate, that would mean the public was no longer concerned with the sell-off of Shin Corp by Thaksin's family.

"Since the government can't run the country amid lingering doubts about the Shin sale, it's right to take the question to the people."

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The Nation