More political uncertainty, more stock market doldrums
With the ongoing political uncertainty and lingering high fuel prices, Ayudhaya Securities has become the first brokerage firm to officially cut its maximum SET index target from 827 to 784 points by the end of the year, its chief executive MR Sasiprin Chandratat said yesterday.
Sasiprin said that if the political tension is resolved in the first half of the year, the stock market should rebound in the second half. He said investors need a neutral change that is acceptable to all sides. Currently, investors are just waiting for the decision of caretaker Prime Minister Thaksin Shinawatra."His decision will be the turning point of the current political situation," said Sasiprin. As The Nation went to press, Thaksin's decision to resolve the political turmoil was not yet available, despite more than half Bangkok's voters casting "No Vote " ballots. These were the first results announced by the Election Commission. Moreover, it is uncertain whether Parliament can be seated as it is clear at the moment that Thai Rak Thai Party has failed to win all 500 seats.Sasiprin commented that the stock market in the second quarter of the year should perform better than in the first quarter as the general election has passed. However, the daily trading volume may not rebound as well. Unsolved political problems will rather cause investors to adopt a wait-and-see attitude in the second quarter and leave their assets in the bank. Sasiprin predicted that the Stock Exchange of Thailand (SET) will fail to achieve its target of 100 newly listed companies this year. "We don't believe the SET will reach its target of 100 newly listed companies this year. We think it will be nearer half that figure, because of the investment doldrums caused by the political uncertainty," he said. According to Sasiprin, two of AYS's customers have postponed their initial public offerings (IPOs) to late June. "If the market circumstances in June remain unclear, the IPO subscriptions will probably be postponed again," said Sasiprin. Siriporn Chanjindamanee, The Nation
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