Speaking at the third Asean Finance Ministers' Investor Seminar in Hong Kong, in which more than 1,000 institutional investors from 30 countries participated, he said most investors believe the overall economy of Asean remains favourable and attractive for investment.

"I've clarified with them that our political tension has eased with the general election set for November at the latest," he was quoted by Thai News Agency as saying.

"Most investors have not retreated from the Thai stock market. What they are doing now is waiting for a clear political direction," he said.

"Unless there are [further] political uncertainties, the SET Index will definitely surge. Should the Thai Rak Thai Party win the election and form the new government again, the SET Index will surpass 800 points."

Some investors asked what was behind the economic slowdown in Thailand and were told that the situation resulted from rising fuel prices, higher interest rates and political uncertainties. Even so, Thanong said, most investors expressed interest in the Thai stock market since they know its price/earnings ratio is only about eight times - which indicates more room for investors to make profits - while that of Asean as a whole averages 12 times.

Industry groups to which investors pay attention include telecommunications, energy, commercial banks and businesses involved in mega-projects, the minister said.

Concerning a news report that caretaker Prime Minister Thaksin Shinawatra might step aside from politics, Thanong said he had advised investors at the seminar that the premier had never been concerned about remaining in the top post.

He said some groups were dissatisfied with Thaksin partly because he is such a high-calibre person that other politicians have trouble competing with him.