These sectors will, however, recover when the political situation becomes clear, the brokerage said in a research report late last week.

Businesses related to govern-ment spending - construction, cement, steel, industrial parks and information-technology installation - will also be under pressure. The impact on power plants, hospitals, petrochemicals and shipping will be neutral, said CNS.

Export-focused business will benefit from the possibility of the baht's depreciation triggered by the political situation.

Meanwhile, Siam City Securities said foreign direct investment and revenues in the service sector would slow down following the bloodless coup because tourists will postpone travelling to Thailand.

However, the slowdown will not last longer than three months, its research paper said.

The brokerage will lower earnings forecast for listed companies, in line with expected lower economic growth in the fourth quarter and the first quarter of 2007. However, since the coup was non-violent and the Council for Democratic Reform under Constitutional Monarchy has clearly expressed its intention to set up a civilian government within two weeks, the situation should return to normal rapidly, said Siam City Securities.

An acceptable new government would restore the confidence of foreign investors, the report said.

Siriporn Chanjindamanee

The Nation