Formation of the fund will be on the agenda at next month's meeting of the SET's board of governors for the information of members, SET chairman Vijit Supinit said yesterday.

The meeting will not be asked for approval because further details have still to come from both the Finance Ministry and MFC Asset Management.

The Vayupak Fund 2, with a proposed size of Bt100 billion, is still subject to Finance Ministry approval.

If the fund is viable, it will use investments from the public to buy listed company stocks from the Finance Ministry.

"We [the stock exchange] will partly invest in the fund, while MFC will raise funds from the public," Vijit said.

Earlier, Finance Minister Chalongphob Sussangkarn said that only one or two electric train routes were expected to be open for bidding in the term of the interim government.

Meanwhile, Vijit estimated that the SET index would reach 750 points this year on the back of the country's strong economic fundamentals and good

trade balance. The downward trend in interest rates and solid export growth will give the Thai stock market a big boost, he said.

"The government sector must take a lead to drive the country's economic growth. The overall picture for the Thai economy [is that it] remains in good shape, and the stock market outlook will improve in the second half of this year," Vijit said.

SET president Patareeya Benjapholchai said that the present thin trading volume in the stock market is because a number of  investors have  slowed their investment activity to wait for a clearer picture of the country's economic outlook.

Siriporn Chanjindamanee

The Nation