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Published on March 10, 2008

The new government's recent stimulus package and the lifting of the capital controls have significantly boosted investors' confidence. In addition, rising prices of energy stocks and outstanding earnings in the sector supported by the record high oil and coal prices  support the Thai bourse overall.

These positive factors will support corporate earnings and stock value in 2008, but there are also risk factors including the apparent slowdown of the global economy, the liquidity crunch and the rapid rise of inflation.

The SET Index is expected to be volatile, hovering at 810-850 depending on positive and negative short-term factors. However, negative factors - particularly political issues - are expected to dominate this week. Investors should gradually make profit on blue-chip stocks including energy and petrochemicals, particularly when the SET rises above 840, and then shift to small and medium-sized stocks.

Sukit Udomsirikul, assistant MD of Siam City Securities.

The Nation