Little impact seen from referendum

Asset Plus Securities analyst Pongpan Apinyakul yesterday said that domestic politics, however it played out in the coming year, was unlikely to have much of an effect on the stock exchange as it was already priced into the market.
Although there could be more political movement in 2013 than during this year, the country and the stock market were unlikely to face increased risk, he said.
In recent years, Thai capital markets, and the bourse in particular, had received only a very small impact from the political factor, he said.
“Importantly, we do not expect the political factor will affect economic fundamentals or businesses. There will not be much concern if the fundamentals are not changed. We expect the [Stock Exchange of Thailand] Index to move between 1,300 and 1,400 points [next year],” Pongpan added.
Weidt Nuchjalearn, senior executive vice president of Krung Thai Bank, said he saw no concern from politics in regard to the economy, which would continue to grow.
A national referendum would be a good start to lessening political conflicts, he said, adding that banks needed to see the nation at peace, with development and more investment.
Monthol Junchaya, chief investment officer at One Asset Management, said Thailand was used to political risk and it was difficult to predict the future domestic situation.
However, investors pay more attention to the government’s policies and their consistent implementation, he said, and if there is a policy change, investors will keep an eye on the impact before deciding on their investment.
“Currently, the country’s major policy plan and direction is clearly laid out. Therefore, the political factor does not have much weight. However, if politics is stable, it will be better for the investment environment. Previously, the Thai stock market had risen partly because of political stability,” he added..