SET up despite persistent political instability
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The Stock Exchange of Thailand would remain under political influence, despite a rise by 6.29 points or 0.48 per cent on Friday after the Constitutional Court's ruling.
The Thai baht however weakened slightly to 32.88 against US dollar at 5.32pm. HSBC forecasts the further weakening to 34 this year and to 34.5 in 2015.
Asia Plus Securities noted that as the possibility of an election postponement is slim, political instability would further rock the market.
The SET index ended the week at 1,314.63 points on turnover of Bt34 billion.
Foreign investors sold Thai shares for Bt160 million net, pushing the net-sell position this month to Bt734 million. In 2013, they sold Thai shares for over Bt200 billion net.
Asia Plus said in a research note despite the court's ruling, it remains to be seen if the government would delay the elections from February 2. The government is expected to proceed with the original schedule, it noted. It would be unexpected if the government decides to discuss a possible postponement with the Election Commission.
Thailand and other emerging markets are expected to benefit from foreign investment, given the high prices of stocks in developed markets like the US and Japan. The markets' expected price-to-earning ratios were 15.5 times and 20 times, respectively, against the range of 12-16 times in emerging markets.
"The index could rise further if it could breach the 1,333 points level," it said.
