Written on Nov 23, 2012
Tomorrow will be a day of reckoning for the government and its Pitak Siam opponents. The rally will be held at the nearby Royal Plaza, with more than 50,000 border police officers being prepared in riot gear at Parliament House (see pic). Although the street hasn’t anticipated this mass meeting will oust the government, don’t be complacent my friend. If the protest continues ceaselessly, the confrontation between the anti-government groups and the Red shirts could inevitably happen, and that could give an excuse to military for an intervention ultimately. At least, however, the government has prepared well by invoking the Internal Security Act (ISA) in risky areas starting yesterday until Nov 30. Hopefully, the current government could stay longer than many would have thought meaning continued political stability for the country.
Market view: Thai shares will remain in the cage even though HSBC said its Chinese PMI rose to a 13-month high of 50.4 in Nov. At this moment, you know what the treat in Thailand is. Investors are living on the sidelines awaiting the results of the mass rally along with the discussions in Europe the next few days. Stay tuned.
**Don’t be surprised about yesterday’s foreign net buy of USD472 mn. It’s apart from the crossing of CPALL (4.45% of outstanding shares). The deal price was 11.5% below the current market price (THB34.5 vs THB39). Omg! This would also hurt the Thai market too.**
No comments:
Post a Comment