Referendum result boosts confidence

INVESTORS will have more confidence now that the draft constitution has been approved in Sunday’s referendum with the economy likely to pick up in the current third and the fourth quarters, Padermpob Songkroh, Kasikorn Securities managing director said today.

Several factors will speed up the growth of the Thai economy including government and private investment as well as the start of the high season for tourism later this year.

However there are still several risks to this better economic performance including any delay of the upcoming election, the direction of Thai interest rates as well as US economy and its interest rates.

Meanwhile  Poramet Tongbua of Bualuang Securities’ research department said because the referendum result is the same as had been forecast the SET Index is unlikely to climb much higher than this.

Looking longer term, Mr Poramet said that if the next prime minister comes from the National Council for Peace and Order (NCPO), the economy will continue to grow.

However if the next prime minister is from a political party then policies might be changed which could interrupt economic growth.


Thai superstar Nadech Kugimiya casting his ballot in Sunday’s referendum. Photo:

By Panu Sangdeeching


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