Bangkok--15 Jan--NextVIEW Volatility will remain in Thai stock market in the first half of 2008, said analyst at ATIC @Bangkok 2008. However, the market will recover in the second half of the year as domestic political situation and the U.S. sub prime crisis are expected to ease. Mr. Pichai Lertsupongkit, Director of Analyst Association told a seminar on “Thai Stock Market Outlook after Election” at the Asia Traders and Investors Convention or ATIC @Bangkok 2008 that Thai stock market after the national election will likely to remain in high volatility especially in the first half of the year, affected mainly by two influencing factors: domestic political uncertainty and U.S. economy condition. However, both factors are expected to improve in the second half of 2008 and more positive signals will appear. The overall stock market is still attractive in 2008. The right time to invest is the next 1-2 months after the market has already reacted to the risk factors on political situation and the world’s uncertain economic conditions, according to Mr. Pichai. At present, the Thai market is much more attractive with a market P/E of 11x compared to neighboring countries’ P/E of 16x-17x. Based on target prices of stocks in SET 50 Index, the suitable index of the Thai market at 2008 year end would be 987 points giving 24% potential upside gain and with potential returns of 3.6% from dividends in the next 2-3 months, the overall potential return would be 27.6% from current market index, added Mr.Pichai. “Looking into each individual stock, we find 9 stocks offering more than 6% return only from dividends. If the index goes below 800 points (some said it may goes down to 770 or 740), the cheaper stock prices will result in higher dividend yields”, said Mr.Pichai. Mr.Pichai also believes that the interest rates of Europe and U.S. are going to reduce which will be a positive factor for capital markets around the world. Supporting evidence to his belief is a forecast by the world’s leading analyst that U.S. Federal Reserve will cut the interest and will not stop at 3%. Goldman Sachs estimates that Fed will slash the interest rate down to 2.5% by the end of this year. All these comments make him believe Europe will also reduce its interest rate. For more information, please contact: Khun Pornlada, Khun Natchaya Tel. 02-253-5050 ext 318, 114