Downgrade to underweight from trading sell with new 740 index target for end-2010

Politics still the main risk in 2010.


With former Prime Minister Thaksin''''''''s THB. 76000 asset-confiscation case approching the final stage. Believing that he might step up efforts to topple the government. This would heighten political risks. Conflicts amoung coallition partners may threaten goverment stability.

Believing that the Democrat Party could call for General election in late 2010 to early 2011.

Mab Ta Put court case could drag on for some time.

Foreign Fund inflows should continue as long as the global economic recovery is intact and there is no worsening in the Thai political situation. Howerver, the inflows are not likely to be as high as in 2009. This is because the market is not as cheap as it was in 2009.