Thailand’s stock market has already bottomed out and is likely to turn around if the political tension eases, according to Stock Exchange of Thailand (SET) chairman Pakorn Malakul Na Ayuthaya.

Speaking of the Fiscal Policy Office statement that the Thai economy had already hit bottom in the first quarter of this year, he said the economy will continue to shrink from that quarter until the third quarter before turning positive in the last quarter of this year.

Regarding investment sentiment in SET, Mr. Pakorn said he had monitored the situation and believed stock prices had already bottomed out.

In the past month, foreign investors had returned to accumulate stocks with a net value of Bt70 billion, he said, adding that should political tensions ease, investment in the Thai bourse would pick up.

Sombat Naravuthichai, secretary-general of the Securities Analysts Association, said the SET composite index had climbed up close to the target level of 495 points set earlier.

The index is likely to surpass the 500-point level since global stock markets had recovered somewhat in the past two months.

He said the association sees the Thai economy as bottoming out in the second quarter of this year.

The economy will continue contracting until the third quarter before turning positive in the fourth quarter.

He believed the Mexican swine influenza outbreak will affect Thai stock prices in the short run, but will directly impact tourism and consumption since the public fears to travel and spend. (TNA)

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