Futures and Commodity Market News

Sat May 17, 2008

Breaking financial news 24/7 courtesy of TradingCharts.com Inc. / TFC Commodity Charts

May 09, 2008 (Bangkok Post - McClatchy-Tribune Information Services via COMTEX) -- Economic growth for Thailand will exceed 6 percent this year with the help of higher government spending and investment, according to Finance Minister Surapong Suebwonglee.

Dr Surapong, speaking at the opening of the Money Expo 2008 exhibition yesterday, said first-quarter growth was 6 percent thanks to increased investor confidence following last December's general election and the implementation of new fiscal stimulus programmes.

He acknowledged that inflation could reach 6 percent in the second quarter from 5 percent in the first due to rising oil prices.

"But I don't think we will see oil prices this year reach $200 per barrel. Even if prices continue to rise, the government is moving forward to implement a national energy savings plan and expand mass transit systems to reduce costs," Dr Surapong said.

But oil prices, which hovered around $124 per barrel yesterday, clearly represent one of several risk factors that are affecting investor and consumer confidence.

Financial institutions exhibiting at the Queen Sirikit National Convention Center yesterday generally featured more modest booths than in past years, a reflection perhaps of the importance of cost controls in uncertain times.

Up to 700,000 people are expected to attend the four-day Money Expo, organised by the Stock Exchange of Thailand and Money and Banking magazine.

Zero-interest housing loans, personal investment and wealth management services is the main focus for many banks and securities brokers at the fair.

Prasarn Trairatvorakul, the president of Kasikornbank, said that while consumer confidence had improved this year from 2007, the rising cost of food and other products was forcing consumers to be more prudent in their spending.

Rachanee Nopmuang, an executive vice-president at Bangkok Bank, agreed that consumers were being more cautious about spending.

But mortgage loans remained in high demand, particularly following the government's approval of tax reductions on transfer and registration fees, which took effect on March 28.

Many banks, including Bangkok Bank, KBank, Siam Commercial Bank and TMB Bank, are offering zero-interest on mortgage loans for the first three to six months.

Siam City Bank is offering one of the best bargains at the fair, with interest-free housing loans for the first nine months.

Local brokers and asset management firms are also well-represented at the expo, with staff on hand to offer advice on how best to manage one's savings.

Analysts and investment strategists will also be conducting open seminars for investors on market trends. The event runs through Sunday.

By Nuntawun Polkuamdee & Somruedi Banchongduang

To see more of the Bangkok Post, or to subscribe to the newspaper, go to
http://www.bangkokpost.com. Copyright (c) 2008, Bangkok Post, Thailand Distributed by
McClatchy-Tribune Information Services. For reprints, email
tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to
847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303,
Glenview, IL 60025, USA.

Copyright (C) 2008 Bangkok Post, Thailand

Please read the End User Agreement.
By accessing this page, you agree to the terms and conditions of the End User Agreement.

News provided by COMTEX