Thai share prices are likely to rise next week as anti-coup protests have fizzled and new economic data threw a positive light on the country's prospects, dealers said. However, investors will keep an eye on the inflation report due out Monday, which will be key to the central bank's decision on interest rate policy next month.
"The economic outlook has improved for the second half of the year, while politics is not as worrisome as it was previously," said Kanang Duangmanee, a senior economist at Kasikorn Research Centre.
Since late May, the Thai capital has been rattled by daily anti-junta protests organised by allies of deposed premier Thaksin Shinawatra, which so far remained peaceful.
They have called for a major demonstration in Bangkok on Saturday to demand an end to the military government, but Kanang said the protest was unlikely to draw a large crowd as past rallies have failed to gain traction.
Meanwhile, the central bank's rate-setting committee is scheduled to meet again on July 18. "The central bank is likely to leave the rate unchanged (at 3.5 percent), citing the current inflation rate," she added.
For the week to June 29, the Stock Exchangee of Thailand composite index rose 49.74 points or 6.84 percent to close at 776.79. Kanang said if inflation remained low in line with analysts' forecasts, the market would likely to extend gains to the 793-point level.
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