BUSINESS NEWS:

Govt expects situation to normalize soon despite today’s clashes

Despite today’s clashes between the anti-government protesters and the police a deputy prime minister is hopeful, the situation will return to normal in a week’s time.

Thousands of policemen broke into Government House compound Friday morning in a move to push out protesters who have been camping there since Tuesday.

The raid followed the Civil Court injunction that instructed the protesters to move out.

But today the PAD lawyer has also filed a petition with the Appeal Court which accepted to consider the Civil Court’s order.

At the same time, the police tried to disperse another group of demonstrators at Bangkok’s Makkawan Bridge by removing barriers set up by the People’s Alliance for Democracy-led protesters.

Clashes between both sides took place at both locations before protesters returned to Government House compound after some 5,000 policemen reportedly pulled out.

Deputy Prime Minister, Surapong Suebwonglee, commented that the police have been under strict instruction not to use force against protesters inside Government House.

He expects the situation to be normalized within one week.

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AbacPoll: 6 in 10 foreigners unaware of tensed anti-government protest

The latest survey has found that a large number of foreigners in Thailand have not been aware of the boiling political conflict between the People Power Party-led administration and the anti-government protesters.

Just before the clashes between the People’s Alliance for Democracy-led protesters and the police broke out today ABAC Poll went down the streets of Bangkok to ask foreigners what they thought of the political standoff.

And surveyors found that around 6 in 10 of foreign respondents were not aware of the situation.

Besides among those who have heard of what has been going on in Thai politics more than half said that the protest was normal in democracy with three in four urged that there should never be any use of violence.

ABAC Poll director, Noppadon Kannika, said that the survey also shows that most foreign investors, businesspeople and tourists still hold positive view on Thailand.

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BoT affirms Thai economy still on recovery trend in July

Official data out of the Thai central bank today confirmed the local economy has continued to pick up last month even though high imports pushed trade balance into deficit.

Thai exports have soared to a record high by almost 44% to more than 16 billion dollars while imports surged some 53% as well to 53.4 billion dollars in July.

As a result, the country’s trade balance fell from previous surplus to a deficit of 762 million dollars last month.

The country’s consumption also improved from a 0.8% increase in June to a 3.4% rise in the following month.

Economists said higher consumption index mirrors the recovery trend in the economy.

At the same time, private investment edged up nearly 0.5% the rate which is somehow lower than June’s 0.9% rise.

And domestic business sentiment index also rose from 40.9 to 41.5 in July due to lower pressure on costs following a continued fall in oil prices.

Still, an index that is below the 50-point mark still means weak confidence.

Analysts commented that a major concern that could impact the outlook of the Thai economy remains politics after they have hoped easing inflation and the state economic stimulus measures would help Thailand register a sound second half for this year.

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Commerce Minister adamant August CPI to ease to 7%

Ahead of the official release of August CPI data the commerce minister has expressed his confidence that local inflation would ease considerably from the previous peak.

Commerce Minister, Chaiya Sasomsap, said that this week Cabinet meeting has discussed the inflationary pressure in Thailand and estimated that Consumer Price Index should fall to 7% this month.

Thai CPI hit its new decade-high of 9.2% in July.

But analysts polled by Reuters this week have predicted that August CPI would ease to around 8.7%.

In any case, Chaiya added that with the lower estimate in mind the government expects this year’s inflation to average 7-8%.

The commerce minister, however, noted that it would be the responsibilities of the Finance Ministry and the Bank of Thailand to control inflationary pressure as the commerce ministry can only be in charge of prices.

He also stated his recent meetings with various local producers assured him that there would not be any upward adjustment of goods prices at least until the end of the year.

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Supreme Administrative Court agrees to let bus fare rise in effect from Sept, 1

Bangkok bus commuters are warned to prepare to pay more for each ride from Monday after the Administrative Court today gave an okay to the months-long request for a fare rise.

The Supreme Administrative Court this morning ruled to cancel an earlier injunction by the Central Administrative Court which suspended fare hikes by private bus operators.

The People's Network Opposing Public Bus Fare Hikes sought the injunction against the planned rise in May.

With the halt order lifted the fare increase will come into effect on September 1.

Accordingly, air-conditioned bus fare will go up by one baht per each predetermined distance which will run 15 - 27 baht after the change.

Meanwhile, regular bus, minibus and passenger pickup truck fare will increase from 8.5, 7 and 6.5 baht to 10, 8 and 7.5 baht, respectively.


SET MONITOR:

Thailand’s main stock market rebounded late Friday to end marginally higher despite boiling political conflict.

The Stock Exchange of Thailand composite index added 1.6 points at 684.4 with moderate volume of nearly 10 billion baht or about 291 million dollars.

Foreign investors sold actively again with a net value of 879 million baht which is almost 26 million dollars.

Local institutions were the biggest net buyer of 630 million baht or 18.5 million dollars followed by retail investors or 249 million baht. That’s some 7 million dollars.

The local bourse edged up 0.24% by Friday close after heavy investor sell-out on fears of heightened worries over political instability.

But significant late buying into energy and banking shares helped the market finished in the positive territory.

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