BOT revised GDP up to a contraction of 2.5-3.5% in 2009, and an expansion of 3.3- 5.3% in 2010

Bank of Thailand has revised GDP forecast up

on the back of improved global economy, and

big government spending.



GDP 2009 is revised up to a contraction of 2.5-3.5%

from a contraction of 3.0-4.5%



GDP 2010 is revised up to a growth of 3.3-5.3%

from a growth of 3.0-5.0%



Bank of Thailand also expects a 3Q09 GDP will

register a contraction of 3.0-3.5% year-year,

but will grow 2.1-2.6% quarter-quarter.



Strategy: Although our positive view on the

market over the next 3-6 months from now

is reiterated, risk of short-term correction

to 660-680 point is maintained. Our stock

weighting recommendation remains at 60%

of the portfolio.



As the market has already downed more than 2%

today, any short-term bounce is likely before

the market close or will continue tomorrow. However,

only trading is recommended at this juncture.



Best regards,
Adisak Phupiphathirungul, CFA
Equity Strategist, Research Department
Ayudhya Securities Plc.
Tel +66 2659 7000 Ext 5005