According to KGI Securities, Thai stock shares would be highly volatile this month, as there would be both positive and negative factors which could affect share prices across the market.

The brokerage firm predicts that foreign funds would continue pouring into emerging markets across Asia, thanks to the relaxed monetary policies of the Asian nations and the global economic recovery.

KGI, however, have also pointed out that there would be a number of negative factors affecting share prices such as weak profit margins among companies during the first quarter. The second factor is that continuously rising share prices may trigger investors to make short-term profits and lead to a market correction. Lastly, there is also a lot of uncertainty on how the political situation would turn out this month.

The company also said the outcomes of the Prime Minister’s cases regarding the unfair transfer of the National Security Council Thawin Pliensri and the Rice Pledging Scheme fraud would play a pivotal role in determining the overall direction of the local stock market during the second half of this month.

Therefore, the firm has advised investors to focus on trading shares that would outperform the market and show promising signs of a strong profit margin during the second quarter of this year. KGI recommended to focus on trading shares that have low risks such as the ones in the energy and telecommunications sectors and avoid buying shares that are directly affected from the political crisis.