Sep. 7--The investment outlook for the Thai stock market the last four months of the year is expected to be positive due to improved economic signs, says Nimit Wongjariyakul, chief operating officer of Capital Nomura Securities Plc (CNS).

Mr Nimit said improvement in the country's gross domestic product (GDP), which has been forecast to return to growth next year, would help improve investor confidence in the latter half of the year.

"Stocks will rise again in the last four months as expectations of profits in 2010 will be on the minds of many investors," he said. "There's nothing more to doubt this year."

He added that low interest rates would keep local investors attracted to stocks rather than bank savings.

The Bank of Thailand reported a 5.4 percent contraction in GDP in the second quarter. But the rate improved by 1.7 percentage points compared to the first quarter, signalling the economy is shrinking at a slower rate.

The BoT has projected the economy would post positive growth of 3-5 percent next year, driven by government spending and exports.

Takeshi Nishida, president of Capital Nomura Securities Plc, said Japanese investors were considering reinvesting in the Thai stock market, but a more stable environment is required.

He said that Japanese investment was aggressive in the 1990s but had faded ever since the Asian economic crisis in 1997.

Capital Nomura will have one initial public offering in the latter half and a few more next year.

It is currently conducting a feasibility study on new products to be launched in the near future in order to expand its market. It recently introduced an Employee Joint Investment Plan (EJIP).

Currently, CNS holds a 2.15 percent share of total stock market turnover.

For its fiscal third quarter ending on May 31, the company recorded a 60 percent year-on-year drop in net profit to 16.85 million baht from 42.51 million last year. Nine-month net profit was down by 70 percent to 27.45 million baht.

Brokerage revenue from securities and derivative business in the third quarter decreased by 15.9 percent or 22.28 million due to the decrease in overall stock trading volume per day to 15.73 billion baht, a 22.3 percent drop from 20.25 billion in the third quarter last year.

Shares of CNS closed on Friday on the Stock Exchange of Thailand at 19.90 baht, up 30 satang, in trade worth 1.8 million baht.

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