Tisco cuts SET forecast as stars portend crisis in 2008.

Byline: Darana Chudasri

Dec. 22--Tisco Securities has cut its target for the Stock Exchange of Thailand index to 780 points at the end of 2007, down from 840 in its previous forecast.

Tom Paiboon Nalinthrangkurn, a managing director at Tisco Securities, said the market was expected to be weak next year due to poor foreign investor confidence in government policy.

Foreign investment in the capital market would weaken through 2007 due to the new 30 percent reserve requirement for bond and money market inflows.

While policymakers have exempted stock and direct investments after Tuesday's market crash, analysts said investors remained shaken …