ANALYSTS' VIEW: Thai court rules PM Samak must quit

BANGKOK (Reuters) - A Thai court said on Tuesday Prime Minister Samak Sundaravej must step down because he violated the constitution by hosting TV cooking shows while in office.

The following are comments from analysts in reaction to the news:

ANALYSTS' VIEW:

- VIWAT TECHAPOONPOL, STRATEGIST AT TISCO SECURITIES:

"The stock market will react in a positive jump, but the rise will be limited as foreign investors are looking to cash out because external factors don't look good, while the court decision still doesn't help make the political situation clearer.

"The key factor is whether the coalition parties will continue to support Samak firmly. The market should continue to trade narrowly tomorrow until we know who is going to be the next prime minister.

"The PAD will not stop their demonstration ... as what they want is to overthrow the People Power Party."

- USARA WILAIPICH, ECONOMIST AT STANDARD CHARTERED BANK:

"The court ruling may reduce political tension temporarily.

"However, political conflict remains so we're still worried

about downside risk to growth given the political turmoil and a possible significant global slowdown.

"Deteriorating tourist income will weigh on growth and weaken the baht further as the current account is expected to shift from surplus into deficit in the second half of this year.

"Moreover, we are still of the view that the next move by the Bank of Thailand should be a cut in the policy rate but not until next year."

(Reporting by Bangkok bureau; Editing by Neil Fullick)