By Pracha Hariraksapitak
BANGKOK (Reuters) - Thai Prime Minister Samak Sundaravejshrugged off doubts about the stability of his five-month-oldgovernment on Wednesday, a day after two court rulings fuelledspeculation of new elections or even a coup.
Tuesday's decisions piled more pressure on the six-partycoalition government, already weakened by a prolonged streetcampaign which has unsettled investors, but Samak declined tosay how he would counter fresh moves by his opponents to ousthim.
"I am listening to all the criticism and will tell thepeople what I think on my Sunday TV show," Samak toldreporters, referring to his weekly television programme.
The opposition Democrat Party and several senators saidthey would file separate petitions to impeach the cabinet aftera Thai court said the government's support for a Cambodian bidto list a 900-year-old temple as a World Heritage site wasillegal.
Opponents of ousted Thai prime minister Thaksin Shinawatrahave whipped up a nationalist frenzy over the Preah Viheartemple, which many Thais believe belongs to Thailand, to try tokick out the pro-Thaksin government elected in December.
Also on Tuesday, a top leader of Samak's People Power Party(PPP) was found guilty of vote buying in the December poll andbanned from politics for 5 years, a ruling that could lead tothe dissolution of the main coalition party.
The legal defeats will force the government to focus on itspolitical survival at a precarious time for the economy, as itfaces soaring inflation and stuttering growth, analysts said.
The main stock index edged lower in afternoon trade asThailand's army commander denied the latest coup rumours.
General Anupong Paochinda dismissed newspaper reports thatthe government may ask its army allies to launch a coup to tearup the 2007 military-designed constitution which hasstrengthened the courts' oversight of politicians.
"A coup won't be any good for the country," said Anupong,who took part in the putsch against Thaksin in 2006. "Politicalproblems must be tackled through political means."
Despite his assurance, analysts said the long-term outlookfor Thai shares was poor, with the index down more than 16percent since a street campaign against Samak began on May 25.
"Although many stocks now look cheap, there should befurther downside to the market as a whole," Thanachartstrategist Pimpaka Nichgaroon said, predicting "more bad newsis on the way".
ELECTION TALK
Leaders of the People's Alliance for Democracy (PAD), whose2005 street campaign led to Thaksin's ouster, cheered the courtverdicts and vowed to continue their rallies until Samak quit.
Thanachart's Pimpaka said there was a good chance Samakwould dissolve parliament "within this quarter" to avoid thepossible disbanding of his party.
The conviction of deputy PPP leader Yongyut Tiyapairat forvote buying paved the way for the Election Commission to probewhether the party was involved.
The EC could then pass its findings to the ConstitutionalCourt, which could disband the PPP as happened to Thaksin'sformer Thai Rak Thai party (Thais Love Thais) after the coup.
A senior member of the PPP, which won the most votes inDecember on an avowedly pro-Thaksin ticket, told a Bangkokradio show on Wednesday that a new party had already beenformed and would welcome members of the PPP if it wasdisbanded.
Other analysts said a snap election was unlikely, but Samakmight shuffle his cabinet to buy time.
With more court cases coming to a head in July, thestruggle between Thaksin's supporters and his opponents in themilitary and royalist establishment for control of Thailand'sfuture looks set to drag on, analysts say.
"The ongoing political wrangles serve to reinforce ourcautious view on Thailand and we continue to believe that amarket friendly resolution is unlikely for the foreseeablefuture," Goldman Sachs said in a note to clients.
(Writing by Nopporn Wong-Anan; Editing by Darren Schuettlerand David Fox)
