Thailand will likely extend a tough security law on Tuesday for another week after opposition protest leaders called for a “historic rally” this weekend to paralyse Bangkok in their campaign to force elections.

Tens of thousands of protesters remained on the streets in the capital’s historic heart in their trademark red shirts, calling for Prime Minister Abhisit Vejjajiva to dissolve parliament as their protest enters a second week.

Their leaders, allied with toppled premier Thaksin Shinawatra, have not revealed details of their plans for the rally on Saturday and whether they plan to fan out across the city as 65,000 did last Saturday.

“Since the protest continues and they are calling for another mass gathering, security advisers have recommended that the cabinet extend the use of the Internal Security Act,” said Panitan Watanayagorn, an acting government spokesman.

The cabinet will formally decide later on Tuesday at its weekly meeting whether the law will be extended until March 30.

The rally has so far been orderly and Abhisit still maintains the support of the majority in parliament and the backing of the powerful military.

These factors have encouraged continued fund flows into Thai assets, pushing Thai stocks to around a 20-month on Tuesday, drawn by cheap share prices and high dividend yields.

“Foreign funds should continue to flow into the market. Thai politics is still not a big worry,” Thanachart Securities said in a note to clients.

Abhisit has given no indication he would bow to the protesters’ demands for early elections, which the opposition is well placed to win.

He insists the deep political divisions would undermine any chance of peaceful polls if an election were held now.

The ISA gives the country’s top security agency, the Internal Security Operations Command, an option to impose curfews, operate checkpoints and restricts movements if protests turn violent.

Political analysts say the longer the protesters are on the streets, the greater the risk a frustrated minority could break ranks and spark sporadic unrest, as they did in April 2008 and Thailand’s image as a safe tourist destination took a hit.

Such concerns were raised by two attacks on Saturday night on what authorities said were symbolic targets — one grenade landed near the Defence Ministry, wounding two people, while an explosive device was hurled at the headquarters of the National Anti-Corruption Commission in a province bordering Bangkok.

Neither attack has been linked to the “red shirts” and there has been no sign of violence at the main protest site.

On Tuesday, protesters gave alms to dozens of Buddhist monks who chanted and blessed them on the rally stage. They later plan to ride up to 2,000 motorcycles around Bangkok to give out leaflets, urging city residents to join the rally.

Protesters promised not to disrupt the cabinet meeting which has been moved to the Ministry of Public Health in a province bordering Bangkok instead of the usual Government House because of the protests.

Abhisit has not entered his office, his private home, or the parliament since March 12, instead working out of a military base which also doubles as a safe house.

(Writing by Ambika Ahuja; Additional Reporting by Viparat Jantraprapaweth; Editing by Jason Szep)
Panarat Thepgumpanat