Lower Open Called For Thai Stock Market

(RTTNews) - The Thai stock market has moved lower in two straight sessions, slumping almost a dozen points or 0.8 percent along the way. The Stock Exchange of Thailand now sits just beneath the 1,365-point plateau and it's likely to see more downward pressure again on Thursday.

The global forecast for the Asian markets suggests consolidation on a deteriorating outlook for interest rate cuts. The European and U.S. markets were down and the Asian bourses are expected to open in similar fashion.

The SET finished modestly lower on Wednesday following losses from the food, finance, industrial, service and technology sectors.

For the day, the index shed 8.62 points or 0.63 percent to finish at 1,364.52 after trading between 1,359.54 and 1,374.87. Volume was 20.398 billion shares worth 49.003 billion baht. There were 368 decliners and 109 gainers, with 167 stocks finishing unchanged.

Among the actives, Thailand Airport slipped 1.24 percent, while Asset World dropped 1.00 percent, Banpu plunged 2.36 percent, Bangkok Bank weakened 1.05 percent, Bangkok Dusit Medical advanced 0.92 percent, Bangkok Expressway dipped 0.68 percent, BTS Group was down 0.83 percent, CP All Public lost 0.48 percent, Charoen Pokphand Foods skidded 1.06 percent, Energy Absolute tanked 1.24 percent, Gulf shed 0.57 percent, Kasikornbank retreated 1.23 percent, Krung Thai Bank declined 1.24 percent, Krung Thai Card stumbled 1.69 percent, PTT Oil & Retail tumbled 1.65 percent, PTT sank 0.74 percent, PTT Exploration and Production spiked 2.39 percent, PTT Global Chemical surrendered 2.19 percent, SCG Packaging slumped 1.56 percent, Siam Concrete rose 0.37 percent, Thai Oil fell 0.45 percent, True Corporation rallied 2.54 percent, TTB Bank climbed 1.13 percent and Siam Commercial Bank, Advanced Info and B. Grimm were unchanged.

The lead from Wall Street is broadly negative as the major averages opened slightly lower but accelerated to the downside after the Federal Reserve's rate decision and statement.

The Dow stumbled 317.01 points or 0.82 percent to finish at 38,150.30, while the NASDAQ plummeted 345.88 points or 2.23 percent to close at 15,164.01 and the S&P 500 slumped 79.32 points or 1.61 percent to end at 4,845.65.

In the Fed's highly anticipated monetary policy announcement, it maintained the target range for the federal funds rate at 5.25 to 5.50 percent to support maximum employment and inflation at the rate of 2 percent.

However, the Fed also said it does not expect it will be appropriate to lower rates until it has gained greater confidence that inflation is moving sustainably toward 2 percent - triggering a wave of selling in the markets.

In U.S. economic news, payroll processor ADP said private sector job growth in the U.S. slowed more than expected in January.

Oil prices slumped Wednesday, weighed down by data showing an unexpected jump in U.S. crude inventories last week, and concerns about the outlook for demand after data showed another contraction in Chinese manufacturing activity. West Texas Intermediate Crude oil futures for March fell $1.97 or 2.5 percent at $75.85 a barrel.