Renewed Support Anticipated For Thai Shares

(RTTNews) - The Thai stock market on Wednesday ended the nine-day winning streak in which it had surged almost 80 points or 5 percent. The Stock Exchange of Thailand now rests just beneath the 1,675-point plateau although it's expected to bounce higher again on Thursday.

The global forecast for the Asian markets is positive on easing concerns over the outlook for interest rates. The European and U.S. markets were up and the Asian bourses are expected to open in similar fashion.

The SET finished modestly lower on Wednesday as losses from the energy producers were mitigated by support from the financial sector.

For the day, the index shed 5.72 points or 0.34 percent to finish at 1,673.25 after trading between 1,668.07 and 1,685.11. Volume was 17.420 billion shares worth 76.437 billion baht. There were 998 decliners and 564 gainers, with 414 stocks finishing unchanged.

Among the actives, Advanced Info climbed 1.29 percent, while Thailand Airport shed 0.67 percent, Banpu plummeted 4.48 percent, Bangkok Bank strengthened 1.66 percent, Bangkok Dusit Medical advanced 0.85 percent, Bangkok Expressway added 0.52 percent, B. Grimm surged 4.40 percent, CP All Public sank 0.72 percent, Charoen Pokphand Foods retreated 1.63 percent, Energy Absolute declined 1.56 percent, Gulf gathered 0.45 percent, Kasikornbank jumped 1.68 percent, Krung Thai Bank skidded 1.12 percent, Krung Thai Card fell 0.43 percent, PTT tumbled 2.29 percent, PTT Exploration and Production plunged 4.57 percent, PTT Global Chemical gained 0.53 percent, SCG Packaging improved 0.87 percent, Siam Commercial Bank spiked 1.87 percent, Siam Concrete increased 0.88 percent, Thai Oil tanked 3.14 percent, True Corporation slid 0.41 percent, TTB Bank collected 0.71 percent and Asset World, BTS Group and PTT Oil & Retail were unchanged.

The lead from Wall Street is upbeat as the major averages shook off early weakness on Wednesday, moved firmly higher midday and ended solidly in the green.

The Dow jumped 133.40 points or 0.40 percent to finish at 33,269.77, while the NASDAQ climbed 71.78 points or 0.69 percent to close at 10,458.76 and the S&P 500 gained 28.83 points or 0.75 percent to end at 3,852.97.

The volatility on the day came as traders awaited and subsequently reacted to the minutes of the Federal Reserve's December monetary policy, which reinforced expectations the central bank is likely to continuing raising interest rates.

The minutes reiterated that officials continue to anticipate that ongoing rate increases would be appropriate - although perhaps slower - to achieve the Fed's dual objectives of maximum employment and price stability.

On the U.S. economic front, the Institute for Supply Management released a report showing U.S. manufacturing activity contracted at a slightly faster rate in the month of December.

Oil prices fell on Wednesday, extending recent losses as worries about energy demand amid rising fears of a global recession continued to weigh on the commodity. West Texas Intermediate Crude oil futures for February ended down $4.09 or 5.3 percent at $72.84 a barrel.

Closer to home, Thailand will release December data for consumer prices later today, with forecasts suggesting an increase of 6.00 percent for overall inflation - up from 5.55 percent in November. Core CPI is pegged at an annual 3.26 percent, up marginally from 3.22 percent in the previous month.