Thai Stocks Likely To Remain Rangebound

(RTTNews) - The Thai stock market has finished higher in two of three trading days since the end of the two-day slide in which it had slumped more than 20 points or 1.5 percent. The Stock Exchange of Thailand now sits just above the 1,390-point plateau although it may not be able to hold those gains.

The global forecast for the Asian markets is negative on renewed concerns about the outlook for interest rates. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to follow the latter lead.

The SET finished sharply higher on Tuesday following gains from the consumer, finance, industrial, property, resource, service and technology sectors.

For the day, the index advanced 18.23 points or 1.33 percent to finish at 1,390.88 after trading between 1,375.29 and 1,395.70. Volume was 8.886 billion shares worth 39.119 billion baht. There were 323 gainers and 154 decliners, with 188 stocks finishing unchanged.

Among the actives, Advanced Info climbed 1.08 percent, while Thailand Airport and Siam Commercial Bank both strengthened 1.69 percent, Banpu and Krung Thai Bank both collected 0.93 percent, Bangkok Bank rose 0.33 percent, Bangkok Dusit Medical picked up 0.90 percent, Bangkok Expressway perked 0.71 percent, B. Grimm spiked 2.86 percent, BTS Group surged 2.56 percent, CP All Public increased 0.90 percent, Charoen Pokphand Foods jumped 1.79 percent, Energy Absolute shed 0.53 percent, Gulf gained 2.22 percent, Kasikornbank advanced 0.95 percent, Krung Thai Card added 0.50 percent, PTT Oil & Retail gathered 0.81 percent, PTT Exploration and Production stumbled 2.39 percent, PTT Global Chemical rallied 1.63 percent, SCG Packaging soared 3.24 percent, Siam Concrete accelerated 2.48 percent, Thai Oil was up 1.94 percent, True Corporation improved 1.80 percent and TTB Bank, Asset World and PTT were unchanged.

The lead from Wall Street is bleak as the major averages opened slightly higher on Tuesday but quickly turned lower and finished deep in the red.

The Dow stumbled 178.20 points or 0.42 percent to finish at 42,528.36, while the NASDAQ plummeted 375.30 points or 1.89 percent to close at 19,489.68 and the S&P 500 sank 66.35 points or 1.11 percent to end at 5,909.03.

The sharp pullback by stocks came amid a notable increase by treasury yields, with the yield on the benchmark 10-year note surging to its highest closing level in eight months.

The jump by treasury yields, which led to concerns about the outlook for interest rates, came following the release of some upbeat U.S. economic data.

The Institute for Supply Management said U.S. service sector activity increased more than expected in December. The report also said the prices index surged to a one-year high, leading to concerns that inflation will remain sticky. Also, the Labor Department said job openings in the U.S. unexpectedly increased in November.

Oil prices climbed higher Tuesday amid a possible supply shortage after China decided to reject imports from Iran and Russia, while unusually cold weather in the U.S. also contributed to the rise in oil prices. West Texas Intermediate Crude oil futures for February closed up $0.69 or 0.94 percent at $74.25 a barrel.