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Additional Support Expected For Thai Stock Market

The Thai stock market has alternated between positive and negative finishes through the last six trading days since the end of the three-day winning streak in which it had collected more than 20 points or 2 percent. The Stock Exchange of Thailand settled just below the 1,130-point plateau, and now analysts are forecasting continued strength when the market opens on Monday.

The global forecast for the Asian markets is mixed to higher on optimism that European finance ministers will approve a new bailout package for Greece later in the day. Limiting the upside are rising tensions in the Middle East as Iran has discontinued the sale of oil to any British of French companies, in response to the latest round of EU sanctions - although the price of oil is climbing as a result. The European markets were mixed on Friday and the U.S. bourses were mixed, and the Asian markets are expected to split the difference.

The SET finished modestly higher on Friday following gains from the energy producers and the financial shares.

For the day, the index climbed 9.68 points or 0.86 percent to finish at 1,129.93 after trading between 1,123.01 and 1,132.73. Volume was 4.480 billion shares worth 39.771 billion baht. There were 270 gainers and 193 decliners, with 176 stocks finishing unchanged.

Among the gainers, energy giant PTT was up 0.88 percent, while PTT Exploration and Production added 1.14 percent, PTT Global Chemicals jumped 2.41 percent, coal miner Banpu surged 5.64 percent, Siam Concrete climbed 2.02 percent and Bangkok Bank collected 2.09 percent.

The lead from Wall Street is inconclusive as stocks turned in a relatively lackluster performance on Friday after showing a strong upward move in the previous session. Nonetheless, optimism that European finance ministers will approve a new bailout package for Greece on Monday helped to keep traders from doing much profit taking.

The markets largely shrugged off a report from the Labor Department showing that its consumer price index rose by 0.2 percent in January after coming in unchanged in the previous month. Economists had expected an increase of 0.3 percent. Excluding food and energy prices, the core consumer price index also rose by 0.2 percent in January after edging up by 0.1 percent in December - in line with economist estimates.

A separate report from the Conference Board showed that its index of leading economic indicators increased for the fourth consecutive month in January. The leading economic index rose by 0.4 percent in January following a revised 0.5 percent increase in December. Economists had been expecting the index to increase by 0.5 percent compared to the 0.4 percent increase originally reported for the previous month.

Among individual stocks, food maker H.J. Heinz (HNZ) rose by 4.6 percent after reporting stronger than expected third quarter earnings and narrowing its full year earnings outlook. Meanwhile, shares of Nordstrom (JWN) fell by 2 percent after the upscale department store operator reported better than expected fourth quarter earnings but forecast full year 2012 earnings below analyst estimates.

The major averages ended the session mixed, with the tech-heavy NASDAQ posting a loss of 8.07 points or 0.3 percent to finish at 2,951.78. The Dow climbed 45.79 points or 0.4 percent to 12,989.87 and the S&P 500 edged up 3.19 points or 0.2 percent to 1,361.23. The major averages all moved higher for the week. The Dow rose by 1.2 percent to its best closing level in well over three years, while the NASDAQ and the S&P 500 advanced 1.6 percent and 1.4 percent, respectively.

In economic news, Thailand is scheduled to release a raft of data on Monday, including Q4 numbers for GDP, as well as January numbers for imports, exports and trade balance. GDP is expected to contract 5.0 percent on year following the 3.5 percent increase in the third quarter. Imports are expected to rise 5.8 percent on year following the 19.1 percent surge in December. Exports are called higher by 0.6 percent on year after easing 2.0 percent in the previous month. The trade balance is expected to reflect a deficit of $1.905 billion after posting a shortfall of $2.130 billion a month earlier.

by RTTNews Staff Writer

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