The Thai stock market on Tuesday wrote a finish to the modest two-day winning streak in which it had collected more than 20 points or 1.7 percent. The Stock Exchange of Thailand ended just above the 1,270-point plateau, and now analysts are expecting to see the losses accelerate at the opening of trade on Wednesday.
The global forecast for the Asian markets is mixed with little movement and a slight downside bias. Profit taking from last week's rallies is expected to limit the upside, as well as uncertainty about the effectiveness of the Federal Reserve's recently announced third round of quantitative easing. The European and U.S. markets were slightly lower, and the Asian bourses figure to follow that lead.
The SET finished modestly lower on Tuesday following losses from the energy producers and the financial shares.
For the day, the index lost 5.68 points or 0.44 percent to finish at 1,272.86 after trading between 1,269.16 and 1,279.09. Volume was 5.549 billion shares worth 28.569 billion baht. There were 323 decliners and 222 gainers, with 165 stocks finishing unchanged.
Among the actives, energy giant PTT was down 1.17 percent, while PTT Exploration and Production plummeted 2.17 percent, PTT Global Chemicals dropped 1.92 percent, coal miner Banpu plunged 3.04 percent, Siam Concrete added 0.86 percent, Bangkok Bank shed 1.28 percent, Kasikornbank lost 1.63 percent and Siam Commercial Bank fell 1.23 percent.
The lead from Wall Street offers little clarity as stocks showed a lack of direction on Tuesday, after moving mostly lower in the previous session. While profit taking helped to drag stocks lower at the start of trading, selling pressure waned not long after the open as traders seemed reluctant to sell stocks and miss out on any further upside.
Uncertainty about the effectiveness of the Federal Reserve's recently announced third round of quantitative easing also helped to keep traders on the sidelines, contributing to the lackluster performance.
Traders largely shrugged off a report from the National Association of Home Builders showing that homebuilder confidence improved for the fifth straight month in September and reached a six-year high. The NAHB/Wells Fargo Housing Market Index rose to 40 in September from 37 in August. Economists had been expecting a reading of 38 as the index hit its highest level since coming in at 42 in June of 2006.
Among individual stocks, shares of FedEx (FDX) were down, with the delivery giant falling 3.1 percent after cutting its full-year earnings guidance. FedEx saw Q1 earnings that came in above its downwardly revised guidance but now expects full year earnings of $6.20 to $6.60 per share compared to its previous forecast for $6.90 to $7.40 per share.
Chip maker Advanced Micro Devices (AMD) also posted a notable loss after Thomas Seifert informed the company of his decision to resign as senior vice president and chief financial officer.
Meanwhile, shares of Dole (DOLE) moved higher after the food company said it has agreed to sell its worldwide packaged foods and Asia fresh produce businesses to Japanese trading company Itochu Corp. (ITOCY) for $1.7 billion in cash.
The major U.S. averages ended mixed and little changed on Tuesday. The Dow inched up 11.54 points or 0.1 percent to finish at 13,564.64, while the NASDAQ edged down 0.87 points or less than a tenth of a percent to end at 3,177.80 and the S&P 500 slipped 1.87 points or 0.1 percent to close at 1,459.32.
by RTT Staff Writer
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