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Asian Economic News
Thai Stocks Tipped Higher On Wednesday
1/6/2009 8:58 PM ET
(RTTNews) -
The Thai stock market on Tuesday saw an end to the winning streak that had hit five sessions and collected nearly 40 points or 9 percent along the way. The Stock Exchange of Thailand dipped slightly below support at 475 points, but now investors expect the market to reclaim that mark at the opening of trade on Wednesday.
The global forecast calls for modest gains for the Asian markets, thanks to continued strength among the commodities and optimism over the coming administration of U.S. President-elect Barack Obama, which is now less than two weeks away. The European markets were broadly higher, and the U.S. markets saw more modest gains - and the Asian bourses are predicted to move to the upside as well.
The SET finished modestly lower on Tuesday as profit takers ate away gains of more than 2 percent in morning trade - particularly among the energy stocks.
For the day, the index lost 5.54 points or 1.16 percent to close at 473.15. Volume was 3.44 billion shares worth 21.34 billion baht. Among the decliners, energy firm PTT was down 2.6 percent, coal miner Banpu was 0.8 percent lower and Land and Houses dipped 2 percent.
The lead from Wall Street is cautiously optimistic as stocks saw some volatility over the course of the session before ending Tuesday's trading firmly in positive territory, although well off their highs. The choppy trading came as investors responded to a mixed bag of economic news and remarks by Obama.
On the economic front, reports on service sector activity, factory orders, and pending home sales painted a mixed picture of the economy. The Institute for Supply Management said that its index of activity in the service sector rose to 40.6 in December from a record low of 37.3 in November, although a reading below 50 still indicates a contraction in the sector. Economists had expected the index to edge down to 37.0.
At the same time, the government issued its report on November factory orders, showing a decline of 4.6 percent following a revised 6.0 percent decrease in October. Factory orders were expected to decline 2.6 percent in November. Similarly, weakness was also seen in the pending home sales report that was released by the National Association of Realtors. Pending home sales fell by 4.0 percent to a record low in November, while analysts had expected pending sales to fall by a more modest 1.0 percent.
In other news, President-elect Barack Obama said Tuesday that he expects to inherit a $1 trillion federal deficit, a burden that will likely extend into the next few years. Subsequently, Obama said he and his team want to instill a "sense of responsibility" about future budget choices. That "sense of responsibility" includes a ban on all earmarks from the economic stimulus package he hopes to sign soon after he takes office on January 20th. The president-elect met with both Democrat and Republican lawmakers Monday to discuss his proposed package, aiming at a swift passage following his inauguration.
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