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Thai Bourse: Resistance Expected At 1,300 Points

The Thai stock market has climbed higher in back-to-back trading days, gathering more than 20 points or 1.6 percent along the way. The Stock Exchange of Thailand now sits just beneath the 1,295-point plateau although it may run out of steam on Thursday.

The global forecast for the Asian markets is mixed to lower after the Federal Reserve downgraded its GDP forecast. The European markets were mixed and the U.S. bourses were mostly in the red and the Asian markets also figure to open lower.

The SET finished modestly higher on Wednesday as gains from the energy producers were capped by weakness from the financial sector.

For the day, the index gained 7.30 points or 0.57 percent to finish at 1,293.48 after trading between 1,284.09 and 1,295.80. Volume was 16.833 billion shares worth 52.708 billion baht. There were 751 decliners and 667 gainers, with 480 stocks finishing unchanged.

Among the actives, Advanced Info added 0.28 percent, while Thailand Airport soared 3.36 percent, Asset World climbed 1.02 percent, Bangkok Bank plunged 3.38 percent, Bangkok Dusit Medical jumped 1.46 percent, Bangkok Expressway skidded 1.10 percent, BTS Group advanced 0.99 percent, Charoen Pokphand Foods spiked 1.67 percent, Kasikornbank tumbled 1.54 percent, Krung Thai Bank tanked 2.13 percent, PTT Exploration and Production rallied 1.75 percent, PTT Global Chemical gained 0.58 percent, Siam Commercial Bank retreated 1.79 percent, TMB Bank sank 1.10 percent and PTT and Siam Concrete were unchanged.

The lead from Wall Street suggests consolidation as stocks were unable to hold early gains on Wednesday, slipping mostly into the red in the final hour of trade.

The Dow added 36.78 points or 0.13 percent to finish at 28,032.38, while the NASDAQ plunged 139.86 points or 1.25 percent to end at 11,050.47 and the S&P 500 fell 15.71 points or 0.46 percent to close at 3,385.49.

The late-day pullback came despite a dovish monetary policy announcement by the Fed, with the central bank leaving interest rates unchanged and signaling rates are likely to remain at near-zero levels for years to come.

But the Fed also downwardly revised its estimates for GDP growth in 2021 and 2022 to 4.0 percent and 3.0 percent, respectively. GDP growth in 2023 was forecast at 2.5 percent.

The sharp drop by the NASDAQ came as big-name tech companies like Apple (AAPL), Facebook (FB), Netflix (NFLX) and Amazon (AMZN) gave ground after solid gains a day earlier.

In economic news, the Commerce Department noted a slowdown in the pace of retail sales growth in August. Also, the National Association of Home Builders said homebuilder confidence jumped to a record high in September.

Crude oil prices rose sharply on Wednesday, extending gains from the previous session after data showed an unexpected drop in U.S. crude inventories last week. West Texas Intermediate Crude oil futures for December ended up $1.88 or 4.9 percent at $40.16 a barrel.

Closer to home, Thailand will release August figures for new car sales later today; in July, sales tumbled 24.8 percent on year.

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