Thai Stocks: Resistance Expected At 1,650 Points

The Thai stock market bounced higher again on Monday, one session after ending the six-day winning streak in which it had gathered more than 20 points or 1.3 percent. The Stock Exchange of Thailand now rests just beneath the 1,650-point plateau although it's likely to head south again on Tuesday.

The global forecast for the Asian markets is mixed to lower, with technology stocks expected to weigh - although support from crude oil prices should limit the downside. The European and U.S. markets were mixed and the Asian bourses figure to follow suit.

The SET finished modestly higher on Monday following huge gains from the communications companies, while the financials and energy producers were mixed.

For the day, the index rose 4.48 points or 0.27 percent to finish at 1,649.54 after trading between 1,645.09 and 1,653.33. Volume was 28.405 billion shares worth 94.488 billion baht. There were 989 decliners and 775 gainers, with 485 stocks finishing unchanged.

Among the actives, Advanced Info surged 6.63 percent, while Bangkok Bank climbed 1.20 percent, Bangkok Dusit Medical shed 0.41 percent, Bangkok Expressway added 0.56 percent, BTS Group gained 0.52 percent, CP All Public skidded 1.15 percent, Total Access Communications skyrocketed 9.09 percent, Gulf jumped 1.82 percent, IRPC retreated 1.01 percent, Kasikornbank collected 0.34 percent, Krung Thai Bank dropped 0.85 percent, Krung Thai Card slid 0.43 percent, PTT Oil & Retail sank 0.93 percent, PTT declined 1.32 percent, PTT Exploration and Production slumped 1.26 percent, PTT Global Chemical surrendered 1.65 percent, SCG Packaging rose 0.39 percent, Siam Commercial Bank advanced 1.17 percent, Siam Concrete fell 0.51 percent, True Corporation exploded for 10.19 percent and TTB Bank, Thailand Airport and Charoen Pokphand Foods were unchanged.

The lead from Wall Street is not encouraging as the major averages opened higher on Monday but tumbled late in the day, with only the Dow managing to barely hang on to positive territory.

The Dow rose 17.27 points or 0.05 percent to finish at 35,619.25, while the NASDAQ plunged 202.68 points or 1.26 percent to close at 15,854.76 and the S&P fell 15.02 points or 0.32 percent to end at 4,682.94.

The mixed close on Wall Street came after President Joe Biden announced his intent to nominate Jerome Powell for a second term as Federal Reserve Chair. The White House also revealed that Biden intends to nominate current Fed Governor Lael Brainard as Vice Chair of the Federal Reserve System.

While the re-nomination of Powell will give the Fed stability as it grapples with the economic recovery and elevated inflation, Brainard was seen as the more dovish choice.

Crude oil futures settled higher Monday despite rising concerns about the outlook for energy demand due to a surge in coronavirus cases in several countries. West Texas Intermediate Crude oil futures for December rose $0.81 or 1.1 percent at $76.75 a barrel.

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