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Thai Stock Market Expected To Remain Rangebound

The Thai stock market on Tuesday ended the five-day losing streak in which it had stumbled more than 60 points or 3.9 percent. The Stock Exchange of Thailand now sits just above the 1,620-point plateau and it's likely to see little movement on Wednesday.

The global forecast for the Asian markets is mostly higher, with bargain hunting limited by concerns about economic growth and interest rates. The European markets were up and the U.S. bourses were mixed and the Asian markets figure to split the difference.

The SET finished sharply higher on Tuesday following gains from the financial shares and the energy producers.

For the day, the index jumped 18.29 points or 1.14 percent to finish at 1,622.78 after trading between 1,592.64 and 1,622.82. Volume was 24.361 billion shares worth 83.382 billion baht. There were 1,114 gainers and 720 decliners, with 389 stocks finishing unchanged.

Among the actives, Advanced Info soared 3.90 percent, while Thailand Airport improved 1.13 percent, Banpu plunged 3.20 percent, Bangkok Bank strengthened 1.18 percent, B. Grimm skyrocketed 5.04 percent, CP All Public gained 0.78 percent, Energy Absolute added 0.60 percent, Gulf climbed 1.09 percent, IRPC skidded 1.17 percent, Kasikornbank collected 0.34 percent, Krung Thai Bank surged 3.42 percent, Krung Thai Card increased 1.31 percent, PTT Exploration and Production tumbled 1.94 percent, PTT Global Chemical jumped 2.17 percent, Siam Commercial Bank rallied 2.26 percent, True Corporation spiked 3.27 percent, TTB Bank accelerated 1.55 percent and PTT and PTT Oil & Retail were unchanged.

The lead from Wall Street is murky as the major averages spent most of Tuesday bouncing back and forth across the unchanged line before finally settling on opposite sides.

The Dow shed 84.96 points or 0.26 percent to finish at 32,160.74, while the NASDAQ jumped 114.42 points or 0.98 percent to end at 11,737.67 and the S&P 500 added 9.81 points or 0.25 percent to close at 4,001.05.

The volatility came as traders continued to debate whether the markets have reached their bottom following the recent sell-off.

Bargain hunting contributed to early strength on Wall Street as some traders looked to pick up stocks at reduced levels. Buying interest waned over the course of the morning, however, as traders were wary about inflation, higher interest rates and the outlook for the global economy.

Stocks continued to fluctuate over the course of the session as traders looked ahead to the release of key inflation data in the coming days. The latest snapshot of inflation could impact expectations regarding how aggressively the Federal Reserve plans to raise interest rates.

Crude oil prices fell sharply on Tuesday, extending losses from the previous session amid concerns over a likely drop in energy demand. A stronger dollar weighed as well on oil prices. West Texas Intermediate Crude oil futures for June ended lower by $3.33 or 3.2 percent at $99.76 a barrel, a two-week low.

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