The Thai stock market on Tuesday wrote a finish to the four-day losing streak in which it had declined more than 30 points or 3 percent. The Stock Exchange of Thailand finished just above the 1,010-point plateau, and now investors are anticipating a further recovery for the market when it opens on Wednesday.
The global forecast for the Asian markets is positive, although any movements may be exacerbated by light volume ahead of the holidays, while the easing of tensions on the Korean peninsula adds to the sentiment. Steel stocks are likely to provide support, as are financials and technology shares. The European and U.S. markets finished higher on Tuesday, and the Asian bourses are expected to follow suit.
The SET finished modestly higher on Tuesday, thanks to bargain hunting among the energy stocks.
For the day, the index added 6.68 points or 0.66 percent to finish at 1,013.19 after trading between 1,002.07 and 1,014.67. Volume was 3.501 billion shares worth 20.766 billion baht. There were 201 gainers and 157 decliners, with 152 stocks finishing unchanged.
Among the actives, energy giant PTT was up 1.57 percent, while PTT Aromatic added 0.69 percent, PTT Chemical gained 0.35 percent and coal producer Banpu shed 1.02 percent.
The lead from Wall Street is cautiously optimistic as stocks were able to post solid gains on Tuesday, with buying interest partly driven by optimism regarding the potential of U.S. economic growth in 2011. Market participation was limited as many stayed away from their desks ahead of the holiday weekend.
Corporate news drove some of the day's moves amid the absence of market moving economic reports.
Canadian lender Toronto-Dominion Bank (TD) closed higher after announcing a deal with Cerberus Capital Management to acquire auto lender Chrysler Financial for about $6.3 billion in cash. TD expects the acquisition to close in the second quarter of its fiscal 2011. Shares of Toronto-Dominion bounced off of the four-month low set on Monday.
Nutritional products firm Martek Biosciences Corp. (MATK) also rose after signing an agreement to be acquired by Royal DSM, a Netherlands-based life sciences and materials sciences company, for $31.50 per share in cash. The total deal is worth approximately $1.09 billion. Martek jumped to a two-year closing high on the news.
Cliffs Natural (CLF) also moved to the upside on news that it has received Australian Commonwealth and State government approval for developing new deposits at its iron ore reserves in Western Australia. Shares moved up to their best close in two years.
Jabil Circuit (JBL) advanced to its best closing price in three years after forecasting second quarter earnings and revenues in ranges that were above analyst expectations.
Meanwhile, Darden Restaurants (DRI) sank to a six-week closing lower as sales at restaurants open for at least a year fell short of expectations for the second quarter.
The major averages came off of their best levels late in the day but still finished firmly in positive territory. The Dow climbed by 55.03 points or 0.5 percent to 11,533.16, the NASDAQ advanced by 18.05 points or 0.7 percent to 2,667.61 and the S&P 500 rose by 7.52 points or 0.6 percent to 1,254.60.
On the political scene, the state of emergency imposed eight months ago in the Thai capital to quell violent anti-government protests will be lifted on Wednesday, as political and security atmosphere improved in Bangkok. Anti-government protesters are now holding regular rallies in Bangkok without posing any security threat, which prompted the government to lift emergency rules, reports say.
Emergency was enforced in Bangkok and 23 nearby provinces after anti-government demonstrators stormed the country's Parliament on April 7. The 'Red Shirt' leaders called off months-long violent protests on May 19 after a military crackdown killed several protesters and wounded many, including foreigners.
The government has been gradually lifting the state of emergency in provinces considering improved situation there.
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