The Thai stock market on Thursday finally halted the four-day slide in which it had plummeted more than 60 points or 5.8 percent. The Stock Exchange of Thailand settled just above the 1,125-point plateau, and now analysts are predicting continued support at the opening of trade on Friday.
The global forecast for the Asian markets is cautiously optimistic, thanks to good news from Europe that was somewhat conditional. Wednesday's EU summit resulted in the clear message that their leaders want Greece to remain in the euro area - but German Chancellor Angela Merkel reinforced her opposition to the idea of issuing eurobonds at the summit. The European markets were higher and the U.S. bourses were mixed but little changed, and the Asian markets figure to split the difference.
The SET finished sharply higher on Thursday following solid gains from the financial shares and the energy producers.
For the day, the index climbed 15.08 points or 1.36 percent to finish at the daily high of 1,125.78 after trading as low as 1,101.59. Volume was 4.009 billion shares worth 31.093 billion baht. There were 309 gainers and 202 decliners, with 145 stocks finishing unchanged.
Among the gainers, energy giant PTT was up 1.62 percent, while PTT Global Chemicals jumped 3.18 percent, PTT Exploration and Production spiked 3.63 percent, coal miner Banpu added 1.29 percent, Bangkok Bank climbed 3.42 percent, Kasikornbank collected 3.12 percent and Siam Commercial Bank gathered 2.21 percent.
Wall Street provides little clarity as stocks showed a lack of direction on Thursday, as traders seemed reluctant to make any significant moves. The choppy trading came after the markets saw considerable volatility over the course of the two previous sessions.
While some analysts have described the markets as oversold in light of the recent weakness, traders appear reluctant to go bargain hunting amid continued concerns about the financial situation in Europe.
European leaders have voiced their strong desire for Greece to remain in the eurozone and honor its commitments under previously agreed bailout deals that require the implementation of reforms and unpopular austerity measures. There are also hopes that the new Greek government that emerges from next month's general elections will implement the reforms and measures needed to bring the crisis-hit nation back on the road to progress.
Traders also digested some uninspiring U.S. economic data as the Commerce Department reported that orders for non-defense capital goods excluding aircraft, which are seen as an indicator of capital spending, fell by 1.9 percent in April following a 2.2 percent drop in March. The data was included in the report on durable goods orders in April, which showed a mild increase in orders amid a rebound in transportation equipment orders.
A separate report from the Labor Department showed a modest decrease in initial jobless claims in the week ended May 19. Jobless claims edged down to 370,000 from the previous week's revised figure of 372,000.
Among individual stocks, Hewlett-Packard (HPQ) rose by 3.3 percent after reporting better than expected second quarter results and raising its full year adjusted earnings guidance. Shares of Pandora Media (P) also showed a strong upward move after the online radio service reported a narrower than expected first quarter loss and provided upbeat guidance.
Meanwhile, shares of Tiffany (TIF) came under pressure after the luxury goods retailer reported weaker than expected first quarter earnings and slashed its full year guidance.
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