Bangkok--11 Oct--Phillip
Market Trend: Sideways up seen but risk of consolidation persists
Foreign buying interest remained strong, leading Thailand’s benchmark stock index higher 7.5 points yesterday. Other local factors appear to remain largely unchanged. Today, the energy sector should still benefit from the steady rise in global oil prices, in our view. Following the recent market run-up, upside gain in several stocks has now narrowed. Caution should therefore apply for short-term buying. Under this circumstance, Selective BUY should still remain in focus. We also expect the market to trade in a narrow band while awaiting fresh market-moving factor. The risks of consolidation still persist.
Resistance: 880-885 Support: 867-862
FACTORS AFFECTING THE MARKET:
+ NYMEX crude for Nov delivery rose US$1.04 on Wednesday, boosted by oil production problems in Alaska and growing tensions between Turkey and Iraq, while the White House warned Turkey not to send troops into the north of Iraq.
+ Foreign investors continued their buying spree in Thai shares worth Bt1.87b yesterday.
- DJIA added to losses on Wednesday, falling 85.84 points after pane maker Boeing Co., announced a 6-month delay in initial deliveries of its 787 Deramliner aircraft and earnings warnings by various listed companies. Meanwhile, NASDAQ rose slightly with Costco Wholesale Corp rose to a new high following release of strong earnings.
- The Energy Ministry expected Ft rate for Feb-May 2008 to rise by 7 satangs per unit owing to rising gas price and 10-day annual maintenance shutdown of the Myanmar project thereby leading to a loss of 1,000m cu.ft per day from the system.
0 The Bank of Thailand’s Monetary Policy Committee kept its key policy rate unchanged at 3.25% as widely expected by the market, citing signs of increased inflationary pressure and the likelihood of the lingering fallout from a global credit crunch on the Thai economy.