Thai stocks set to rise on recovery hopes, GDP data

Sun Aug 23, 2009 10:22pm EDT

 BANGKOK, Aug 24 (Reuters) - Thai stocks are expected to
edge up on Monday, cheered by gains on overseas markets after
U.S. stocks hit highs for the year on optimism about the
economic recovery, analysts said.
 In Thailand itself, investors will focus on second-quarter
GDP data due at 0230 GMT before the market opens.
 Finance Minister Korn Chatikavanij told Reuters on Aug. 20
that the economy had grown by an estimated 2.0 percent in the
second quarter from the previous three months, meaning it had
pulled out of recession. [ID:nBKK230149]
 "The market should swing up, following the global market
trend. But the rise may have limitations because of valuations
and pressure from domestic politics," said Therdsak
Taveeteeratham, an analyst at Asia Plus Securities.
 The index is now trading at a price-to-earnings ratio of 12
times, he added, saying the level could prompt profit-taking.
 "It can go up further if we have support from fund inflows.
But I don't see any significant buying as long as investors are
wary of our political situation," he said.
 The United Front for Democracy against Dictatorship (UDD),
which supports former Prime Minister Thaksin Shinawatra, said
on Friday it would hold a rally at Government House on Aug. 30.
[ID:nBKK533700]. Its three-week blockade of Government House in
April led to Thailand's worst street violence in 17 years.
 Resistance on the main index .SETI is expected at 655 and
660 and support at 640, Therdsak added.
 On Friday, the benchmark index rose 0.57 percent to a
one-week closing high of 644.63, buoyed by buying of energy and
banking shares.
 Click [TH/TRADING01] for cumulative trading value by
investor type. ----------------------MARKET SNAPSHOT @ 0112 GMT
------------
                 INSTRUMENT   LAST       PCT CHG   NET CHG
S&P 500             .SPX       1026.13      1.86%    18.760
USD/JPY             JPY=       94.63        0.26%     0.250
10-YR US TSY YLD    US10YT=RR  3.5799          --     0.011
SPOT GOLD           XAU=       953          0.04%     0.350
US CRUDE            CLc1       74.27        0.51%     0.390
DOW JONES           .DJI       9505.96      1.67%    155.91
ASIA ADRS           .BKAS      120.80       0.23%      0.28
-------------------------------------------------------------
MARKET SUMMARY > NYMEX-Oil steadies around $74, recovery hopes
support  [O/R] > US STOCKS-Wall St ends at new highs for the
year        [.N] > FOREX-Yen out of favour on recovery optimism
      [USD/] > TREASURIES-Bonds sell off on housing
glimmers, Bernanke[US/] > PRECIOUS-Gold steady above $950/oz,
eyes on dollar    [GOL/]
 STOCKS AND FACTORS TO WATCH
 - PTT Exploration and Production PTTE.BK
 The company reported oil and gas spills at a drilling well
in the Australian Montara field, which had forced it to
evacuate 69 staff from the area. [ID:nBKK538972] and
[nSYD524758]
 - Khon Kaen Sugar (KSL.BK)
 Thailand's fourth-biggest sugar miller told Reuters it
aimed for 2009/10 net profit growth of at least 10 percent,
above analysts' forecasts, boosted by higher output and prices.
[ID:nBKK366872]
 - Siam City Bank SCIB.BK
 Thai Finance Minister Korn Chatikavanij said he expected to
give his approval this month for the Bank of Thailand to go
ahead with its planned sale of a stake in Siam City Bank
(SCIB). [ID:nBKK537604]
 - Foreign investors are wading back into Thailand despite a
three-year political crisis, stoking stock and currency gains,
but economists say political unrest will limit how fast and how
far Thailand pulls out of recession. [ID:nBKK495882]
 - For the Thai press digest click on [PRESS/TH]
 - For Thailand's IPO diary click on <TH/IPOMENU>
 - For Thailand's stock exchange news click on [TH-SET]
 - For Thailand corporate earnings: [TH-RES-RTRS]
 - For Thailand economic forecast: [POLL-ECI-TH-RTRS]
 ($1=34.01 Baht)
 (Reporting by Arada Kultawanich; Editing by Alan Raybould)