Thai stocks set to fall further, seen as overbought

BANGKOK, Sept 8 (Reuters) - Thai stocks are expected to
fall for a second session on Wednesday because of broad
weaknesses in other Asian markets and Wall Street's fall
overnight, with investors turning cautious in overbought
regional markets.

"The Thai market should continue in a consolidation phase
today. There's no fresh domestic leads to push the market up
further and external factors have become weaker," said Parin
Kitchaotornpitak, senior analyst at Far East Securities.

Asian stocks fell in early trade as global markets weakened
on concerns over the economic outlook and the health of
European banks.

On Tuesday, Thailand's benchmark stock index .SETI ended
down 0.82 percent at 923.89, ending an eight-day winning
streak.

Far East's Parin pegged support for the main index at 920
and 915.

The SET index's 14-day relative strength index (RSI) was at
75.05 at the close on Tuesday. An RSI level of 70 and higher
indicates the market is overbought.

The market was weighed down by losses in big energy and
petrochemical shares, with top energy firm PTT Pcl PTT.BK,
which went ex-dividend, and industrial conglomerate Siam Cement
Pcl SCC.BK both falling over 3 percent.

Analysts said the shares may have been unsettled by reports
that local residents were not happy with a court ruling last
week that lifted a ban on most of the projects that had been
halted by environmental concerns at the huge Map Ta Phut
industrial estate.

They have threatened a blockade of the estate on Sept. 30.

Thailand, Asia's third-best performer this year, saw $424
million of inflows over seven sessions to Monday but foreign
investors were net sellers of $16.4 million of stock on
Tuesday.

Click [TH/TRADING01] for cumulative trading value by
investor type. ----------------------MARKET SNAPSHOT @ 0124 GMT
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INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1091.84 -1.15% -12.670
USD/JPY JPY= 83.64 -0.19% -0.160
10-YR US TSY YLD US10YT=RR 2.5944 -- -0.004
SPOT GOLD XAU= 1256.8 0.30% 3.700
US CRUDE CLc1 73.7 -0.53% -0.390
DOW JONES .DJI 10340.69 -1.03% -107.24
ASIA ADRS .BKAS 121.75 -0.73% -0.90
-------------------------------------------------------------
MARKET SUMMARY >NYMEX-Crude falls as investors offload risk

[O/R] >US STOCKS-Market falls amid European bank
worries [.N] >FOREX-Euro rattled by bank scare, yen
eyes new highs [USD/] >Europe worries, strong US auction
boost govt bonds [US/] >PRECIOUS-Gold rises on bank
scare; holds near 2-month high[GOL/]

STOCKS AND FACTORS TO WATCH

- Fitch Ratings (Thailand) has upgraded the ratings of
Thanachart Bank Pcl (TBANK), Thanachart Capital Pcl TCAP.BK,
and Siam City Bank Pcl SCIB.BK(SCIB) and removed them from
Rating Watch Positive (RWP) following TBANK's acquisition of
SCIB in the second quarter of 2010. [ID:nWLA2337]

- Thailand expects to draw at least 14.5 million foreign
tourists this year, up from 14.15 million in 2009, as the
industry has recovered quickly from recent political violence
in Bangkok, the state tourism agency said on Tuesday.
[ID:nSGE6860CQ]

- Thai-listed firms posted net profits of 126.22 billion
baht ($4.05 billion) in the second quarter of 2010, almost
unchanged from last year but down from the first quarter as
political unrest affected service groups, the exchange said.

However, a continuous rise in revenue for the past five
quarters, a rise in the proportion of companies recording net
profits and increasing investment in assets showed that
operating performances had expanded in line with the economic
recovery.

- 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=31.17 baht)
(Reporting by Viparat Jantraprap and Wilawan Pongpitak;
Editing by Alan Raybould)