Thai stocks seen rebounding, blue chips in focus

BANGKOK, June 16 (Reuters) - Thai stocks are expected to
recover on Monday from a five-day falling streak, following
rises on other Asian markets and with investors likely to hunt
for bargains among battered blue chips, analysts said.

"The only positive factor to help boost the market is its
cheap valuation due to overselling lately. Worries of high
inflation are already factored into our market, although the
risks remain," Siam City Securities analyst Sukit Udomsirikul
said.

Thailand's annual inflation rate may reach double digits
during the third quarter of this year if oil prices stay at
current levels, the central bank said. [ID:nBKK136121]

Resistance on the main index .SETI is expected at 800
points and support at 780 points, the analysts said.

On Friday, the benchmark SET index fell 1.03 percent to
782.64 points, its lowest since Jan. 30, undermined by
inflation concerns after world oil prices surged.

Click [TH/TRADING01] for cumulative trading value by
investor type.
----------------------MARKET SNAPSHOT @ 0054 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1360.03 1.5% 20.160
USD/JPY JPY= 108.24 0.19% 0.200
10-YR US TSY YLD US10YT=RR 4.2486 -- -0.010
SPOT GOLD XAU= 871.65 0.10% 0.850
US CRUDE CLc1 134.35 -0.38% -0.510
DOW JONES .DJI 12307.35 1.37% 165.77
ASIA ADRS .BKAS 157.44 1.73% 2.68
-------------------------------------------------------------
MARKET SUMMARY > Oil edges lower as Saudi readies new output
boost [O/R] > Wall St Week Ahead: Stocks to track oil, PPI
and banks[.N] > Dollar steadies as post-G8 selling loses steam

[USD/] > Two-year yields in biggest weekly jump in 26
years [US/] > Gold extends gains on weaker U.S. dollar

[GOL/]

STOCKS AND FACTORS TO WATCH

- Somboon Advance Technology SAT.BK

The auto parts maker said it had raised its 2008 sales
growth target to 15 percent from a previous forecast of 12
percent, due to new orders from two big firms.

- Phatra Securities PHAT.BK

Thailand's second-largest broker said it had delayed a plan
to expand into Vietnam this year until 2009 due to poor
sentiment in the Vietnamese stock market.

- Finance Minister Surapong Suebwonglee said Thailand may
be facing the risk of stagflation and the government should
raise spending to make up for a fall in consumers' purchasing
power. [ID:TKN002929]

- Thailand has set a "challenging" target of 15 percent
growth in exports this year as it seeks new customers to offset
a potential slowdown in its main U.S. market, Commerce Minister
Mingkwan Sangsuwan said. [ID:nBKK102143]

- All revisions to Thailand's Foreign Business Act (FBA),
which would have brought tighter rules for outside investors,
have been scrapped, Commerce Minister Mingkwan Sangsuwan said.
[ID:nBKK277895]

- Car and truck sales in Thailand rose 6.9 percent in May
from the same month in 2007 after a 9.7 percent rise in April,
Toyota Motor Corp's (7203.T) Thai unit said on Friday.
[ID:nBKT000688]

- 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=33.22 Baht)
(Reporting by Arada Therdthammakun; Editing by Ed Cropley)