Thai stocks seen down on inflation, political worries

BANGKOK, June 3 (Reuters) - Thai stocks, already clouded by
domestic political concerns, are expected to extend their fall
on Tuesday from a 10-month low after inflation in May surged to
near a decade high, analysts said.

The much-higher-than-expected 7.6 percent jump in
inflation, which was released after the market closed, could
pile more pressure on the central bank to raise interest rates
at its next policy meeting. [ID:nBKK311120]

Political jitters caused by the recent anti-government
street protests are also likely to dent sentiment, although
army chiefs have said the military would not intervene.
[ID:nBKK326092]

"The index will edge down again. Apart from the political
issue, inflation is causing worries about economic growth in
the second quarter," Siam City Securities analyst Sukit
Udomsirikul said.

Support on the main index should come at 785-800 points, he
added.

On Monday, the benchmark SET index .SETI slid 2.81
percent to 810.22 points, its lowest since March 24, after
tense weekend protests rekindled fears of political stability
and led foreign investors to dump the stocks for the sixth
straight day.

They have sold Thai shares worth a net 16.2 billion baht
($498 million) so far this year. Click [TH/TRADING01] for
cumulative trading value by investor type.
----------------------MARKET SNAPSHOT @ 0102 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 1385.67 -1.05% -14.710
USD/JPY JPY= 104.4 -0.01% -0.010
10-YR US TSY YLD US10YT=RR 3.9745 -- 0.008
SPOT GOLD XAU= 891.5 0.22% 2.000
US CRUDE CLc1 127.6 -0.13% -0.160
DOW JONES .DJI 12503.82 -1.06% -134.50
ASIA ADRS .BKAS 164.56 0.35% 0.58
-------------------------------------------------------------
MARKET SUMMARY > Oil rises as hurricane season start rallies
natgas [O/R] > Credit concerns flare up, sending Wall St
lower [.N] > Yen rallies as S&P cuts US financial firms
ratings [USD/] > Bonds climb in safe-haven buying as stocks
plunge [US/] > Gold ends higher as dollar wilts, oil
recovers [GOL/] > WRAPUP 2-Asia faces tough test as
inflation soars[nL02739846] > FACTBOX-Is Thailand heading for
another coup? [nBKK225327]

STOCKS AND FACTORS TO WATCH

- Electricity Generating PCL EGCO.BK

Thailand's second-largest private power firm wants to
invest more in power plants abroad, its president said as the
company seeks to boost long-term growth after being blocked
from expanding at home.

[ID:nBKK275435]

- Raising Thai interest rates would not help ease prices,
Finance Minister Surapong Suebwonglee said after data showing
inflation jumped to a near 10-year high. [ID:nBKT000676]

- PTT CHEMICAL PTTCH.BK

The state-run Board of Investment has approved investment
incentives for a 6-billion-baht power plant project planned by
Thailand's largest olefins maker on the Map Ta Phut industrial
estate in the eastern province of Rayong.

The plant has capacity of 112.5 megawatts of electricity
and 560 tonnes of steam per hour.

- For the Thai press digest click on [ID:nBKK263332]

- 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=32.55 Baht)
(Reporting by Arada Therdthammakun; Editing by Ed Cropley)