Thai stocks may edge up, banks eyed after rate cut

BANGKOK, Dec 4 (Reuters) - Thai stocks are likely to edge
up on Thursday, helped by a rally on Wall Street and a big Thai
interest rate cut on Wednesday, but trade will be thin ahead of
a long holiday weekend and the election of a new prime
minister.

Banks .SETB may be in demand as they will benefit from
lower funding costs after the Bank of Thailand slashed its main
interest rate by a full point to 2.75 percent to help an
economy battered by political unrest and the global downturn.
[nBKK4059888]

"Trading volume should be thin and the rise should not
exceed five points as it's unclear who will be the the new
prime minister, which will keep investors on the sidelines,"
Tisco Securities strategist Viwat Techapoonpol said.

Parliament is due to vote for a new prime minister on
Monday after Somchai Wongsawat had to step down when the
Constitutional Court disbanded his party for electoral fraud
and banned its leaders from politics.

On Wednesday the benchmark SET index rebounded 1.45 percent
to 392.92 after the end of an eight-day siege of Bangkok's main
airport by anti-government protesters and the official rate
cut.

Resistance on the main index .SETI is expected at 398-401
and support at 388-390, Viwat added.

Click [TH/TRADING01] for cumulative trading value by
investor type. ----------------------MARKET SNAPSHOT @ 0155 GMT
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INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 870.74 2.58% 21.930
USD/JPY JPY= 93.35 0.05% 0.050
10-YR US TSY YLD US10YT=RR 2.6688 -- 0.014
SPOT GOLD XAU= 771.5 -0.14% -1.100
US CRUDE CLc1 46.58 -0.45% -0.220
DOW JONES .DJI 8591.69 2.05% 172.60
ASIA ADRS .BKAS 84.99 0.95% 0.80
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MARKET SUMMARY > Oil dips as demand crumbles

[O/R] > Wall St jumps on Coke and other defensive
plays [.N] > Dollar little changed; ECB, BOE rate
meetings ahead [USD/] > TREASURIES-Price rise on weak
business, employment data [US/] > Gold bounces on steadier oil,
euro [GOL/] > TAKE A LOOK-Thailand's
Political Crisis [nSP258694]

STOCKS AND FACTORS TO WATCH

- The Bank of Thailand slashed interest rates to help an
economy battered by political unrest and the global downturn
[nBKK4059888]

- Somboon Advance Technology SAT.BK

The auto parts producer said it expected sales to grow 15
percent to 5.8 billion baht this year, but it expected 2009
sales to drop 15-20 percent, following a contraction in the
auto industry.

- Eastern Water Resources EASW.BK

Thailand's biggest industrial water supplier said it
expected a rise in 2009 revenue, helped by higher water prices,
although water demand is seen lower.

- A week-long siege of Bangkok's main airports is over, but
it will take much longer for Thailand to regain investors'
confidence as political uncertainty adds to the gloom cast by a
global economic slowdown. [nBKK127392]

- For the Thai press digest click on [ID:nBKK211222]

- 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=35.58 Baht)
(Reporting by Arada Therdthammakun; Editing by Alan Raybould)