Thai shares seen higher, but politics weigh

BANGKOK, Oct 17 (Reuters) - Thai shares were expected to
open higher on Friday after Wall Street rallied overnight, but
domestic political uncertainty would weigh on sentiment,
dealers said.

Army chief Anupong Paochinda said on Thursday the prime
minister should have stepped down to take responsibility for
bloody clashes between police and protesters last week.

But Anupong also said he was not about to launch a coup.
[ID:nSP373347]

Thai banks .SETB were in a focus as they roll out their
third quarter earnings, with fourth-ranked Kasikornbank
KBAN.BK due to report its results after the market close.

"The market should climb, but we expect some profit-taking
during the day. More foreign selling is possible due to doubts
about our government's stability," Adkinson Securities
strategist Ronnakit Sarinwongse said.

Resistance on the benchmark SET index .SETI was expected
at 490 and support at 470, Ronnakit said.

On Thursday, the main index extended its recent falls,
closing down 0.78 percent at 477.73, weighed down by losses in
energy index heavyweights .SETEN and bank shares .SETB.

Click [TH/TRADING01] for cumulative trading value by
investor type. ------------------------MARKET SNAPSHOT @ 0146
GMT ------------

INSTRUMENT LAST PCT CHG NET
CHG
S&P 500 .SPX 946.43 4.25%
38.590
USD/JPY JPY= 101.6 -0.05%
-0.050
10-YR US TSY YLD US10YT=RR 3.9415 --
-0.029
SPOT GOLD XAU= 806.35 0.23%
1.850
US CRUDE CLc1 72.87 4.32%
3.020
DOW JONES .DJI 8979.26 4.68%
401.35
ASIA ADRS .BKAS 97.25 3.67% 3.44
---------------------------------------------------------------
MARKET SUMMARY >TOPWRAP 14-Recession looms despite global
intervent [nN16398067] >UPDATE 1-Oil prices rise more than $3
on stronger equities [O/R] >Market ends sharply higher on
bargain hunting, oil [.N] >FOREX-Dollar retreats as
stock gains trim safety demand [USD/] >TREASURIES-Supply
worries knock down T-bills, long bonds [US/] >Gold eases near
1-month low after commodities tumble [GOL/]

STOCKS AND FACTORS TO WATCH

- Samart Corporation PCL SAMA.BK

Telecom firm said it would pay an interim dividend of 0.10
baht ($0.292) per share on Nov. 11 and planned to spend up to
250 million baht to buy 5 percent of its own shares from the
market in the six months starting from Oct. 31.

- Bangkok Bank BBL.BK

Thailand's biggest lender said it did not expect to set
aside provisions for its $10 million loan to troubled
FerroChina (FERR.SI). The loan accounts for 0.03 percent of its
total lending of $32.4 billion.

- The Bank of Thailand will release its quarterly outlook
for inflation and economic growth for 2008-2009 at around 0730
GMT.

- American Axle & Manufacturing Holdings Inc (AXL.N) said
it planned to invest $40 million to build its first plant in
Thailand as part of its drive to expand production in Asia.
[ID:nBKK359631]

- For the Thai press digest click on [ID:nBKK380111]

- 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= 34.23 Baht)
(Reporting by Ploy Chitsomboon; Editing by Darren Schuettler)