BANGKOK, Aug 24 (Reuters) - Thai stocks are expected to edge up on Monday, cheered by gains on overseas markets after U.S. stocks hit highs for the year on optimism about the economic recovery, analysts said.
In Thailand itself, investors will focus on second-quarter GDP data due at 0230 GMT before the market opens.
Finance Minister Korn Chatikavanij told Reuters on Aug. 20 that the economy had grown by an estimated 2.0 percent in the second quarter from the previous three months, meaning it had pulled out of recession. [ID:nBKK230149]
"The market should swing up, following the global market trend. But the rise may have limitations because of valuations and pressure from domestic politics," said Therdsak Taveeteeratham, an analyst at Asia Plus Securities.
The index is now trading at a price-to-earnings ratio of 12 times, he added, saying the level could prompt profit-taking.
"It can go up further if we have support from fund inflows. But I don't see any significant buying as long as investors are wary of our political situation," he said.
The United Front for Democracy against Dictatorship (UDD), which supports former Prime Minister Thaksin Shinawatra, said on Friday it would hold a rally at Government House on Aug. 30. [ID:nBKK533700]. Its three-week blockade of Government House in April led to Thailand's worst street violence in 17 years.
Resistance on the main index .SETI is expected at 655 and 660 and support at 640, Therdsak added.
On Friday, the benchmark index rose 0.57 percent to a one-week closing high of 644.63, buoyed by buying of energy and banking shares.
Click [TH/TRADING01] for cumulative trading value by investor type. ----------------------MARKET SNAPSHOT @ 0112 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG S&P 500 .SPX 1026.13 1.86% 18.760 USD/JPY JPY= 94.63 0.26% 0.250 10-YR US TSY YLD US10YT=RR 3.5799 -- 0.011 SPOT GOLD XAU= 953 0.04% 0.350 US CRUDE CLc1 74.27 0.51% 0.390 DOW JONES .DJI 9505.96 1.67% 155.91 ASIA ADRS .BKAS 120.80 0.23% 0.28 ------------------------------------------------------------- MARKET SUMMARY > NYMEX-Oil steadies around $74, recovery hopes support [O/R] > US STOCKS-Wall St ends at new highs for the year [.N] > FOREX-Yen out of favour on recovery optimism
[USD/] > TREASURIES-Bonds sell off on housing glimmers, Bernanke[US/] > PRECIOUS-Gold steady above $950/oz, eyes on dollar [GOL/]
STOCKS AND FACTORS TO WATCH
- PTT Exploration and Production PTTE.BK
The company reported oil and gas spills at a drilling well in the Australian Montara field, which had forced it to evacuate 69 staff from the area. [ID:nBKK538972] and [nSYD524758]
- Khon Kaen Sugar (KSL.BK)
Thailand's fourth-biggest sugar miller told Reuters it aimed for 2009/10 net profit growth of at least 10 percent, above analysts' forecasts, boosted by higher output and prices. [ID:nBKK366872]
- Siam City Bank SCIB.BK
Thai Finance Minister Korn Chatikavanij said he expected to give his approval this month for the Bank of Thailand to go ahead with its planned sale of a stake in Siam City Bank (SCIB). [ID:nBKK537604]
- Foreign investors are wading back into Thailand despite a three-year political crisis, stoking stock and currency gains, but economists say political unrest will limit how fast and how far Thailand pulls out of recession. [ID:nBKK495882]
- 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=34.01 Baht) (Reporting by Arada Kultawanich; Editing by Alan Raybould)