Thai Stock Market Likely To Extend Its Gains

The Thai stock market has finished higher in three straight sessions, gathering almost 35 points or 2.2 percent along the way. The Stock Exchange of Thailand now sits just beneath the 1,395-point plateau and it’s expected to open higher again on Tuesday.

The global forecast for the Asian markets is cautiously optimistic on hopes for an interest rate cut. The European markets were mixed and the U.S. bourses were modestly higher and the Asian markets are expected to split the difference.

The SET finished slightly higher on Monday as gains from the financials, properties and technology stocks were offset by weakness from the food and resource sectors.

For the day, the index rose 2.38 points or 0.17 percent to finish at 1,393.41 after trading between 1,383.89 and 1,396.01. Volume was 9.351 billion shares worth 30.990 billion baht. There were 261 gainers and 197 decliners, with 184 stocks finishing unchanged.

Among the actives, Advanced Info dropped 0.91 percent, while Thailand Airport slid 0.41 percent, Asset World sank 0.56 percent, Bangkok Expressway was down 1.24 percent, B. Grimm declined 0.89 percent, Charoen Pokphand Foods skidded 1.06 percent, Energy Absolute retreated 1.10 percent, Gulf stumbled 1.61 percent, Krung Thai Bank shed 0.54 percent, Krung Thai Card collected 0.54 percent, PTT Exploration and Production rose 0.34 percent, PTT Global Chemical added 0.64 percent, Siam Commercial Bank strengthened 1.49 percent, Siam Concrete fell 0.34 percent, True Corporation slumped 0.96 percent, TTB Bank lost 0.63 percent and Bangkok Bank, Kasikornbank, SCG Packaging, Banpu, PTT Oil & Retail, PTT, Thai Oil, CP All Public, Bangkok Dusit Medical and BTS Group were unchanged.

The lead from Wall Street is mostly positive as the major averages opened higher on Monday and largely stayed that way, although the Dow struggled to stay in the green.

The Dow rose 0.86 points or 0.00 percent to finish at 37,306.02, while the NASDAQ advanced 90.89 points or 0.61 percent to close at 14,904.81 and the S&P 500 gained 21.37 points or 0.45 percent to end at 4,740.56.

The major averages have moved higher for seven consecutive weeks due in part to optimism about the outlook for interest rates, with last week’s rally coming as the Federal Reserve’s latest projections hinted at three rate cuts next year.

However, several Fed officials have subsequently pushed back on investor hopes that rate cuts by the central bank are imminent. Nonetheless, CME Group’s FedWatch Tool still suggests there is a good chance the Fed will lower interest rates by a quarter point in March.

In economic news, the National Association of Home Builders released a report showing homebuilder sentiment in the U.S. rebounded in December after falling for four consecutive months.

Oil prices rose sharply on Monday on rising tensions in the Middle Ease due to recent attacks on ships crossing the Red Sea, which have raised supply concerns. West Texas Intermediate Crude oil futures for January ended higher by $1.04 or 1.44 percent at $72.47 a barrel.