2/14/2012 9:16 PM ET
(RTTNews) – The Thai stock market has closed lower now in two of three trading days since the end of the three-day winning streak in which it had collected more than 20 points or 2 percent. The Stock Exchange of Thailand settled just above the 1,105-point plateau, and now analysts are forecasting renewed support for the market when it opens on Wednesday.
The global forecast for the Asian markets is cautiously optimistic following reports that Greece is expected to commit to its international lenders later today. Soft retail sales data from the United States may cap the upside, however. Technology stocks may rise on bargain hunting, although steel and gold shares could remain soft. The European and U.S. markets were mixed and little changed, and the Asian bourses are tipped to move slightly higher.
The SET finished sharply lower on Tuesday following heavy losses among the energy producers – although the financial stocks provided support.
For the day, the index dropped 10.99 points or 0.98 percent to finish at 1,106.41 after trading between 1,102.77 and 1,121.70. Volume was 5.566 billion shares worth 41.964 billion baht. There were 404 decliners and 127 gainers, with 125 stocks finishing unchanged.
Among the actives, energy giant PTT was down 2.31 percent, while PTT Global Chemicals plunged 2.75 percent, coal miner Banpu shed 1.57 percent, Kasikornbank collected 2.96 percent, Bangkok Bank added 1.53 percent and Siam Commercial Bank climbed 2.36 percent.
The lead from Wall Street provides little clarity as stocks maintained a negative bias throughout much of Tuesday, although the latest news out of Greece contributed to a substantial recovery in the final minutes of trading. The major averages bounced off their lows to end the session nearly flat.
The late day rally followed reports that Greek conservative party leader Antonis Samaras will deliver a letter of commitment to the country’s international lenders Wednesday morning. Samaras, who will likely become Greece’s next prime minister after April elections, had previously indicated that he would want the Greek bailouts to be renegotiated if he were elected.
The report followed news that Eurogroup President Jean-Claude Juncker delayed a decision on a new bailout for Greece amid lingering uncertainty about the implementation of the austerity package that the Greek parliament passed over the weekend. Juncker said that the Eurozone finance ministers will hold a conference call on Wednesday instead of meeting in Brussels.
The early weakness followed news that Moody’s cut the debt ratings of six European countries, including Italy, Spain and Portugal, and warned it could cut the triple-A ratings of France, Britain and Austria. The ratings agency attributed the actions to what it sees as Europe’s weakening ability to implement austerity programs and reforms.
