Market Trend: Hold bet on the rising trend to test key barrier at 850-860
Yesterday, Thai shares surprisingly staged a stronger-than-expected rally, up more than 9 points as end-of-quarter window-dressing helped support the market though foreign investors turned net sellers of shares worth more than Bt600m. Today, positive momentum is likely to continue while external mood is quite positive as overnight gains of nearly 100 points on Wall Street helped turn regional sentiment more bullish in this early trade. Global oil prices also rebounded to settle above the US$80/barrel mark. Near-term technical outlook has still retained a bullish view of a continued up-trend with the likelihood of moving up to test critical resistance level at 850-860. For today’s investment strategy, we recommend investors follow BUY with a focus on energy, banking, property and brokerage sectors.
Resistance: 852-860 Support: 840-836
FACTORS AFFECTING THE MARKET:
+ US stocks gained 99.50 points on Wednesday after Detroit-based automaker General Motors and the United Auto Workers settled their differences, cutting costs for GM and brokerage stocks rose on news that Bear Sterns might sell stake to Warren Buffet and other investors.
+ US light crude on the NYMEX fell in early trade following release of higher-than-expected US crude inventories but concerns over tropical depression ‘Lorenzo,’ which might disrupt oil production in the US Gulf of Mexico helped lead crude oil prices higher 77 cents to settle above US$80/barrel.
+ The World Bank and the International Financial Corporation (IFC) unveiled the ‘Doing Business 2008’ report, which ranked the countries on the ease of doing business. Thailand moved up three spots to the 15th place in this year’s rankings while Singapore retained its top spot for two consecutive years.