Wednesday, May 13, 2009

Thai shares may pause after recent rally, LH eyed

BANGKOK, May 13 (Reuters) - Thai stocks are likely to take a pause from their recent rally on Wednesday now the index has
entered overbought terrain and foreign fund flows have slowed, with signs of institutional selling emerging, dealers said.
 "We should probably see consolidation in today's market after the index rose quite a bit over the past week," said Chakkrit Charoenmethachai, a senior analyst with Far East Securities.
 "The upside will be capped as we have started to see some selling by domestic institutions in particular, while fund flows also started to ease," he said, expecting support on the main index .SETI at 530 and 527 and resistance at 540 and 550.
 On Tuesday, the index closed up 1.75 percent at 544.54, extending gains into a seventh straight session, led by buying of energy shares such as PTT Aromatics PTTAR.BK, which surged 11 percent.
 Market turnover was heavy at 24.2 billion baht ($700 million) but with foreign investors selling a net 575.7 million baht.
 Among the shares to watch is Land & Houses LH.BK, the country's biggest house builder, which reported a 4.9 percent fall in first-quarter earnings as the bearish economic outlook and recent political instability deterred home buyers. [nBKK000764]
 Click [TH/TRADING01] for cumulative trading value by investor type.  ----------------------MARKET SNAPSHOT @ 0158 GMT ------------
                  INSTRUMENT   LAST       PCT CHG   NET CHG  S&P 500             .SPX       908.35       -0.1%    -0.890  USD/JPY                    96.18       -0.18%    -0.160  10-YR US TSY YLD      3.1911          --     0.013  SPOT GOLD                  925.4        0.39%     3.550  US CRUDE            CLc1       59.58        1.24%     0.730  DOW JONES           .DJI       8469.11      0.60%     50.34  ASIA ADRS           .BKAS      107.77       0.07%      0.08  -------------------------------------------------------------  MARKET SUMMARY > UPDATE 9-Oil hits 6-month high on economic recovery bets [O/R] > Pfizer, Coke lift Dow, but Nasdaq off; Intel up late     [.N] > FOREX-Dollar retreats broadly, hits 4-month low        [USD/] > TREASURIES-Holding firm on supply relief                [US/] > PRECIOUS-Gold rises 1 pct on weak dollar, US trade gap [GOL/]
 STOCKS AND FACTORS TO WATCH
 - Citigroup has raised its target price for Preuksa Real Estate PS.BK to 6 baht per share from 3 baht, citing its better outlook. [nBKK464323]
 - Samart Corp SAMA.BK
 Telecoms group Samart is confident of hitting its revenue growth target of 30 percent this year due to strong growth in its information and communications technology (ICT) business. [nBKK465312]
 - For the Thai press digest click on [PRESS/TH]
 - For Thailand's IPO diary click on 
 - 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=34.55 Baht)  (Reporting by Ploy Chitsomboon; Editing by Alan Raybould)

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