STOCKS : SET ready to test 700

NUNTAWUN POLKUAMDEE

The Stock Exchange of Thailand index should break the 700-point barrier next week as foreign investors continue to jump into the market, according to local analysts. The SET index yesterday gained 3.99 points to close at 695.27 on trade worth 17.79 billion baht.

Foreign investors, net buyers of 3.4 billion baht worth of stocks in Thursday's 2.36% rally, had a net buy position yesterday of 3.95 billion baht. Banks led trade, rising 0.74%, with energy stocks gaining 0.65%. Property stocks dropped 0.32%.

Patareeya Benjapolchai, the SET president, said investor confidence had risen on expectations of eased interest rates and additional public spending, including in the new infrastructure megaprojects.

The cabinet on Tuesday approved five new mass transit lines for Bangkok.

''If the government can spend the funds for the megaprojects and shows progress in the construction of new infrastructure, and the central bank eases its capital controls on foreign inflows, I'm quite confident that we will see the SET index reach 730 shortly,'' Mrs Patareeya said.

Siriluck Pakotiprapha, the research head at Merchant Partners Securities, said foreigners were likely to remain net buyers of Thai stocks through next week.

''But we will see quite strong resistance around the 700-point line, and could see some profit-taking next week,'' she added.

Banks offered continued upside gain, thanks to expectations of rising interest margins later this year.

Bangkok Post
Sunday February 11, 2007