Thai stocks seen range-bound; dividend plays in focus

BANGKOK: Thai stocks may move narrowly on Wednesday as fears about the euro zone's debt crisis and worries about global growth keep investors cautious, but buying in stocks with high dividend yields should lend support as the reporting season ends.

The benchmark SET index fell 0.86 percent to 1,077.02 on Tuesday as foreign selling hit big caps. The market reported 403 million baht ($13.5 million) in outflows on the day, the exchange said.

Broker Phillip Securities expect a choppy session, pegging resistance for the main index at 1,085 and 1,090, with support at 1,070 and 1,066.

"External factors will mainly weigh on sentiment. Overall, Thai stocks may be in a 'sideways' trading pattern and move in a tight range, awaiting clear market leads," said broker Phillip Securities.

Asian shares were flat on Wednesday and the euro wobbled after French and German leaders failed to deliver a solution to the euro zone debt crisis and restore investor confidence after a global market rout.

The MSCI index of Asia excluding Japan was 0.14 percent higher.

Copyright Reuters, 2011