Thai shares may rise, political debate in focus

BANGKOK: Thai stocks may gain on Tuesday after a recovery in global markets, helped by general optimism about the new government's pro-growth economic policies as Prime Minister Yingluck Shinawatra opens a debate on her programme in parliament.

The benchmark SET index ended down 0.13 percent at 1,067.84 on Monday, erasing most of its early 1.6 percent fall, on late bargain-hunting in big caps, including Siam Commercial Bank, which gained 0.4 percent.

That recovery came despite news of a surprise contraction in the Thai economy in the second quarter.

Retail investors bought shares worth a net 5.4 billion baht ($181 million), offsetting net foreign selling of 5.5 billion ($184 million), the exchange said.

Broker Phillip Securities pegged resistance for the main index at 1,075 and 1,079, with support at 1,055 and 1,050.

"It could be a choppy session with a positive bias for the market, in line with global stocks ... Investors will monitor the government's elaboration of its policies, which could lead to speculative buying in stocks likely to benefit," it said.

Asian shares elsewhere edged up on Tuesday after modest gains on Wall Street but they remained deep in negative territory for the month. At 0125 GMT, the MSCI index of Asia excluding Japan was 0.67 percent higher.

Gold hit another record above $1,900 an ounce as investors continued to fret about the health of the global economy.

Copyright Reuters, 2011