Thai stocks are set to rise, fuelled by a return of foreign funds and expectations of stronger corporate profits, analysts said. Thai banks, due to report their fourth quarter performance this month, should also be firmer in the short term, they said.
"There's a chance we will see a rebound, with signs of foreign investors coming in to do short-covering buying after pulling out late last year, said Charoen Iampattantham, an analyst with KT Zmico Securities. "The buying to cover often leads to more buying, and so we see that as a catalyst for today's market," he said.
Resistance on the main index is pegged at 740 with support at 730, Chakkrit said. On Thursday, the benchmark SET index lost 0.15 percent to 734.63, having hit an eight-day high of 740.91 at one stage, with energy blue chips leading the losers. Foreign investors, however, continued to buy, picking up a net 1.08 billion.
Any Thai rate move would have to take into account those of other economies to prevent the proliferation of "carry trades" that would push the baht higher, the country's finance minister said.
The fourth-largest lender said that lending picked up in the fourth quarter of 2009 and as a result it may report that its loan book grew last year, in contrast to the position at other banks. Thailand's sixth-largest lender expects an economic recovery from the last quarter of 2009 to help push 2009 net profit above its forecast, and profits should continue to improve this year.
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