Thai stocks set to track global weaknesses lower

BANGKOK (BestGrowthStock) – Thai stocks are expected to fall on Monday, reflecting weakness in other Asian stock markets because of concern about disappointing U.S. jobs data and a potential debt crisis in Hungary.

“The market will be under pressure of external negative factors about the Hungary debt and the U.S. job data which will lead to fund outflows from risky assets,” broker Phillip Securities said in a research note.

Political risk at home would also keep investors cautious and the main SET index (.SETI: ) was likely to fall to 757 and then dip further to 740 in the day, dealers said.

Prime Minister Abhisit Vejjajiva has said a new election could take place “sooner rather than later” if all sides cooperated while the government was maintaining a state of emergency on concern of possible fresh unrest after recent violent opposition protests.

On Friday, the benchmark SET index (.SETI: ) finished up 0.7 percent at 771.48, its highest level in three weeks, as investors bought resource shares seen safe from domestic political risk such as Banpu (BANP.BK: ) and Lanna Resources (LANN.BK: ).

Foreign investors bought shares worth a net 1.06 billion baht ($32.55 million) on Friday, reducing their net selling this year to 19.5 billion baht.

Click (TH/TRADING01: ) for cumulative trading value by investor type.

MARKET SUMMARY > Oil falls over 1.5 pct; eyes on Europe debt woes (O/R: ) > Wall St hit by U.S. jobs data, European worries (.N: ) > FOREX-Euro falls to fresh 4-yr lows, risk shunned (USD/: ) > Safety bid spurs rally as stocks, euro tumble (US/: ) > Gold slips but off 1-week low; euro-gold hits record.

Stocks and factors to watch

– Central Pattana

Torched last month by anti-government protesters, Central World, Southeast Asia’s second-biggest shopping complex, will re-open its doors within six months, its president said on Friday, ending speculation it would be demolished.

– Total Access Communication

The company expected its second-quarter revenue to be higher than a year earlier because of growth in data services and sales of smart phones, head of investor relations Chavit Sangudomlert told reporters.

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(Reporting by Viparat Jantraprap; Editing by Robert Birsel)

Thai stocks set to track global weaknesses lower