SET recoups loss, gaining 4.7%
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The Thai stock market ended the 3-day dramatic tumble, with the index heading up boosted by the rebound in overseas bourses.
The Stock Exchange of Thailand Index gained as much as 28 points. It ended the morning session with an 18.56 points or 2.05 per cent gain, to 922.62 points.
The index ended the day at 946.62 points, gaining 42.56 points or 4.7 per cent from the previous closing.
Brokerage houses expect more sell-offs, though, with ongoing pressure from the euro zone crisis.
Yesterday, SET nosedived as much as 9.42 per cent before closing with a narrower loss of 5.65 per cent as European bourses edged up on anticipation of good news in solving the public debt crisis. There were reports that Germany would endorse the expansion of the European Financial Stability Facility (EFSF) this weekend while the European Central Bank would cut the interest rate.
Bad news are lingering, including the expectation of huge recapitalisation of banks in Germany, France and the US as well as the chance of double-dip recession in both continents next year.
Tisco Securities expects the SET Index to move in the range of 870-985 points in October. While the index could rise as investors bet on listed companies' quarterly earnings, bad news overseas could pull down the market.
It noted that if the index breaches 990 points in November, there is a 20 per cent chance that it could end the year at 1,060 points. On the contrary, if the index falls below 965 points (50 per cent chance), it could slip further to 760 points at the end of the year.
Yesterday, the Federation of Capital Market Organisations proposed the government set up a market-support fund to buy stocks with good fundamentals. Prime Minister Yingluck Shinawatra today said that the government is now in the wait-and-see mode, hoping that solutions to solve the euro zone debt crisis would instead boost the global economy and stock markets globally.
