Thai shares ride over Hurricane Sandy

At noon, the SET Index gained 7.52 points or 0.59 per cent to 1,287.09 points. At the close, the index rose 14.86 points or 1.16 per cent to 1,294.43 points. 

But without new positive factors, Tisco Securities expected the index to face the resistance line at 1,285 or 1,290 points. Meanwhile, the index could also fall to the range of 1,270-1,275 points. 

Sandy hit the US East Coast hard on Monday, prompting the stock market in New York to close on Monday and Tuesday - the first two-day weather postponement since 1808. Government centres were closed as well as UN headquarters, while public transportation services were shut down. Dubai crude oil yesterday dropped slightly by US$0.83 to $106.20 per barrel, as refineries in the East Coast were temporarily shut down and cut off 70 per cent of capacity from the area. 

Meanwhile, global investors keenly monitor the development in Europe, to see if Spain would eventually seek a bail-out package. Meanwhile, Italy's former president Silvio Berlusconi also announced his decision to return to politics, heigthening a chance of reversal in Italy's reforms which could impose risks to the entire euro zone. Investors reacted negatively to Berlusconi's decision, as Italy's 10-year government bond yield yesterday rose 11 basis points to 5 per cent, a new two-week high. 

In its research note, Kiatnakin Securities expected some pressure of Sandy on the Thai market today. Yet, the regional bourses could benefit from the positive sentiment towards China's plan to promote mergers and acquisitions in eight industries. It believed that the market could rise this week, making it a good opportunity for share unloading, before a fall after the US presidential election. 

"As long as the SET index could not hit a new high, above 1,314 points, there is a chance that it could fall to 1,260 points," the brokerage house said.