Thai stocks end eight-day fall as banks rebound

17 Aug, 2004

Thai stocks rose 1.38 percent on Monday, ending an eight-day falling streak, as bank stocks rebounded and energy firm PTT rose after it reported a strong second-quarter profit, analysts said.
The benchmark Stock Exchange of Thailand index ended 8.11 points higher at 596.98 points and the big-cap SET 50 index rose 1.53 percent to 41.09 points. Turnover fell to 10.5 billion baht ($253 million) from Friday's 16 billion baht.
The market had dropped almost eight percent over the previous eight trading days to near a three-month low as rising oil prices and expectations of higher domestic interest rates clouded second-half earnings outlooks.
The market should trade sideways on Tuesday, with resistance at 600 points and support at 576 points, Aroonrat said.
Shares in state-owned Krung Thai Bank rose 1.9 percent to 7.95 baht, continuing a rebound which started last week after the central bank said Krung Thai had no need to raise capital and that the Financial Institutions Development Fund had no plan to sell its holding.
The bank sector index rose 1.8 percent.
Shares in Siam Commercial Bank, Thailand's fourth-largest bank, were up 1.4 percent at 43.25 baht after it said stronger loan growth would help it to a record profit this year despite higher oil prices and a likely rate rise.
Shares in top oil and gas firm PTT rose 2.7 percent to 151 baht after the firm said its second-quarter profit doubled to a record as rising global oil prices pushed up petroleum and petrochemical prices and demand for gas rose.
The strong earnings prospects of PTT Exploration and Production pushed its shares up 0.7 percent to 288 baht despite the firm's quarterly profit dropping due to a foreign exchange loss and lower contribution from investments.
The energy sector index was up 1.8 percent.
"PTT's second quarter result was strong and very much in line with our forecast. This piece of positive news helped the overall market sentiment," said SCB Securities Adipong Puttarawigorm.
Shares in Italian-Thai Development PCL, Thailand's biggest construction contractor, rose 10.5 percent to 7.35 baht despite the firm saying its second-quarter net profit fell nine percent as higher steel prices ate into margins.
The property sector index was up 2.7 percent.
Shares in Thailand's largest home builder, Land & Houses PC, rose 1.8 percent to 8.4 baht after the firm said it expected its second-half net profit to top the first half's 2.96 billion baht ($71 million) despite bearish sentiment on the sector.
Shares in top Asian canned tuna exporter Thai Union Frozen Products fell 4.6 percent to 22.7 baht as the company said it maintained its 2004 sales growth forecast at 15 percent and expected net profit to fall 20 percent.

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