Thailand’s stock market likely to come down

Chakkrit Charoenmethachai of Far East Securities said that Thai shares are likely to take a breather at the opening of shares, we might see the market coming down  a bit at the opening but after that they should climb further, which is expected. A day after hitting a 7-1/2-month high, but hopes of an official interest rate cut and inward fund flows will offset any profit-taking.

The expected resistance on the main index on Tuesday ended up 3.01 percent at 556.47, hitting its highest since Oct. 6, led by buying of energy blue chips and top banks. The catalyst for a rally here is foreign fund flows, which might continue to come in. Foreign investors picked up a net 2.16 billion baht of Thai shares, bringing total purchases to 4.64 billion so far this year.

The key factor is to watch the Bank of Thailand rate meeting, and the decision is due around 0730 GMT. It is expected to make its fifth straight interest rate cut since December to soften the impact of recession, but that will probably be its last easing this year, according to economists polled by Reuters.