NEGATIVE factors that caused the Thai stock market to plunge by 3.15% or 47.32 points to close at 1,457.02 points yesterday are still there today with banks also steadily sending in their financial statements but a clear positive factor is petrol price rising higher, Thai News Agency quoted KTB Securities head of research Mongkol Puangpetra as saying this morning.
While there are many kinds of negative factors, it is possible for the stock market to recover today because of steep drop yesterday, he said, but cautioned that the bourse could also plunge lower than yesterday’s close by the end of today’s trading session.
Factors investors should carefully follow are today’s Cabinet meeting and global petrol price.
A Reuters report today said that oil prices edged down early this morning but held near one-year highs touched on growing expectations of an output cut by OPEC producers, and traders said the price outlook remains bullish as confidence in crude markets rises.
Oil prices jumped as much as 3 percent on Monday, with Brent hitting a one-year high, after Russia said it was ready to join the Organization of the Petroleum Exporting Countries (OPEC) in curbing crude output.
International Brent crude oil futures were trading at $53.04 per barrel at 0036 GMT, down 10 cents from their previous close, not far off Monday’s $53.73 a barrel high.
Where stock markets in Europe and US are concerned, Mr Mongkol there are two key issues affecting them with one being the polls of the second presidential debate suggesting that that Hilary Clinton continues to add points.
The second factor is the direction of the US interest rates because indications are that the Federal Reserve will hike these rates in December. At the same time it is also expected that European Central Bank meeting next week on October 20 could focus on future direction of quantitative easing.
Speculations on these issues has led to US dollar strengthening.
The strategy today is to invest in or only hold stocks with positive outlook which will ensure that the price will stay steady. When it comes to short-term speculation, stocks with individual positive factors should be selected while also focusing on third quarter results and those stocks still showing financial growth.
Mr Mongkol expects the Thai stock market to close at 1,446-1,467 points today.
TOP: A striking stock market keyboard. Photo: Investment Zen (www.investmentzen.com) (CC-BY-2.0)
By Thai Residents reporters