The Thai stock market on Tuesday snapped the three-day winning streak in which it had collected almost 25 points or 1.8 percent. The Stock Exchange of Thailand finished just below the 1,435-point plateau, and now analysts are suggesting a mild rebound at the opening of trade on Wednesday.
The global forecast for the Asian markets is upbeat thanks to positive earnings figures and encouraging news regarding the budget woes in Washington. On the earnings front, DuPont, Travelers and Delta Air Lines all posted solid quarterly results. Also, President Barack Obama agreed to a bill that would tie an increase in the debt limit to the passage of a budget. The European markets were mixed and the U.S. bourses were higher, and the Asian markets figure to split the difference.
The SET finished modestly lower on Tuesday following weakness from the energy producers and a mixed performance from the financial sector.
For the day, the index shed 6.39 points or 0.44 percent to finish at 1,434.09 after trading between 1,433.73 and 1,451.06. Volume was 44.902 billion shares worth 55.107 billion baht. There were 464 decliners and 225 gainers, with 105 stocks finishing unchanged.
Among the actives, energy giant PTT was down 0.30 percent, while PTT Exploration and Production dropped 1.53 percent, PTT Global Chemicals shed 0.65 percent, coal miner Banpu lost 0.75 percent, Siam Concrete added 0.45 percent, Thai Airways dipped 0.88 percent, Bangkok Bank was unchanged, Kasikornbank fell 0.77 percent and Siam Commercial Bank collected 0.28 percent.
The lead from Wall Street is positive as stocks moved higher on Tuesday, extending a recent move to the upside. The markets benefited from a positive reaction to the latest earnings news, although stocks initially were lackluster as traders expressed uncertainty about the outlook for the markets following the recent strength.
The latest batch of earnings news eventually some buying interest, with DuPont (DD), Travelers (TRV), and Delta Air Lines (DAL) all posting gains after reporting quarterly results.
Shares of DuPont rose by 1.8 percent after the chemical giant reported fourth quarter earnings that fell year-over-year but came in above analyst estimates. The company also forecast better than expected results in 2013.
Insurance giant Travelers ended the day up by 2.2 percent after reporting fourth quarter earnings that came in well above expectations. Delta advanced by 2.9 percent after its fourth quarter adjusted earnings matched estimates.
On the other hand, shares of Johnson & Johnson (JNJ) were down after the health care giant reported better than expected fourth quarter earnings but provided disappointing guidance.
The markets may have also benefited from a statement from the White House indicating that President Obama would not oppose a House Republican bill that would tie a short-term increase in the debt limit to the passage of a budget. The House is scheduled to vote on the bill later today.
Meanwhile, traders largely shrugged off a report from the National Association of Realtors showing an unexpected drop by existing home sales in December.
The major U.S. averages finished at their best levels of the day as the Dow rose 62.43 points or 0.5 percent to finish at 13,712.13, while the NASDAQ climbed 8.47 points or 0.3 percent to end at 3,143.18 and the S&P 500 advanced 6.53 points or 0.4 percent to close at 1,492.51. With the gains, the Dow and the S&P 500 reached new five-year closing highs, while the NASDAQ hit its best closing level in three months.
by RTT Staff Writer
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