SET up 2.58 points to 1,561.63

SET up 2.58 points to 1,561.63

Thai stocks gained 0.2% on Friday as Asian markets were little changed in light of data showing subdued economic performance in Japan.

The Stock Exchange of Thailand Index rose 2.58 points from Thursday to close at 1,561.63, an increase of 0.3% from the previous Friday's close. Turnover was 48.7 billion baht, with 9.92 billion shares traded.

The local market is up 20.2% from the end of 2013.

Foreign investors were net sellers on Friday of 28.79 million baht worth of Thai shares, ending the month with total net buying of 2.4 billion. For the year to date they are net sellers of 24.87 billion baht.

Local institutions were net sellers of 500.5 million baht and brokers sold 509.9 million. Individual investors were net buyers of 1.04 billion baht. 

Asian stock markets drifted on Friday following Japanese data showing that the region's second biggest economy is struggling to recover from a sales tax increase. European shares were marginally higher even as a report said that euro zone inflation had declined to 0.3%, suggesting the recovery is still shaky.

Germany's DAX was up 0.2% in early trade while the CAC 40 in Paris and the FTSE 100 in London were both up 0.1%. US stocks were poised to open higher, with Dow and S&P 500 futures up 0.2%.

In Tokyo, the Nikkei 225 slipped 0.2% to close at 15,424.59. South Korea's Kospi dipped 0.4% to 2,068.54 and Hong Kong's Hang Seng was little changed at 24,742.06. The Shanghai Composite swung between gains and losses before closing 1% higher at 2,217.20. Australia's S&P/ASX 200 was flat at 5,625.90. Benchmarks in Taiwan, Singapore, New Zealand, the Philippines and Indonesia also slipped.

The latest monthly data for July in Japan showed that inflation was unchanged from June, real incomes slipped 6.2% from a year earlier and unemployment edged higher to 3.8%.

In Bangkok, the SET50 index of blue chips ended at 1,044.25 points, down 0.15, on turnover of 23,67 billion baht, and the SET100 rose 2.90 points to 2,313.24 in trade worth 35.59 billion. The SETHD index of high-dividend shares declined 4.50 points to 1,226.73, with turnover of 10.36 billion baht. The Market for Alternative Investment gained 4.44 points to 637.93, with transaction value of 7.56 billion baht.

In the currency markets, the baht completed its third consecutive monthly rise but was little changed on the week, as inflows continued into local stocks.

The local currency has gained 2.8% against the dollar since the beginning of June, the best three-month performance among 24 emerging-market exchange rates tracked by Bloomberg.

The baht was trading late Friday in Bangkok around 31.93 to the dollar, compared with 31.92/94 on Thursday and 31.93/95 a week earlier.

GDP increased 0.4% in the second quarter from a year earlier, after contracting 0.5% in the previous three months. Central bank data released on Friday showed that private consumption rose 0.2% year-on-year in July, the first increase since August 2013.

"The economy needs consumption to recover," said Tim Leelahaphan, an economist at Maybank Kim Eng Securities. "It is one of the most important drivers."

However, a surprise shortfall in the country's current account may limit further gains in the baht in the near term. The country recorded an $864-million deficit in July, the biggest shortfall since May 2013 and compared with the median estimate for a $620 million surplus in a Bloomberg survey.

"As the military junta is making progress in revitalizing the economy after disruptions in the first quarter, we’ve seen a return of portfolio inflows," said Jessica Liang, a Hong Kong-based analyst at Morgan Stanley Asia. "However, we remain cautious on the baht given its weak current-account cushion and uncertain political outlook."

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