SET index up 6.11 points
- Published: 16/11/2012 at 04:59 PM
- Online news:
Thai stocks inched upward on Friday while markets elsewhere in Asia declined, except for Japan, where stocks jumped amid hope that an election will bring economic improvements.
The Stock Exchange of Thailand Index rose 6.11 points to close at 1,280.13, down 0.1% from the previous Friday's close of 1,296.98. Turnover was modest at 24.79 billion baht, with 4.2 billion shares traded.
The weak global economy, combined with confirmation that the euro zone had slipped back into recession, continued to affect trading sentiment on Asian and global markets.
Local investors, meanwhile, expect to see signs of a further slowdown in the Thai economy when the National Economic and Social Development Board releases official third-quarter figures on Monday.
The consensus from analysts and economists surveyed by Bloomberg is that third-quarter growth slowed to 3% from 4.2% in the previous three months.
Foreign investors on the SET were net sellers on Friday of 1.24 billion baht worth of Thai shares and local brokers sold 1.08 billion. Local institutions were net buyers of 1.53 billion baht and individual investors bought 793.93 million.
Trading on world stock markets was lethargic after data showed Europe had slipped back into recession and several big US retailers disappointed investors with weak forecasts.
The exception was Japan's Nikkei 225 stock index, which jumped 2.2% to 9,024.16, on expectations that the opposition Liberal Democratic Party may return to power after the Dec 16 elections and pursue more aggressive stimulus policies.
LDP leader Shinzo Abe has pledged to push for ways to weaken the yen, whose strength against other currencies has hammered exporters.
Elsewhere, Hong Kong's Hang Seng rose 0.2% to 21,159.01. South Korea's Kospi fell 0.5% to 1,860.83. Australia's S&P/ASX 200 lost 0.3% to 4,336.80. Benchmarks in Taiwan, New Zealand and mainland China fell.
In Bangkok, the SET50 index of blue chips ended at 867.07 points, up 4.17 points, with total trade value of 16.29 billion baht. The SETHD index of high-dividend shares rose 8.16 points to 1,130.58, with turnover of 6.28 billion baht. The Market for Alternative Investment gained 6.18 points to 371.15, with transaction value of 1.05 billion baht.
The five most active shares by value were led by PTT, unchanged at 314 baht; and Symphony Communication (SYMC), which has a contract to provide a fibre-optic network in 10 provinces for Cable Thai Holding (CTH), which recently won the broadcast rights for English Premier League football for the next three seasons. Other top shares by value were Indorama Ventures (IVL), down 50 satang to 24.20 baht; SCB, down 1 baht to 157.50; and WHA, up 80 satang to 20.90.
In the currency markets, the baht posted a weekly decline and bonds fell as concern that the global economy is losing momentum curbed demand for riskier assets, making it harder for emerging markets to attract funds.
Asian currencies fell by the most in three months as concern budget deficits in the US and Greece will delay a global economic recovery prompted investors to pull money from riskier assets.
The baht was trading late Friday in Bangkok at 30.75 to the dollar, compared with 30.68/72 on Thursday and 30.62/66 the previous Friday.
Koji Fukaya, president of the currency research and consulting company Office Fukaya in Tokyo, predicted currency weakness in Asia would be short-lived.
"Stock declines are hurting risk sentiment and investors are selling Asian equities, putting downward pressure on regional currencies," he said.
"The third-quarter [economic] data may be weak but the situation is better this quarter. That suggests money will continue to flow into emerging markets, including Asia, and their currencies will also recover in the medium to long term."
About the author
- Writer: Online Reporters
Position: Online Reporters