BANGKOK, April 7 (Reuters) - Thai stocks are expected to edge down on Tuesday because of domestic political tension ahead of a big anti-government rally, as well as gloom on overseas markets due to U.S. financial fears, analysts said.
Thousands of red-shirted protesters, supporters of exiled Prime Minister Thaksin Shinawatra, plan a big rally on Wednesday, and Prime Minister Abhisit Vejjajiva has vowed to take firm measures to prevent bloody confrontation. [nBKK442810]
"Domestic politics remains the key risk factor for our market, with investors likely to sell due to fears related to the big rally on April 8," said Kosin Sripaiboon, head of research at UOB Kay Hian Securities. "We will also track other Asian markets lower."
On Monday U.S. bank shares were dragged down after analyst Mike Mayo of Calyon Securities warned of rising loan losses by the end of 2010. [ID:nN06322858].
Support on the main index .SETI is expected at 440 and 437 and resistance at 447 and 450, the analysts added.
The Thai market was closed on Monday for a public holiday. On Friday, it climbed 0.8 percent to 446.04, its highest close since Feb. 16, cheered by improving U.S. data.
Click [TH/TRADING01] for cumulative trading value by investor type. ----------------------MARKET SNAPSHOT @ 0124 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG S&P 500 .SPX 835.48 -0.83% -7.020 USD/JPY 100.74 -0.28% -0.280 10-YR US TSY YLD 2.9168 -- -0.015 SPOT GOLD 874.4 0.64% 5.600 US CRUDE CLc1 51.04 -0.02% -0.010 DOW JONES .DJI 7975.85 -0.52% -41.74 ASIA ADRS .BKAS 95.49 -2.05% -2.00 ------------------------------------------------------------- MARKET SUMMARY > NYMEX-Crude stays above $51/bbl after 2.8 pct fall [O/R] > US STOCKS-Wall Street rally stumbles as bank fears reemerge[.N] > FOREX-US dollar rises broadly as U.S. stocks fall [USD/] > TREASURIES-Bonds fall on concerns over supply, Fed buying [US/] > PRECIOUS-Gold edges up as market seen oversold; ETF stead[GOL/]
STOCKS AND FACTORS TO WATCH
- Thailand's economy will contract sharply this year, largely because of the global recession, and low inflation gives it room for further interest rate cuts, the International Monetary Fund said. [nN06419616]
- The global economic crisis and the security threat posed by North Korea's rocket launch will grab much of the attention this weekend when Asian leaders gather in Thailand for their annual summit. [nBKK489993]
- For the Thai press digest click on [PRESS/TH]
- For Thailand's IPO diary click on - For Thailand's stock exchange news click on [TH-SET]- For Thailand corporate earnings: [TH-RES-RTRS]- For Thailand economic forecast: [POLL-ECI-TH-RTRS] ($1=35.37 Baht) (Reporting by Arada Therdthammakun; Editing by Alan Raybould)Permanent link to this post: Political worries, falls abroad to hit Thai stocks
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