One day after ending the three-day winning streak in which it gained more than 12 points or 3 percent on its way to a three-month closing high, the Thai stock market turned right back to the upside. The Stock Exchange of Thailand is closing on resistance at 470 points, and now analysts say the market could challenge that level on Friday.
The global forecast for the Asian markets is mixed with a touch of upside, thanks to some inconsistent corporate news and disappointing economic reports. The European markets all finished solidly in the red, while the U.S. bourses ended modestly higher. The Asian markets have seen choppy and volatile trade all week, and they are predicted to end the week in the same fashion - perhaps slightly to the upside.
The SET finished sharply higher on Thursday, led by the energy stocks and the financials. For the day, the index added 5.44 points or 1.18 percent to close at the daily high of 466.06 after dipping as low as 460.63. Volume was 3.535 billion shares worth 11.572 billion baht.
Among the gainers, energy giant PTT was up 1.73 percent, while PTT Aromatics jumped 6.87 percent, PTT Exploration and Production added 1.55 percent, coal producer Banpu gained 1.87 percent and Siam Commercial Bank was up 0.91 percent.
The lead from Wall Street is fairly optimistic as stocks ultimately ended Thursday's trading session mostly higher after showing considerable uncertainty in the earlier portion of the trading day on weak economic data.
In economic news, a report released by the Labor Department showed that first-time claims for unemployment benefits climbed roughly in line with economist estimates in the week ended April 18. Jobless claims rose to 640,000 from the previous week's revised figure of 613,000. At the same time, the Labor Department said that continuing claims in the week ended April 11th rose to another new record high of 6.14 million from the preceding week's revised level of 6.04 million.
Additionally, the National Association of Realtors released its report on existing home sales in the month of March, showing that the annual rate of sales fell 3.0 percent to 4.57 million. Economists had expected existing home sales to slip to a 4.65 million unit rate.
On the corporate front, Apple (AAPL) reported net income for the second quarter of $1.33 per share, compared to $1.16 per share for the year-ago quarter. Revenue for the second quarter rose to $8.16 billion from $7.51 billion in the prior year quarter. Analysts' consensus estimates had called for Apple to earn $1.09 per share on revenue of $7.96 billion for the second quarter. The better than expected results were primarily due to strong iPhone sales.
Meanwhile, UPS (UPS) reported adjusted first quarter earnings of $0.52 per share, down from $0.87 per share last year and $0.04 below analyst estimates. Revenue also failed to meet analysts' target, falling nearly 14 percent to $10.94 billion.
In other news, President Obama said he would push for a law to provide strong and reliable protections for the millions of Americans who have credit cards after meeting with chief executives of the credit-card lending industry. Obama said he wants legislation that will prevent consumers from facing a sudden, surprising rise in fees, and that companies must make it easier for people to do comparison shopping.
The major averages all moved higher going into the close after bouncing back and forth across the unchanged line for much of the session. The Dow closed up 70.49 points or 0.9 percent at 7,957.06, the NASDAQ closed up 6.09 points or 0.4 percent at 1,652.21 and the S&P 500 closed up 8.37 points or 1.0 percent at 851.92.
In economic news, Thailand will on Friday announce foreign reserves numbers for the week ending April 17. Forecasts call for an increase of 115.5 percent on year after the 115.7 percent annual jump a week earlier.
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