Dec 17--Kasikorn Research Center

Distributor - Bisnews AFE

(December 10-14, 2007)

* The Stock Market

* The Thai stock market "The Thai SET rebounded on Friday following the Court verdict on PTT PLC.'s case"

During the week of 11-14 December, the SET Index finished at 836.40 points, falling by 0.6 percent from the 841.39 points of the previous week, but rising 23.03 percent over the end of last year. Also, the weekly trading value had decreased 9.64 percent from the previous week to Bt63,470.42 million, where it was Bt70,244.97 million the week before. The average trading value also dropped from Bt17,561.24 million to Bt12,694.08 million. Institutional and retail investors were net buyers at Bt766.27 million and Bt3,782.15 million, respectively, while foreign investors were net sellers at Bt4,548.43 million. As for the MAI index, it closed at 266.97 points, falling by 1.13 percent from the 270.03 points of the previous week, but rising 38.02 percent over the end of last year.

The SET Index was closed on Monday. On Tuesday, the market swung in negative territory in contrast to other regional stock markets' movements, weighed on by profit-taking on banking, petrochemical and construction stock. Moreover, some refinery shares fell on declining refinery charges. Thai stock extended losses on Wednesday and Thursday, following a drop in foreign stock markets after a less-than-expected rate cut by the FOMC. There was selling of large-cap stock in energy, banking and construction during thin trading as investors were sidelined ahead of the Supreme Court verdict on PTT's case on Friday. The SET Index gained on Friday, after the Court reaffirmed the legitimacy of PTT as a listed company, but ordered that their pipeline assets be returned to the state. Moreover, the market was supported by buy-backs of energy, banking and technology stock.

As for trading prospects during the week of 17-21 December, KSecurities and KResearch view that the market will fluctuate as investors will be paying attention to the release of the November Trade Balance from the Ministry of Commerce, as well as additional news on PTT's case. Meanwhile, foreign factors, such as the situation in the U.S. property and credit markets, along with global oil price movements, will still influence Thai markets next week. On the technical side, KSecurities expects that the SET index will have support at 835 and 828 points, while resistance levels areseen at 846 and 863 points, respectively.

* US Stock Markets "U.S. markets fell, as markets disappointed with the less-than-expected rate cut from the FOMC"

On Friday, the DJIA closed at 13,339.85 points, falling 2.1 percent from the 13,625.58 points of the previous week, but rising 7.03 percent over the end of 2006. Meanwhile, the NASDAQ closed at 2,635.74 points, falling 2.6 percent from the 2,706.16 points of the previous week, but rising 9.13 percent over the end of last year. U.S. stock markets edged up on Monday, due to rising investor confidence following news that new capital would be injected to MBIA Inc. - a mortgage insurance company- and the Dutch UBS Bank. Moreover, the expectation that the Fed would cut their policy rate on Tuesday lifted interest-rate sensitive stock such as banking, mortgage lenders and homebuilders. However, U.S. markets plunged by 294.26 points - 2.14 percent on Tuesday following a less-than-expected rate cut from the FOMC that dragged down homebuilders, retailers, banking and manufacturers. The market rebounded once again on Wednesday, after the announcement of a consolidation plan between the Fed and other large central banks in an attempt to provide more liquidity to some distressed banks. On Thursday, the DJIA rose further after news that Honeywell International had increased their earnings outlook for next year. But gains were offset by the release of the strong Producer Price Index that reported its highest increase in 34 years in November. U.S. stock slid again on Friday as a surge in the November Consumer Prices stirred some concern that the Federal Reserve might back away from cutting interest rates.

* Japanese Stock Markets "The NIKKEI plummeted, following a fall in the U.S. markets "

On Friday, the Nikkei finished the week at 15,514.51 points, falling 2.77 percent from the 15,956.37 points of the previous week, and 9.93 percent from the end of last year. Japanese markets plunged on Monday ahead of the FOMC meeting on Tuesday and the release of the Bank of Japan (BOJ)'s Tankan Survey on Friday amid the release of strong October Machinery Orders. The Nikkei bounced bank on Tuesday, after news about new capital being injectioned into the UBS Bank eased concerns about problems in the credit market and pushed up some financial shares in the U.S. market such as Mitsubishi UFJ Financial Group Inc., while exporter stock rose on a stronger USD. Nevertheless, the Japanese market dropped for 3 days in a row after that dueto many negative factors such as the disappointing rate cut from the FOMC, some profit warnings and more loan loss provisioning from the Bank of America and Wachovia Corp. that dragged down Japanese banking stock. Meanwhile on Friday, the market was pressured by the release of the Tankan Survey that had shown confidence among large manufacturers had fallen to the lowest level in 2 years.

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