Jul 22--Phillip Securities (Thailand) PCL 
        Distributor - Bisnews AFE 
Market Outlook: Highly volatile in the morning with profit-taking expected  
following yesterday's strong rally           
        Yesterday, Thai shares staged a strong rebound as foreign selling  
pressure was easing, seen as a better sign for the broader market picture.  
However, the market is still waiting for powerful catalysts that will keep the  
rally alive, as hotly political issues continue to weigh on the market. The  
row with Cambodia over the Preah Vihear temple remains unsettled. The number  
of court cases against some cabinet members and the upcoming cabinet reshuffle  
are still the key issues to watch. We expect some profit taking to set in  
following yesterday's strong gains in this morning's trade, but trading volume  
appears to remain light. Regional sentiment looks weak, as Dow Jones futures  
lost by 100 points in early trade following dismal results from a batch of  
companies after the bell on Wall Street overnight. During the day, trade is  
expected to be choppy, as the market remains directionless. But a great deal  
of good fundamental stocks look appealing, as the market is now very much  
oversold. In our view, the current market levels present an opportunity to  
accumulate fundamentally sound stocks on weakness.       
        Resistance: 700-710 
        Support: 680-675 
Factors affecting the market: 
        - US stocks slipped 29.23 points on Mon as oil rebounded after last  
week's steep decline and Merck and Schering-Plough hurt the pharmaceuticals  
sector. Added to the gloom, dismal corporate results after the bell from a  
batch of companies including American Express, Apple and Texas Instruments set  
a bearish tone for Tue with Dow Jones futures sliding 100 points in this  
morning trade.     
        - Oil shot up US$2.16 on the NYMEX to finish at US$131.04/barrel on  
expectations that tropical storm Dolly would barrel into major oil refinery  
areas in Texas, stocking fears of disruptions to US offshore oil and gas  
production, and the market remained jittery about the dispute between Iran and  
western powers over Iran's nuclear program.    
        - Eyes on local political development: (i) The row over the Preah  
Vihear temple between Thai army chief and Cambodia remains unsettled, and (ii)  
the Constitutional Court will give a verdict whether Deputy Commerce Minister  
Viroon Techapaibul has violated a 5% cap on equity holdings today.  
        - Foreign investors continued to dump Thai shares, but to a smallerextent, worth Bt437m yesterday. 
        + The Thai economy grew at a pace of 5.9% in 1H08, and growth was  
expected to be in a range of 5-5.5% in the second half, based on oil price  
assumptions of US$130-US$140/barrel, according to the Fiscal Policy Office.  
For the year, the economy would grow at an average rate of 5-6%.     
NOTE:  
(+) Positive          (-) Negative          (0) May or May not affect SET 
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The information contained herein is based on sources which Phillip Securities  
(Thailand) believes reliable.We do not guarantee its accuracy or completeness.  
Opinions and estimates expressed herein are subject to change without notice.  
This report is for information only and should not be construed as an offer  
or solicitation for the purchase or sale of any securities referred to herein.  
We accept no liability for any loss, direct or indirect, from the use of this  
document. The directors and/or employees of Phillip Securities and or its  
associates may have an interest in the securities mentioned herein.--End--