SET falls short of 19-year high

The Stock Exchange of Thailand index failed to hold on to its 19-year high, ending the day at 1,539.60 points.

At the end of the day, the index lost 1.98 points or 0.13 per cent, but turnover was as brisk as Bt64.5 billion. The index in the morning briefly touched 1,549.5 points, the highest in 19 years. In the morning session, turnover was as high as Bt34 billion, above the year-to-date average morning turnover of Bt27 billion.

As of 2.25pm, the SET index stood at 1,548.29 points, up by 6.71 points or 0.44 per cent.

"Though the index could fall in the afternoon, it should not fall below 1,545 points. Next week, the index could rise further to 1,585 points," Asia Plus Securities said in a research note.

Positive factors include the appointment of the new governor of the Bank of Japan, Haruhiko Kuroda. As he and Japan’s Prime Minister Shinzo Abe shared economic views, this leads to expectation of additional fund flows to Asia in the short term. Yesterday, foreign investors returned to be net-buyers, with net-buy position worth Bt3.8 bilion - the highest in two months since December 13, 2012.

Foreigners remained net-buyers today, with net-buy position of Bt3.2 billion. In February, they were net-sellers, when sells outpaced purchases by Bt17 billion.

Though, global stock markets could be pressured by ongoing negotiations on the sequester in the US and debt ceiling.