Thailand: SETI Bullish momentum is still strong

The Thai equity market was generally bullish in the beginning of October and the (Stock Exchange of Thailand Index (SETI) made a new 13-month high at 758.55 points. The market turned into a very volatile mode starting middle of last month when investors have generally lost confidence as the country’s positive sentiment was setback again by political protests. The recent speculation that HM the King was dying sparked panic in the market and the SETI plunged 10% from 746 points to a low of 671 points in two days. It rebounded immediately to 738 points in three days but was dragged down again to close at 685.24 points.

The short term trend has started to decline but the long term trend is still up with a support level at 665 points, based on a 90-day moving average. The index is currently at a 60-day average. Momentum indicators like RSI, MACD and ADX have started to indicate bearish strength. The index failed to stay above the 700 points support level and therefore it is expected to test the next support level at 650 points, as mentioned last month. The index is expected to rebound at 650 points and the resistance level is now the previous support level, which is 700 points.


Weekly SETI chart as at 30 October 2009 using NextVIEW Advisor

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Article contributed by Private Trader, Market Expert, Trading Coach and Chief Market Strategist of Nextview, Mr. Benny Lee. For more articles and commentaries from Benny, click HERE.

Stock Exchange of Thailand Index (SETI) – Bullish momentum is still strong

The Thai Equity market has been very bullish and is one of the best performing markets again this month. Investors were on broad-based buying spree. The benchmark SETI index even broke and stayed above the 700 points resistance level to close at 717.07 points after hitting a 14-month high at 731.58 points. The index so far has increased 63.82 points or 9.7% since a month ago. The SETI is current hovering around the 61.8% Fibonacci retracement from the bear trend that started from the high in November 2007 to the low in December 2008.


Daily SETI price as at 30 September 2009 using NextVIEW Advisor

The momentum of the trend is generally strong with a little weakness in the short term because of the pullback from the 14-month peak. Most momentum indicators are above the mid level and this means that the bulls are still dominating. The index may test the 700 points support level and a good short term trading opportunity is available here as the market is set to make newer highs with resistance at 795 points because of the strong bullish momentum. If the index is unable to hold above 700 points, then the market is set to extend the correction to the next support level at 650 points.

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Article contributed by Private Trader, Market Expert, Trading Coach and Chief Market Strategist of Nextview, Mr. Benny Lee. For more articles and commentaries from Benny, click HERE.

Stock Exchange of Thailand Index (SETI) – Bulls taking charge again

The SETI broke the 640 points resistance levels as the bulls are controlling the market. It is one of the best performing markets in the Asian region despite government protestors planning to stage massive protests in the last weekend of August. At 656.98 points, the benchmark index is almost at a year’s high. The SETI is still hovering above the 50% Fibonacci retracement level from the bear trend in early 2008.


Weekly SETI chart as at 28 August 2009 using NextVIEW Advisor

The trend continues to increase but with a weaker strength. Momentum indicators like the RSI and Momentum are showing short term bearish divergence. If the index is able to maintain above 640 points, it is likely going to test the next resistance level at 700 points. However, if the index falls below the 640 points support level, expect the market to correct further.

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Article contributed by Private Trader, Market Expert, Trading Coach and Chief Market Strategist of Nextview, Mr. Benny Lee. For more articles and commentaries from Benny, click HERE.

Stock Exchange of Thailand Index (SETI) – Bulls taking charge again

The Thailand market went into a downward correction after the SETI rallying slightly above 50% from about 410 points in March to 628 points on 12 June. The SETI then went to a low of 560 points in mid-April before ascending to the current level of 624 points. Despite the political uncertainty in Thailand, the market performed pretty well. Just a year ago the benchmark index was trading above 800 points. Therefore the SETI has retraced 50% from the bear trend that started in early 2008 and this is comparable to markets like Singapore and Hong Kong.


Daily KLCI chart with volume as at 31 July 2009 using NextVIEW Advisor Professional

Technically, the market is still in a major up trend correction with the short term 30-day moving average declining while the longer term 60 and 90-day moving averages are increasing. The bulls have taken over from the bears last week when momentum-based technical indicators like the RSI and Momentum are now above the mid-level. With this bullish momentum, the SETI may test and break above the 640 points resistance level and possible move to the next resistance level at 700 points. SETI support level is at 560 points.

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Article contributed by Private Trader, Market Expert, Trading Coach and Chief Market Strategist of Nextview, Mr. Benny Lee. For more articles and commentaries from Benny, click HERE.

Stock Market Indices Analysis and Updates

US Dow Jones Industrial Average (6,763.29): I have recently comment that the US is heading towards 6,000 points. Click here to read the analysis. In the longer term, it may even go as low as 5,000 points.

Kuala Lumpur Composite Index (868.74) I have made many comments on this market where I live in. It has a long term target of 500 to 550 points. For now, my guess is that the KLCI may test 800. Click here for the analysis.

Singapore FT Straits Times Index (1,528.51): In my previous article on 2 February, I have mentioned that the STI is heading towards 1,600 points. Now that it is already there, I need to analyze further. The STI may start to test the 1,470 points low. The FTSTI has resumed its down trend as the short term 30 day average which was up in the past 2 months has started to decline. The short to long term averages are declining now. The momentum indicators like RSI have declined below the 50 level. The benchmark index is set to test the 1473.77 points low which is a five and a half years low. It may also even test the 10 years low at 1,200 points if there are no changes in the current economic and financial crisis.



Hong Kong Hang Seng Index (12,033.88): My last article was on 20 January 2009 and mentioned that the HSI has a technical target of 8,800 points. The short term 30-day moving average has also declined since and signaled a continuation in the long term down trend. Despite an increasing bullish momentum as indicated by the RSI indicator, is still can’t past through the 50% mark. With weak bullish support and weakening fundamental data, the HSI is expected to continue to fall further to the next support level at 10,600 points.

Japan Nikkei 225 (7,229.72): My last analysis for this market was on 19 January 2009. I have mentioned that a break below the crucial support level may send the Nikkei to a technical target of 5,500 points. Technical indicators have started to show bearish momentum from neutral. The crucial support level is 7,000 points, which is where the index is heading now. A break below this level means that the index has made a new 26-year low.

Thailand SET Index (413.09): My last analysis was on 20 January 2009. I mentioned that the SETI is expected to move sdeways and if the SETI breaks below the support line of 380, the down trend may resume to test the next support level at 320 points. The SETI managed to hold between the trading range mentioned in my last article but a strong momentum downwards has just started after heavy sell down in the US and Europe market.

Vietnam NV Index (241.46): The VNI is currently at 4 years low. My last article was on January 14 where I mentioned that the VNI is in a weak down trend. The support at 284 points wasn't able to hold the selling pressure and price continues to dip. Next Support level is at 220 points and if still this support level can't hold we are looking at the support level at 130, which is is the lowest since October 2000.

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Article contributed by Private Trader, Market Expert, Trading Coach and Chief Market Strategist of Nextview, Mr. Benny Lee. For more articles and commentaries from Benny, click HERE.

Come and visit Benny Lee at ATIC Kuala Lumpur on the 14th and 15th of March 2009

THAILAND STOCK MARKET EXPECTED TO REMAIN SIDEWAYS IN THE NEAR TERM

Since the double bottom formed on the SET Index Chart in a month ago, the market went on to trade sideways although initially there was a bullish momentum in the market. When new Prime Minister Abhisit Vejjajiva took over office on just before Christmas, after a year-long protest that sees the fall of two prime ministers believed to be closely associated formed prime minister Mr. Thaksin Shinawatra who is currently in exile, the market was bullish. The SET Index rose from 440 points on 23rd December 2008 to a high of 488.12 points on the 6th of January 2009. The high was a pivot resistance high formed in November 2008.

The benchmark index has corrected since and now it is back to the level before the new PM took office at 433.19 points. Investors were still not convinced although the primary focus of the new PM is to revive the economy with was battered by the protests that led to lower inflow of tourist. Tourism is a major component in Thailand's GDP. Exports which made up two thirds of Thailand's GDP have declined because of lower demand worldwide. Bangkok Bank estimates Thai GDP growth for the year 2009 to be 2%. For the past four years Thailand have been enjoying a moderate growth in GDP of slightly more than 4%.

Technically, The SETI is in a sideway consolidation period between the support and resistance range between 380 and 480. The SETI is currently in the middle of this sideway range. The bullish momentum still exists in the SET Index in the longer term. The RSI level still holds upwards. The SETI which broke the down trend line resistance level still stays above it. However, the bulls are being hold by the bears strongly at the resistance level.


Daily SETI chart as at 20 Janaury 2009 using NextVIEW Advisor. Click on chart to view enlarged chart.

The SETI is expected to remain in this trading sange in the near term. The future direction of the SETI depends on whether it is going to break the support or resistance level. If the SETI breaks and stay above the resistance level of 480, there is a high chance that the SETI can rally to 600 points. However, if the SETI breaks below the support line of 380, the down trend may resume to test the next support level at 320 points.

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Article contributed by Private Trader, Market Expert, Trading Coach and Chief Market Strategist of Nextview, Mr. Benny Lee. For more articles and commentaries from Benny, click HERE.

Upcoming Workshop from Benny Lee:
Market Outlook and how to Pick Right Value Stocks by Benny Lee | 21 Jan 2009 (K. Lumpur). Click on the title for more details.

Can the new Thailand government gain investors confidence?

Amazing Thailand political struggle for nearly a year has led to a change of Prime Ministers three times in four months. The new democrat and one of the youngest prime minister in Thailand history, Mr. Abhisit Vejjajiva age 44, managed to get just enough votes to be elected as Thailand's 27th Prime Minister. Yesterday, he and his newly formed cabinet members were installed by the King. You can read more news about Thailand here.



Mr. Abhisit said that his first priority was to strengthen the Thailand economy which was badly hit because of street protests that lasted for almost a year. The latest was a week-long protest at both local and international airports. Political pundits believed that this event helped Mr. Abhisit's ascension to become the prime minster, after the courts rules out previous prime minister Mr. Somchai party to be illegal for election fraud.

Thailand SET index (SETI) was at a strong support at 380 points during the protests in late November to early December. The benchmark index strongly rebound and climbed to as high as 70 points or 18% at 450 points just a few days ago. However, after Mr. Abhisit's new cabinet installation, the SETI fell to 434.08 points. The weak regional markets were partly to be blamed.

The SETI is currently at the resistance line of the long term down trend line that started since May this year, when the SETI was at 880 points. The stock market value has fallen to more than half in just over half a year. For the past 2 months, the SETI formed a double bottom chart pattern which indicates market is at the bottom. The divergence on the RSI helped strengthens the support at this bottom. The neckline resistance or confirmation for this double bottom is at 470 points is a crucial level because if the SETI is able to break above this level, the SETI is expected to rally to 560 points. The increasing RSI indicator indicates that there is a high chance that the SETI is able to break the neckline.

However, in the short term, the SETI is expected to pull back further because of the resistance to the temporary support at 411 points and if this level fails to hold, it may test the strong 380 points support level again.


Daily SETI chart as at 22 December 2008 using NextVIEW Advisor. Click on chart to view enlarged chart.

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Article contributed by Private Trader, Market Expert, Trading Coach and Chief Market Strategist of Nextview, Mr. Benny Lee. For more articles and commentaries from Benny, click HERE.

Upcoming Workshop from Benny Lee:
Market Outlook and how to Pick Right Value Stocks by Benny Lee | 23 Dec 2008 (K. Lumpur). Click on the title for more details.

Another Asian market halted - Thailand

The Stock Exchange of Thailand suspended its trading for 30 minutes aat 2.34p.m. local time (+7.00GMT), as the benchmark SET Index fell 10%, minutes after the second trading session. The SET Index was down 7.6% when it closed in the first trading session. This is the second exchange that has halted its trading activities after Japan just a few a hours ago.

Stock markets support level - where are they?

The fact that central banks started to show concern and provide financial assistance to major financial institutions show that there is a great concern to the financial industry and a worsening economy especially in the US. Market indices has started to make new lows and breaking many immediate support levels.

On September 18, I have established some support level for the stock market indices and looks like the markets are nearing these levels. There still some room to move downwards for some markets.

Kuala Lumpur Composite Index 140 points (14%) above support level
Close: 997.23 Low: 980.28
Support level: 850 to 900

Singapore Straits Times Index rebounded on support level
Close: 2,177.55 Low: 2,128.96
Support level: 2,100

Hong Kong Hang Seng Index 1,800 points (10.7%) above support level
Close: 16,803.78 Low 16,790.86
Support level: 15,000

Japan Nikkei 225 broke below support level
Close: 10,155.90 Low: 9,916.21
Support level: 10,500
I will comment on the Japanese market tomorrow.

Thailand SET Index 40 points (7.5%) from support level
Close: 528.71 Low: 527.70
Support level: 480 to 500

US Dow Jones Industrial Average Rebounded from Support Level
Close: 9955.50 Low: 9525.32
Support level: 9,600 - 9,700

Commentary and analysis by Benny Lee

Stock Market Tsunami

Despite Bush's government success in finally getting the congress' vote in approving the US$700 billion bailout plan, equity markets in the US and the rest of the world continue to weaken. The plan was earlier rejected and caused the Dow Jones Industrial Average (DJI) to fall its biggest-ever one day decline, with finance related stocks falling more than 40% on the 29th of Septermber.

On Thursday when the bailout plan was approved, the DJI fell 348 points as investors are not so convinced that the bailout plan would stop the economy from an impending recession, which is doubt by some as could be the worst in American history.

The events that take place in the US has caused a tsunami in the equity markets this week. It's volatility has caused many investors to tremble.

On Friday the DJI fell 157.47 points to close at 10,325.38, lower than the lowest low on the 29th of September. Click here and here for DJI forecast.

Below are the performances of the rest of the markets on Friday;

Singapore ST Index: 2,297.12. Down 66.48 points or 2.8%.
Click here and here for STI forecast.

Kuala Lumpur CI: 1,016.70. Down 9.18 points 0r 0.2%.
Click here for KLCI forecast.

Hong Kong Hang Seng: 17,682.40. Down 528.71 points or 2.9%
Click here for Hang Seng forecast.

Japan Nikkei 225: 10,938.14. Down 216.62 points or 1.9%.
Near support level. Click here for Nikkei 225 forecast.

Thailand SET Index: 590.05. Down 7.64 points or 1.3%.
Click here for SETI forecast.

The China market was spared from the stock market tsunami as it is closed for a week-long national day holiday from 29th September to 3rd October. I believe it is going to open at least 10 lower when the market re-opens on Monday.

Thailand SETI at 4 years low - Currently at support level, but may find next support level

The political drama in the past one month has sent the Thailand markets into a frenzy and now the fear of further credit crunch, the investors in Thailand were selling off. The benchmark SETI is in its lowest in more than 4 years. Today as at 12.50 pm, the SETI fell 31.2 points or 5.16% to close at 573.89 points.

A new prime minister was elected and will be officially installed soon. Deputy President of ruling party PPP Mr. Somchai Wongsawat who is only an MP for seven months and also the brother-in-law of ousted former Prime Minister Thaksin Shinawatra is set to be the Thailand's 26th Prime Minister. He vows to make peace with opposition party PAD, which held street protests that demanded former Prime Minister Samak Sundaravej to resign.

Recently Thailand's central bank, the Bank of Thailand announces that Thailand is insulated from Lehman collapse. AIA in Thailand gave assurance to their policy holders that they are still fundamentally strong in Thailand.


Monthly SETI chart as at 12.50pm, 18 September 2008 using NextVIEW Advisor. Click on chart to view enlarged chart.

Technically, the Thailand SETI currently at the support level and evidence is needed to confirm whether there are any support, which is not seen at this moment. The chart also suggests that the current support level may not hold and it may lead the SETI to the next support level between 480 and 500 points.

Commentary and Analysis by Benny Lee

Thailand Central bank fails to halt baht drop

From www.bangkokpost.com:

The baht fell to a one-year low against the US dollar on Tuesday morning shortly after the prime minister declared a state of emergency, even though the Bank of Thailand intervened in the foreign exchange market.

BoT deputy governor on fiscal policy Ajana Waikwamdee said the central bank began inervening right after the declaration of a state of emergency.

She said the currency was "fluctuating", meaning falling.

At mid-morning, the currency hit 34.52 against the dollar. By early afternoon, it had sunk to 34.58 as the BoT continued to pour foreign reserves in to try to stop the market.

Mrs Ajana said she had not seen any "massive foreign capital outflow" and said it is not yet necessary to set up a capital reserve fund.

The bottom also fell out of the Stock Exchange of Thailand.

At the midday break, the SET Index had dropped 12.21 points to 663.01.


US Dollar against Thailand Baht daily chart since July 2008


Daily USD/THB chart as at 2 September 2008, 3.30pm using NextVIEW Advisor


Stock Exchange of Thailand Index daily chart


Daily SETI chart as at 2 September 2008, 3.35pm using NextVIEW Advisor


Trouble in Bangkok



More about trouble in bangkok. click HERE.

Jittery waters in equity markets caused by Political Tsunami in Malaysia and Thailand

Malaysia and Thailand has been hit by political tsunami recently. Both Prime Ministers are being pressured to step down.

In Malaysia 2 days ago, former Deputy Prime Minister and the de-facto opposition leader Anwar Ibrahim has won the "most important" by-election in one of the parliament seats which was recently vacated by his wife to pave way for him to come back into parliament after a long absent. He won with a bigger majority than his wife did in the March general election despite the ruling BN goverment heavy machinery being deployed there.


Photo taken from Rocky's Bru

There has been calls by leaders of the ruling goverment to ask the current Prime Minister Abdullah Ahmad to step down because of this defeat. The Prime Minister is already facing challenges from veteran leaders within his own party, UMNO to replace him as the president of his party. This clearly shows strong resistance to the current goverment and the presence of very vocal Anwar Ibrahim will send the parliament into more action, and thus creating more turmoil in the house of law-makers.

Investors prefer to stay in the sidelines before taking further action. The The Kuala Lumpur Composite Index (KLCI) closesd at 8.23 points on the by-election day and continue to ease further today by shedding another 2.85 points to close at 1067.65 yesterday.

In Thailand,

Thousand of protesters stormed into seven state agencies including the Government House, as the People's Alliance for Democracy (PAD) tried to bring the government of Prime Minister Samak Sundaravej to its knees yesterday. Five core leaders from PAD were arrested for causing this uprising. (This may sound very familar to the Malaysians especially the Indians). More details here on Bangkok post. Few businesses and bank branches were closed. Protests started two months ago but this is an uprising. Are we going to see the end of Samak's rule? There is a high chance.


Photo taken from www.bangkokpost.com

The protest is expected to go on for another 2 more days and the Prime Minister has already issued warning to protestes to disperse or face legal action. Unexpectedly the benchmark SET Index rose 7.07 points yesterday (1%) to close at 675.99 points, after finding support at the 660 points level once again, two days ago.

Are these protests sign of people expecting Samak's downfall. Samak has been blamed for the economic slowdown because the Thailand economy and financial markets went downhill when he took over as Prime Minister in January this year.

In Hong Kong, real natural disaster affects businesses and the stock market. The stock market was closed 2 times this month because of high-category typhoon. However, the market has rebounded well this week. The benchmark Hang Seng Index rose 408 points (1.94%) yesterday.

Futile bull effort on Thailand market

The Stock Exchange of Thailand Index (SETI) was well supported at 660 points level. In my previous analysis of the Thailand market, I mentioned that there is only a fight back from the bulls if the SETI overcome the 700 points immediate resistance.

The SETI made rebound after testing the 660 points support level and overcame the 700 points resistance last week. However, price was having a "brain freeze" once overcoming this level. It was not able to hold above 700 points and it is now below it. The SETI closed at 691.33 points on the 19th August 2008.

Technically, the SETI is still in a down trend. However, the momentum of the down trend is deemed weak because of the bullish divergence on momentum indicators like RSI and Momentum. This indicate that there is a low chance of price breaking below the current support level which is 660 points.

The bulls effort may be futile, now that the Asian markets and other markets round the world come crumbling down. Expect the SETI to test the strong 660 points support level and like I have mentioned in my previous commentary, if SETI breaks below this support level, the next support level is at 600 points.


Daily SETI chart as at 19 August 2008, using NextView Advisor

Commentary and Analysis by Benny Lee

Markets in Asia expected to decline today

The Olympic is beginning today and although today may be a very auspicious date for the Chinese (8/8/08) because 8 means wealth, stock markets in Asia is expected to decline. The extreme storm in Hong Kong shifted to US, literally.



The Dow Jones industrial Average fell 224.64 points or 1.92% to close at 11,431.43 points yesterday as there are concerns in the financial sector, higher unemployment and lackluster retail sale. New concerns in the economy has arised as oil price has stop declining yesterday. Price of bonds increased as investors seek a more safer bet.

Investors in Singapore were already worried yesterday. The Singapore Straits Times Index was fell 1.84% yesterday and is expected to continue to fall today, expected to test support level at 2,800 points.

In Malaysia, stocks fell lower and market volume was relatively lower as all eyes and years were on former deputy prime minister Anwar Ibrahim being charged in court yesterday for alleged sodomy case. The benchmark composite index fell 0.35% yesterday. The KLCI may decline further and have more room to move downward because support level is at 1,090 points.

In Hong Kong, where market was suspended for one day on wednesday because of extreme storm climbed 0.7% higher yesterday but performance was rather weak because it closed lower than it closed about 300 points lower than the opening price. The HSI is currently in between the support and resistance level and is expected to fall heavily today.

There was a strong rebound in Thailand yesterday as SET index rose 4.3% or 29 points yesterday to close at the high of the day with 705.35 points, after finding support at 660 points, close to the support level of 664 points I established for SETI earlier. The SETI find support after price of oil starts to fall, cooling off the fear of rising inflation.

Brokers pointed out that the increase was in response to falling world oil prices and an influx of foreign funds. Probably US president's George visit to Bangkok encouraged some speculation to the Thai stock market. However, I expect this to be very short term and with the fall in the DJI, investors may lock in profits and this may send the SETI down aggressively.

Commentary and Analysis by Benny Lee

Strong rebound on DOW and other indices update

The benchmark Dow Jones industrial Average (DJI) made a strong rebound today, climbng 331.62 points or 2.94% to close at 11615.77. I believe it is caused by declining oil price and strengthening of the US dollar. Light crude oil futures is currently traded at US$118.25 per barrel and still has room to decline. The DJI may face resistance at 11,700 points.

Other regional indices which were weak yesterday, are expected to rise today, because of this.

The Singapore's STI closed at 2,900 points yesterday. If there is a rally, it may find resistance at 3,000 points.

Kuala Lumpur Composite Index closed at 1134.50, and may find resistance at 1,180 points.

The Hang Seng Index closed low yesterday at 22514.92. Therefore expected a bigger rise today. However, it may find resistance at 23,370 points. UPDATE (12.30pm): Stock market shut down because of Severe Tropical Storm Kammuri... Click HERE to read more.

Thailand's SETI closed at 667.12 points yesterday. We may not see a strong rally on SETI because their major concerns were not just oil price but the problems in the current goverment where confidence level is low. It is expected to trade in a range of 660 and 700 points.

Generally, the Asian markets will rebound sharply today, but still, in my opinion is that the bears are still in control.

Analysis and commentary by Benny Lee

Thailand SETI: Breather for the Bears

Thailand's economy has been taken slowed down because of the current political situation, the government's lack of effort in handling inflation crisis, and the escalating problems in the south. These factors have led the bears to be in control in the financial markets.

The benchmark Stock Exchange of Thailand Index (SETI) fell to 664 points just a few weeks ago and two months prior to that low the SETI was at 880 points. The SETI fell 216 points 0r 24.5% in just 2 months and this sent negative vibes to the investment community who now fear whether the bears would bring the market down further.

The SETI is currently at 678.66 points (as of Friday, 1st if August). After hitting the low of about 664 points few weeks ago, the SETI made a rebound, but only to find the previous support level of 700 points now becomes the resistance.

The current trend is extremely bearish. However, the support at 660 points may provide some breather for bears and opportunity for the bulls to gain foothold and fight back. It is still early to identify whether this support level is strong or weak. This depends on the SETI performance this week. We'll see the bulls fighting back if the SETI is able to break the 700 points resistance level. Failing to do so would cause the SETI to slip further to the main support level of 600 points.

Commentary and analysis by Benny Lee

Financial Market Related News around the Region

SINGAPORE

1) Recent media reports predicting that private home rents will take a steep dive next year are certainly alarming. But a closer look at the numbers suggests that they may not take such a beating after all. read more here.

MALAYSIA

1) 'We will announce the new growth target (for this year) officially on August 29 in the presentation of the Budget 2009,' Mr Nor Mohamed said. 'Growth will be positive and significantly so.' Read more here.

2) THE next three to four weeks would be crucial for the Government before it can decide on further measures to cushion the impact of the volatile crude oil price. Read more here.

HONG KONG

1) HKEx chief executive Paul Chow Man-yiu said yesterday the short-selling tick rule would be temporarily reinstated for five consecutive trading days if the stock market drops 5 percent, as required by the Securities and Futures Commission. He said the stock exchange has to further consult the market for the tick rule's relaxation as it involves potential technical problems. Read more here.

THAILAND:

1) Thailand's inflation accelerated at the fastest pace in a decade in July, gaining 9.2% from the same month a year ago due to surging oil and food prices. Read more here.

2) The ministry today will cut the subsidy of 40 satang a litre that had been absorbed by the state Oil Fund since February, and impose a levy of 10 satang to wipe out the benefit if the retail price reduction. Read more here.

VIETNAM

1) Joint venture or wholly-foreign invested financial companies must have total assets worth more than US$10 billion by the end of the year before applying for licensure. Read more here.

2) It will take businesses a maximum of just five days to receive business registration certificates, according to a new inter-ministry circular released on Tuesday. It was ten days previously. Read more here.

3) A General Statistics Office report said electronic and computer-component exports reached US$1.44 billion in the first seven months of the year, a year-on-year increase of 29 per cent. Read more here.

4) Accounting and consulting firm Grant Thornton Viet Nam’s latest survey results on Viet Nam’s hotels show increases in average room rates and number of rooms. Read more here.

Thailand SETI: More downside for the SETI

A string of street protests against the current government has caused confidence in the equity market to be weak as well. The SETI is now back to its level where it was before the new government was formed. It is at the major support level of 734 points. The SETI closed at 743.03 on Friday. The current trend is obviously down and the momentum indicators like RSI and MACD are still indicating a strong down trend.

There are no indications of price reversal detected on the SETI as opposed to other markets. Therefore, more downside for the SETI is expected and it may test the support level of 734 points again and most probably would break below this level this time to continue the down trend. The next support level is at the psychological 700 points level. Current resistance level is at 786 points. By Benny Lee

Thailand SETI - currently at a crucial Fibonacci retracement level

After a good up trend rally since January this year, when the SETI was at about 740 points, the SETI finally met its resistance at 890 points last month. Since then, the SETI slid downwards to 782.34 points today. This slide accounts for a 62% retracement from the up trend rally. Unlike other markets which have found may support levels during the downward rally, the SETI only found once in early June and the rally only lasted two days before the down trend resumes.

With the strong downward momentum the SETI is expected to slide further to test its main support level at 739 points. However, a slight technical rebound is expected immediately because the SETI is currently at a crucial Fibonacci retracement level (61.8%) and the Stochastic has indicated an oversold position and this is the second time the Stochastic crosses above its trigger line. The rebound may be short-lived as the SETI may find resistance at 800 points.

Article by Benny Lee