Thai stocks set to follow overseas bourses higher

BANGKOK, March 8 (Reuters) - Thai shares are set for a higher start on Monday, tracking early gains in Asia following a jump in U.S. stocks and optimism over the labour market there.

'The Thai market should rebound but any strong rally will be limited by issues about Thai politics,' Thanachart Securities said in a research note.

The political worries are related to plans by anti-government supporters of former premier Thaksin Shinawatra to hold mass rallies from the end of this week in a bid to force new elections.

'We expect commodities, especially the PTT group, to push up the SET index on the back of higher commodity prices,' Thanachart said.

On Friday, the SET index lost 0.94 percent to 723.96, falling for a second day due to late selling in telecom shares amid continuing concern over possible changes to their operating concessions.

Telecom stocks were hit last week by concern over the fallout from a court ruling against Thaksin, who founded telecoms group Shin Corp.

Despite the political uncertainty, foreign investors poured a net $323 million into Thai equities last week, becoming net buyers this year for the first time since Jan. 18.

Resistance on the main index on Monday was seen at 740 and support at 720 and 713, said Chakkrit Charoenmetachai, an analyst with Globlex Securities.

Click for cumulative trading value by investor type.

----------------------MARKET SNAPSHOT @ 0207 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG S&P 500 1138.7 1.4% 15.730 USD/JPY 90.43 -0.01% -0.010
10-YR US TSY YLD 3.7005 -
0.015 SPOT GOLD 1135.08 0.11% 1.280 US CRUDE 81.9 0.49% 0.400 DOW JONES 10566.20 1.17% 122.06 ASIA ADRS 129.56 2.02% 2.57

MARKET SUMMARY > Wall St rallies on U.S. jobs data, consumer credit > Crude gains towards $82/bbl, near 8-week high > Dollar rises to 2-week high vs yen as yen slides > TREASURIES-U.S. jobs optimism beats back bonds > Gold rises on firmer euro; palladium near 2-yr high



STOCKS AND FACTORS TO WATCH



- Singapore's Temasek Holdings has no concrete plan to sell its stake in Thai telecoms group Shin Corp but would consider selling part of it if a buyer came forward, an official at the Thai firm said on Friday.



- While foreign investors are piling into Thailand's stock market, foreign companies are less enthusiastic and look set to reduce investments from last year, suggesting a polarising political crisis may be taking its toll.



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($1 =32.58 Baht)
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