(RTTNews) - The Thai stock market on Friday finally saw an end to the winning streak that had stretched to eight sessions, thanks to the broadly positive sentiment following a resolution to the political uncertainty that had gripped the country for many months. The Stock Exchange of Thailand fell back below 450 points, and analysts expect that there could be further profit taking when trade resumes on Monday.

The global forecast for the Asian markets is mixed, with positive sentiment expected to be generated by the U.S. auto industry bailout - at least at the opening. But the markets are predicted to see another session of tight trading ranges, with perhaps a touch of downside on more corporate weakness. The European markets were uniformly lower on Friday, while the U.S. bourses finished mixed, and the Asian markets are expected to fall in between the two.

The SET finished moderately lower on Friday, thanks to an easing among the energy stocks and the financials - although the losses were mitigated somewhat by gains in thecement sector.

For the day, the index dropped 4.71 points or 1.04 percnet to close at 447.01. Volume was 3.295 billion shares worth 11.007 billion baht. Among the gainers, Siam Cement was up 0.9 percent, while Siam City Cement added 2.4 percent and TPI Polene jumped 19.1 percent.

For the day, the index lost 3.48 points or 0.26 percent to close at 1,348 after trading between 1,332.22 and 1,352.14. Volume was 3.593 billion shares worth 1.97 trillion rupiah. Among the top decliners, Bumi Resources fell 2.2 percent and Bank Mandiri dropped 3.5 percent.

The lead from Wall Street is inconsistent as stocks showed a strong upward move in early trading on Friday on the news of a government bailout of the auto industry, but the markets then gave back some ground over the course of the day. The major averages eventually ended the session turning in a mixed performance.

The initial strength in the markets came after the Bush administration revealed that it is stepping in to bail out the struggling U.S. auto industry, allowing for short-term government loans to be drawn from the $700 billion financial rescue package. The loans provide $13.4 billion to the automakers, with another $4 billion possible in a few months. The companies are required to show that the loans are helping them become viable businesses, and the government support comes with a number of restrictions.

While President Bush said that bankruptcy could be an option for the automakers under normal market functioning, he suggested that current economic conditions do not allow for an orderly bankruptcy of the industry.

President-elect Barack Obama expressed support for the plan, saying, “Today’s actions are a necessary step to help avoid a collapse in our auto industry that would have devastating consequences for our economy and our workers.” However, Obama was careful to note that the responsibility to use the funds correctly now rests squarely on the shoulders of the automakers.

Nonetheless, the positive sentiment was partly offset by news that Standard and Poor’s lowered the credit ratings for several major U.S. and European financial institutions, including Citigroup (C), Bank of America (BAC), and Morgan Stanley (MS). S&P said that the lower credit ratings reflect its more negative view of the significant pressure on large, complex financial institutions’ future performance due to increasing industry risk and the deepening economic slow-down.

The major averages ended the session on opposite sides of the unchanged line, with the Dow posting a modest loss. While the Dow closed down 25.88 points or 0.3 percent at 8,579.11, the Nasdaq rose 11.95 points or 0.8 to 1,564.32 and the S&P 500 closed up 2.60 points or 0.3 percent at 887.88.

In economic news, the Bank of Thailand said on Friday that foreign exchange reserves stood at $107.42 billion as on December 12, compared with $105.77 billion as on December 5. At the same time, gold reserves increased to $2.23 billion from $2.02 billion seen in the previous period. Meanwhile, country’s reserve position in the IMF reached $209.30 million, showing an increase from the $204.77 million. Foreign currency reserve assets totaled $10.48 billion, up from $10.34 billion.

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Posted in Categories: Eurozone, Releases, Stocks, USA.

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