(RTTNews) - The Thai stock market has finished lower now in four of the previous five sessions, shedding more than 23 points or 5 percent during that span. The Stock Exchange of Thailand is closing on support at 450 points, but now analysts are warning that the market could fall through that level at the opening of trade on Tuesday.

The global forecast for the Asian markets remains broadly pessimistic as investors look to consolidate their positions at the start of the Q4 corporate earning season amidst ongoing bad news and a weak outlook. The European and U.S. markets finished with significant losses, and the Asian bourses are tipped to follow suit.

The SET finished sharply lower on Monday, suffering from heavy losses among the energy stocks. For the day, the index dropped 6.26 points or 1.36 percent to close at 452.80. Volume was 2.953 billion shares worth 9.352 billion baht. Among the decliners, energy giant PTT fell 5.08 percent, while subsidiary PTT Exploration and Production slid 2.8 percent and Thai Oil shed 4.5 percent.

The lead from Wall Street is negative once again as stocks saw some further downside over the course of the trading on Monday after showing a steep decline in the previous session. The continued weakness came as investors reacted to some negative corporate news and saw little to support a long-term rally.

Alcoa (AA) helped to lead the markets lower after Deutsche Bank downgraded its rating on the aluminum producer ahead of the release of its quarterly and full-year financial results after the close of trading - which came in below expectations with a $1.19 billion loss. Deutsche Bank said Alcoa’s net debt position of about $9 billion and near-term negative free cash flow makes a rebound unlikely in the near future.

The release of quarterly results from Alcoa is seen as the unofficial start of the earnings season, as the aluminum producer is traditionally the first Dow component to report its results. Dow component Citigroup (C) also suffered a notable loss amid reports that the financial services giant is weighing a sale of a stake in its Smith Barney brokerage business to Morgan Stanley (MS).

In other news, President-elect Barack Obama asked the outgoing administration of President George W. Bush to request that Congress release the second half of the $700 billion financial relief fund and promised lawmakers that he would step up oversight of the program as the remaining money is distributed. The White House confirmed that Obama has asked President Bush to formally request Congressional approval of the use of the funds and noted that the president has agreed to comply, as Bush himself promised to do earlier in the morning.

The major averages moved well off their lows going into the close, although they remained firmly negative. The Dow closed down 125.13 points or 1.5 percent at 8,474.05, the Nasdaq closed down 32.80 points or 2.1 percent at 1,538.79 and the S&P 500 closed down 20.09 points or 2.3 percent at 870.26.

In political news, the new Thai coalition cabinet led by Prime Minister Abhisit Vejjajiva won 20 out of the 29 parliamentary seats to which by-elections were held Sunday, and thus consolidated its position. Abhisit’s Democrat Party won seven seats and its allies won 13, and opposition parties having allegiance to exiled former Prime Minister Thaksin Shinawatra won nine seats.

Monday’s results would consolidate the new cabinet’s hold on Thai politics, as it enhances the coalition’s majority in the 480-member parliament to 48 seats. The results gathered by the media are yet to be certified by the Election Commission and officially announced within one month.

Abhisit was elected Thailand’s new Prime Minister last month succeeding Somchai Wongsawat, who was forced to step down after a court ruling that disbanded the ruling People Power Party (PPP) over a vote-rigging case, and banned him, along with 36 party office-bearers, from participating in politics for five years. The by-elections were held to those seats vacated by the indicted MPs.

Polling to elect a new governor of Bangkok was also held Sunday, with reports suggesting victory for Democrat Party candidate Sukhumbhand Paribatra.

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