Bank of Thailand rate cut hope may boost Thai shares

BANGKOK, Jan 14 (Reuters) - Thai shares are set to rise on
Wednesday, taking a pause from recent sharp falls because of
optimism the central bank will cut interest rates to boost
economic growth, analysts said.

A sharp drop in inflation and Thailand's fast-deteriorating
economy should prompt another big rate cut by the Bank of
Thailand after its surprise one-point cut in December, a
Reuters poll showed. [nSP379607]

The announcement is due around 2:30 p.m. (0730 GMT), after
the central bank policy committee meets.

"I see the market coming back up possibly, with most blue
chips rebounding after several days of sharp falls," said
Puwadol Lapudomsuk at Asia Plus.

"People will also be keeping an eye on the BoT's rate
meeting since expectations of a rate cut are high," he said,
expecting resistance on the main index .SETI at 445 and
support at 425.

On Tuesday, the benchmark index dipped 4.2 percent to
433.81, its lowest close since Dec. 12, as investors continued
to dump oil stocks due to a sharp drop in oil prices amid
concern over weaker quarterly earnings at PTT PTT.BK and its
subsidiaries.

Foreigners offloaded Thai shares worth a net 1.01 billion
baht ($29 million), their fifth straight day of selling.

Click [TH/TRADING01] for cumulative trading value by
investor type.
----------------------MARKET SNAPSHOT @ 0211 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG
S&P 500 .SPX 871.79 0.18% 1.530
USD/JPY JPY= 89.46 0.03% 0.030
10-YR US TSY YLD US10YT=RR 2.3174 -- 0.020
SPOT GOLD XAU= 822.25 0.15% 1.200
US CRUDE CLc1 38.93 3.04% 1.150
DOW JONES .DJI 8448.56 -0.30% -25.41
ASIA ADRS 90.92 -1.25% -1.15
-------------------------------------------------------------
MARKET SUMMARY > US oil prices rise post-settle on cold, Saudi
cuts [O/R] > US STOCKS-Blue chips fall on corporate
earnings gloom [.N] > FOREX-Dollar at 1-month high vs euro as
ECB move looms[USD/] > Prices up as stock weakness sustains
safety bid [US/] > PRECIOUS-Gold slips despite firmer
euro, off 1-month low[GOL/]

STOCKS AND FACTORS TO WATCH

- Thailand's new government decided to extend financial
assistance and other relief measures for low-income workers and
state employees hurt by economic problems linked to the global
financial downturn. [nBKK53468]

- The value of new corporate debt issues in Thailand could
fall by 30 percent this year due to the global credit crisis,
but safe-haven government bonds should still attract buyers on
the back of lower interest rates. [nBKK350100]

- Ch Karnchang CK.BK

The firm tendered the lowest bid to build a 12 km (7.5
mile) electric train line, part of Bangkok's 36 billion baht
($1 billion) "Purple Line" mass transit project, a government
agency said. [nBKK355357]

- For the Thai press digest click on [ID:nBKK373683]

- For Thailand's IPO diary click on <TH/IPOMENU>

- For Thailand's stock exchange news click on [TH-SET]

- For Thailand corporate earnings: [TH-RES-RTRS]

- For Thailand economic forecast: [POLL-ECI-TH-RTRS]
($1=34.84 Baht)
(Reporting by Ploy Chitsomboon; Editing by Alan Raybould)