Bangkok--26 Sep--Phillip Market Trend: Sideways trading seen w/ possible S/T rebound; downside seems limited Yesterday, the Thai stock market witnessed a mild correction on profit taking in the energy sector after oil prices steadily dropped off. We still believe that downside seems to be limited, as the positive political mood towards the general election by year-end should help temper market weakness. Under this circumstance, the SETI is expected to remain volatile and trade sideways today, waiting for fresh market-moving factors including US and Thai economic data to be released late this week and the upcoming cabinet reshuffle. For today’s investment strategy, Selective BUY still remains in play with a focus on fundamentally sound stocks in the banking and energy sectors. Short-term trading on facts is also possible like BAY (Fitch Ratings upgraded BAY’s outlook to ‘positive’), SAMART (Overseas investment restructuring bodes well for SAMART), TTA (The Baltic Exchange’s Dry Freight Index (BDI) has been on a steady rise, up by 133 points), and SATTEL (iPSTAR signs deal with TNR Telecoms to tap into Filipino market).Resistance: 840-842 Support: 828-824FACTORS AFFECTING THE MARKET: + US stocks gained 19.59 points on Tuesday after growing optimism that US Federal Reserve would make another rate cut to offset weak economic numbers (consumer confidence index and sales of previously owned homes) and profit warnings from two leading retailers home improvement chain Lowe’ Cos Inc and Target Corp. - US light crude for Nov delivery fell US$1.42 on the NYMEX to settle below the US$80/barrel mark on Tuesday while oil and gas production in the US Gulf of Mexico nearly recovered to normal levels following partial shutdowns in late last week on concerns over storm. - Swiss National Bank (SNB) said the bottleneck for interbank loans might turn into disaster for the global financial system. Central banks were needed to speed up interest rate cuts, regardless of price stability. - The International Monetary Fund (IMF) warned that the fallout from the current global credit crunch might crimp global economic growth.