Bangkok--10 Oct--Phillip Market Trend: Energy & overseas sentiment to help SETI extend gains today in a sideways up patternIt seems as if foreign buying interest has lent support to the Thai stock market. Yesterday, foreign investors continued their buying spree worth another Bt1.6b. We see the energy sector as another driving force that helps underpin upside momentum on strong third-quarter earnings expectations. On the economic front, the Bank of Thailand’s Monetary Policy Committee is expected to keep its key policy rate unchanged at 3.25% at its meeting today. It is therefore unlikely to have any impact on the market. The surge in global oil prices and overnight gains on Wall Street should help the market extend further gains today, in our view. However, near-term technical outlook suggests risks that the SETI will enter a period of consolidation. For today’s investment strategy, selective trading remains in focus and it is good to take partial profits near the resistance. Resistance: 870-876 Support: 860-856 FACTORS AFFECTING THE MARKET: + NYMEX crude for Nov delivery rose US$1.24 to over US$80/barrel again on Tuesday following a drop in European oil product inventories and expectations of another rate cut by the US Federal Reserve, which further weakened the dollar and boded well for crude oil prices in the dollar terms. + The Dow industrials surged 120.80 points after minutes from the Federal Reserve’s last meeting showed inflation expectations were contained, leaving open the question of whether another rate cut was drawing nigh. + Ford Motor Co and Mazda Motor Corp said they would build a second plant in Thailand to produce small cars (b-cars) as a base for global supply. Honda also planned to invest in eco-cars in Thailand. The total investment is estimated around Bt30b. - The Federation of Thai Industries expected the gradual increase in product prices, high oil prices and bus fee increases to boost living costs up by year-end while the lingering political uncertainty made people less willing to spend. The purchasing power was unlikely to increase as expected by the private sector by the end of the year. - Thailand’s Transport Ministry approved a fee hike for normal bus and mini-bus by Bt0.50, air-conditioned bus by Bt1 and inter-provincial bus by 3 satang/kg, effective Oct 15. 0 The Bank of Thailand’s Monetary Policy Committee is due to meet today. We expect the MPC to leave its key policy rate on hold at 3.25%.