Bangkok--15 Oct--Phillip Market Trend: Upside possible but limited w/ profit taking risks at any time Foreign-fund flows remain the key factor that dictates market direction this time round. Local factors seem to have been little changed. We saw small market correction last Friday following steady gains. On the technical front, the market now looks overbought. However, last Friday’s gains on Wall Street and record oil prices brightened regional mood in this early morning trade to a certain extent. Energy stocks should still take the lead to move the market higher today, but we believe upside seems to be limited with possible risks that profit taking will kick in at any times. Overall, we expect the market to start moving sideways.Resistance: 893-898 Support: 880-876FACTORS AFFECTING THE MARKET: + NYMEX crude futures for Nov delivery on the NYMEX closed at a record high of US$83.69 a barrel last Friday, up 63 cents after US government report showed surprisingly strong US retail sales and benign inflation, reflecting that oil demand barely budged despite economic slowdown. + US stocks settled up 77.96 points last Friday after US Commerce Ministry’s report showed that US retail sales, a crucial motor of economic growth rose a stronger-than-expected 0.6% in Sep, indicating strength of consumer spending while the core Producer Price Index (PPI), excluding volatile food and energy edged up only 0.1% in Sep, halving analyst forecast. The bright outlook for McDonald’s Corp also gave Wall Street a boost. + The Thai economy staged a strong recovery in 3Q07 boosted by a much stronger flow of foreign direct investments, while the Board of Investment (BoI)’s net investment applications for 9M07 were worth more than Bt440b, up 23%, according to Deputy Prime Minister and Industry Minister Kosit Panpiemras. He also expected both public and private investments to pay off in 2Q08. - The Bangkok Mass Transit Authority (BMTA) said that bus fare hikes would take effect today after the central transport committee approved the increase in bus fares on Oct 9. Fares for non-air conditioned buses would be raised to Bt8.50 while fares for mini-buses would be increased to Bt7. Fares for air-conditioned buses would be raised by Bt1 per sector.