BANGKOK, Feb 5 — Southeast Asian stocks edged higher today, helped by technical-led buying and overnight gains in US indexes, with Thai shares cautiously rebounding from the previous session’s fall amid caution over political risks.

In Bangkok, the benchmark SET index was up 0.7 per cent at 1,285.85 as investors picked shares of exporter Charoen Pokphand Foods and dividend-yielding Advanced Info Service.

The gauge dropped 1.2 per cent yesterday due to selling by foreigners as the election on Sunday failed to resolve the country’s political problems.

Broker Krungsri Securities said the SET index’s move above a key support of 1,275 boded well for a technical rebound to its previous high of 1,295, with the baht’s appreciation supportive to stock market sentiment.

“Although foreign outflows due to QE tapering will act as a headwind for the SET, we expect it to recover gradually because of its inexpensive valuation,” the broker said in a report.

The SET has fallen more than 10 per cent since November to today, underperforming most others in the region and reflecting concerns over the impact of protracted political risks to the economy.

Southeast Asian markets were helped by a rebound in US stocks yesterday, with all the major indexes, the Dow Jones industrial average, S&P 500 and the Nasdaq Composite ending up.

Singapore’s Straits Times Index edged up 0.2 per cent, with shares of United Overseas Bank and Keppel Corp recovering from recent losses.

The index had fallen more than 3 per cent over the past four sessions, hitting 14-month lows yesterday and leading regional falls due to weak sentiment in the US.

Broker NRA Capital said the gains could be short-lived.

“Though there could be some momentary recovery today, we think upside will be capped by profit-taking as there is still pressure on the downside,” it said in a report.

Indonesia’s index rose 0.4 per cent, recouping some losses earlier this week. Stock exchange data showed foreign investors were buying into large caps such as Semen Indonesia and Telkom Indonesia.

Malaysia was up 0.4 per cent, coming off a three-month low hit yesterday. The Philippines gained 0.4 per cent after the consumer price index for January rose in line with forecasts.     

Vietnam was closed for the country’s Lunar New Year festival, and will reopen on February 6. — Reuters