Thai stocks closed at a two-month high on Wednesday as investors bought shares in financial companies and the market debut of a steel pipe maker boosted trade.
Samchai Steel Industries PCL jumped 95 percent to 19.50 baht from an initial public offering of 10 baht on their market debut as investors bet on a construction boom and higher prices for its steel pipes.
The benchmark Stock Exchange of Thailand composite index rose 10.39 points, or 1.59 percent, to 662.28 points, its highest close since mid-July. The big-cap SET 50 was 1.6 percent higher at 45.62 points.
Turnover surged to 36.1 billion baht ($873.9 million), a five-month high, from 28.4 billion baht on Tuesday. Last week, turnover averaged 10 billion baht.
"The market is on positive momentum. With more than 20 billion baht in daily turnover, this is a sign that investor confidence is returning," said Nomura Securities analyst Sukit Udomsirikul.
He expected resistance on the main index this week at 670 points and support at 640 points.
"After many share prices had already priced in the negative factors, now they are cheap enough to spur foreign investors to snap up blue chips," Sukit said.
Foreign investors bought Thai shares worth a net 1.7 billion baht on Tuesday, taking their total net buying over 15 days to 12 billion baht.
Foreign investors were eyeing blue chips ahead of a conference to promote Thai stocks next week aimed at luring overseas fund managers, analysts said.
The Stock Exchange of Thailand will hold the "Thailand Focus" conference to promote Thai companies from September 20 to 23.
Bank stocks led Wednesday's gainers, rising 3.4 percent on hopes non-performing loans will drop below 10 percent over the next two years as the government plans to let its asset management corporation help manage their non-performing assets.
"Investors are still playing on NPL news," said KGI Securities analyst Hataiporn Jirajariyavech.
Bangkok Bank, Thailand's largest commercial bank, was 3.7 percent higher at 98.50 baht, near a five-month high.
Krung Thai Bank, the second-largest bank, soared six percent to 8.45 baht, while number three Kasikornbank rose 2.11 percent to 48.50 baht.
Finance companies rose 2.2 percent, led by a 3.2 percent rise by top securities firm Kim Eng Securities to 40.75 baht and a 1.8 percent rise to 85.50 baht by Asia Plus Securities
The sectoral outlook is boosted by rising market turnover which will raise the sector's earnings in the third quarter.
Expectations the government would resume anti-dumping duties on steel products suspended in March until September 19 continued to boost shares in steel companies.
Sahaviriya Steel Industries was up 3.5 percent at 29.25 baht and Nakornthai Strip Mill rose 4.6 percent to 2.06 baht.
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