Thai stocks ended higher for the second straight day on Monday as shares in big-cap telecom firms rose on renewed hopes of sectoral reform, but profit taking in brokerage shares which rose in early trade limited the rise.
The benchmark Stock Exchange of Thailand (SET) composite index rose 3.87 points, or 0.55 percent, to 704.46 points. The big-cap SET 50 index was up 0.84 percent at 46.84 points.
Turnover rose to 12.6 billion baht ($319 million) from 13.8 billion baht on Thursday. The market was closed on Friday for a Buddhist holiday.
"Investors were quite cautious because of the introduction of measures to curb speculation and with this thin volume, I expect to see the market in range-bound trade again tomorrow," said analyst Charoen Iampathanatham of IB Securities.
The index was likely to move between 705 and 692 points on Tuesday, Charoen said.
Fund flows focused on telecoms stocks on Monday, when the Senate was to consider the list of candidates for the National Telecommunications Commission (NTC), raising hopes of a long-delayed liberalisation of the sector.
"It gives a direction to telecom liberalisation," said analyst Wiriya Lappromratana of Kiatnakin Securities.
The NTC is expected to be established as an independent regulator by the end of this month to ensure fair competition and issue new licences.
Investors picked up shares in Advanced Info Service, Thailand's largest mobile phone firm. The second most actively traded stock rose 2.35 percent to 87 baht and helped send the telecom sector 1.56 percent higher.
AIS is expected to benefit from the launch of an interconnection fee regime in 2005, replacing a system in which firms pay 10 to 43 percent of revenue to state agencies for the right to operate a network.
Shares in telecom firm United Communication Industry, the fifth most actively traded, rose 0.52 percent to 48.25 baht on expectations its Total Access Communication (TAC) would benefit from the regulatory changes.
Some investors stayed on the sidelines as a new ban on net settlement and margin loan transactions took effect.
The ban covers stocks with unusually high turnovers or unusually high price-to-earning ratios or shares in firms which posted a net loss.
"Other than thin volume, the ban has not hit sentiment much. Bargain hunters were still active in battered bank shares and brokerage shares," Wiriya said.
Bank stocks rose 0.58 percent with shares in Bangkok Bank, Thailand's biggest bank, up 1.6 percent at 95.5 baht. Its shares have fallen over the past two weeks with a plan to sell new shares raising concerns about dilution effects.
Sentiment on brokerage shares brightened in early trade on expectations the SEC may decide this week not to liberalise commission fees, but profit taking sent the sector to close 0.43 percent down.
The third most actively traded stock, Seamico Securities PCL, the number two brokerage by market share, fell 0.85 percent to 11.6 baht after rising to 11.8 baht in early trade.
Market regulators are due to decide on Friday whether to liberalise commission fees after the current minimum commission fee of 0.25 percent expires in January next year.
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