Thai stocks rose 2.7 percent to their highest close in more than five months on Monday as gains on Asia stocks and the imminent launch of long-term mutual funds buoyed optimism and triggered buying of blue chips.
The benchmark Stock Exchange of Thailand composite index closed up 17.9 points at 679.13, its highest finish since April 27.
The big-cap SET 50 rose 3.06 percent to 47.5 points and turnover was 30.3 billion baht ($733 million), up from 23.9 billion baht on Friday. "The market performed better than our expectations, mainly supported by gains in Asia stocks," said Kiatnakin Securities analyst Wiriya Lappromratana as Japan rose 2.68 percent and South Korean shares climbed 4.12 percent.
"The launch of long-term funds and expectations of good third quarter earnings all came as positive news and boosted shares like PTT and Banchak Petroleum to new highs," she said.
Top oil and gas firm PTT, the most active stock, rose 4.05 percent to 180 baht, their highest since January 6, and refinery Bangchak closed 9.8 percent higher at 18 baht, having hit 18.2 baht, their highest since June 1996.
Both firms were expected to report strong third quarter earnings due to high oil prices and the listing of PTT's refinery Thai Oil this month also boosted buying in PTT, Wiriya said.
The energy index rose 4.05 percent. "It looked like the market ignored high oil prices and the negative news about bird flu virus," she said as the bird flu epidemic claimed its 31st victim on Monday, a nine-year-old Thai girl who had contact with infected chickens at home. At 1007 GMT, US light crude was down 0.98 percent at $49.63 a barrel after rebels in Nigeria withdrew a threat to target oil operations.
Wiriya said the market could take a breather on Tuesday after rising for three consecutive days, over which the index rose 6.6 percent.
Another active stock was coal miner Banpu PCL, which rose 4.3 percent to 170 baht after Kiatnakin Securities said it expected the company to report a 161 percent rise in third-quarter net profit. It rated the stock a "buy". Mobile phone firm Advanced Info Service rose 2.8 percent to 110 baht after Kim Eng Securities maintained a "long-term buy" rating on the stock due to the firm's strong business outlook.
AIS shares dropped to 105 baht in early trade after the firm said it had 12.6 percent fewer net new subscribers in August, its fourth consecutive weak month.
The communications index rose 3.93 percent.
Shares in Thai Petrochemical Industry rose 4.9 percent to 8.55 baht on hopes that a plan to restructure its debts of nearly $3 billion would be approved at a creditor meeting on October 12, dealers said.
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