Thai stocks rose nearly two percent on Friday as interest rate and earnings optimism bolstered buying of big-cap bank stocks and a drop in oil prices lifted broader market sentiment, analysts said. The benchmark Stock Exchange of Thailand composite index rose 12.40 points to 639.74, its highest close since November 3, and the big-cap SET50 was 2.39 percent higher at 44.91 points.
Turnover more than doubled to 24.7 billion baht ($611 million) from Thursday's 11.47 billion baht.
Investors drove bank stocks up 2.9 percent as they lagged the overall market, analysts said.
The bank sector index had fallen 18.8 percent this year, underperforming the main index, which had fallen 17 percent.
Buying into big banks on expectations rising interest rates will boost their earnings in the current quarter sent shares in Siam Commercial Bank, the most active, up 4.3 percent and Kasikornbank 4.57 percent higher. Bangkok Bank rose two percent.
Dealers and analysts also attributed the strong market rise to gains on other Asian bourses and a drop in oil prices. US light crude was at $47.45 a barrel at 0957 GMT.
The energy sub index rose 2.4 percent, with Thai Oil, up 1.7 percent, and PTT, up 2.4 percent, among the most active stocks.
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