Thai stocks rose 1.3 percent to their highest close in more than a month on Monday as hopes of a year-end rally boosted bargain hunting and analyst reports boosted construction firm Italian Thai. The benchmark Stock Exchange of Thailand composite index rose 8.5 points at 657.25, its highest close since October 22.
The big-cap SET50 was 1.45 percent higher at 46.13 points and turnover rose to 20.7 billion baht ($525 million) from Friday's 14.37 billion baht.
The market rallied in late trade on rising foreign buying and the broader market sentiment was supported by expectations the market would rise toward the end of the year and go on rising ahead of a general election due in February, dealers said.
"Foreign buying was still active," said Kim Eng Securities strategist Pongpan Apinyakul.
Foreign funds have been drawn to the Thai market by the strengthening of the baht against the dollar. The Thai currency traded at around 39.50/52 per dollar at 1003 GMT, compared with 39.54/56 on Friday.
Banks would lead the market up and the main index would rise to 700 points this year, Pongpan said.
Shares in Siam City Bank, the most active, rose 3.3 percent to 25 baht and number one Bangkok Bank gained 0.96 percent to 105 baht, sending the bank sub-index up 2.4 percent.
Shares in Italian-Thai rose 2.8 percent to near a week high of 9.2 baht after at least seven brokers reaffirmed a "buy" rating on the stock following an analyst meeting.
Kim Eng Securities said the stock was undervalued compared with a 12 baht fair value, reflecting upbeat 2005 earnings expectations, boosted by the acquisition of India's Skanska
The broker said it expected the company to win three projects in the Middle East worth a combined $1.3 billion and big domestic projects like a power plant and an airport rail link.
Top mobile phone firm Advanced Info Service rose 1.56 percent to 97.5 baht after the company said it expected non-voice revenues of more than 10 billion baht in 2005, up 27 percent from this year.
Natural Park PCL rose 20.8 percent to 1.45 baht due to expectations its creditor Krung Thai Bank will consider allowing the property developer to delay repayment of a 1.7 billion baht loan.
Steel firms extended their gains from Friday, with hot-rolled steel coil maker Sahaviriya Steel Industries PCL rising 2.5 percent to 3.10 baht.
ITV PCL ended unchanged at 14.7 baht after the broadcaster told the exchange its two partners had requested a 10-month extension of their subscription rights to newly issued shares from December 31.
Broker Capital Nomura Securities said the share subscription delay would not affect ITV's core operations. It rated the stock a "buy", with a fair value of 19.1 baht, a potential upside of 29 percent.
Audio and video cassette maker BNT Entertainment dropped 18.6 percent to 0.48 baht after the firm said it planned a rights offering at a lower-than-market price.
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