Thai share prices closed 0.54 percent higher on Thursday in speculative buying after the Thai baht renewed its rally against the dollar, dealers said. The Stock Exchange of Thailand (SET) composite index rose 3.55 points to 660.71 points, and blue chip SET 50 index was up 1.77 points at 462.52.
Gainers outnumbered losers 231 to 76 and 115 stocks were unchanged on turnover of 2.8 billion shares worth 10.8 billion baht (301.2 million dollars). The Thai baht continued to climb against the dollar to close at 35.75-79 baht to one dollar from Wednesday's 35.92-96. Against the euro, the Thai unit closed at 46.27-53 baht to one euro compared to Wednesday's 46.70-76.
"The market rallied almost at the end of the afternoon session because investors speculated that foreign investors would not abandon the Thai market after the baht renewed its upward trend against the dollar," said Sittidath Prasertrungrang, analyst at SEAMICO Securities. The Bank of Thailand last month introduced draconian capital control rules, with the aim of halting the soaring value of the baht, which they said was damaging exports.
The introduction of reserve requirements, which effectively lock up for a year 30 percent of any fund inflows coming into Thailand for financial investments, sent the stock market nose-diving a record 15 percent in December. Sittidath said the two most active sectors were banking and energy, while there was also selective buying in the property sector.
"Today's gain is not significant as the trading value was thin. I expect by next week the index will peak at between 665 to 670, and then the index will enter a correction," Sittidath said.
Bangkok Bank added 1.00 baht to close at 109.00, while Kasikorn Bank was up 0.50 to 60.50. Siam Commercial Bank was unchanged at 60.00. PTT Plc stayed put at 206.00, as did its subsidiary PTT Exploration and Production, which closed at 94.50. Thai Airways International was also unchanged at 42.25, but troubled Airports of Thailand rose 1.00 to 52.50.
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