Thai shares higher

Thai share prices closed 1.46 percent higher on Wednesday, led by foreign investors returning to the market as Thailand's government considers an economic stimulus plan, dealers said. They said sentiment has improved amid expectations that the new elected government would boost spending on infrastructure projects and aid to rural Thailand.
The Stock Exchange of Thailand (SET) composite index rose 11.92 points to 829.41 and the blue chip SET-50 added 9.79 points to 599.12. Gainers led losers 185 to 142, with 124 stocks unchanged on turnover of 3.7 billion shares worth 26.28 billion baht (796 million dollars). The Thai baht closed at 33.88 against the dollar, compared to Tuesday's 32.88-89. Against the euro, the Thai unit was quoted at 47.86-93 from 47.67-72.
"The market today was in an extension stage of the rebound led by foreign investors," said Adisak Kammool, senior strategist at KGI Securities. Share prices gained in telecom and banking sectors, he said.
Investors are hoping the new government's economic policy will help boost growth in the country's economy, Adisak said. "Those factors help the market maintain positive sentiment, although investors are still afraid of a recession over the US economy," he said.
Some investors decided to stay on the sidelines after the new finance minister and the central bank on Tuesday failed to agree on whether to lift tough currency controls designed to limit the baht's rise, the analyst said. The controls spooked foreign investors and caused the biggest one-day drop in the Thai stock market in late 2006, with losses worth 23 billion dollars.
Many exemptions have since been made to the currency rules, but the general policy remains in place. Thailand's biggest energy firm PTT rose 6.00 baht to 330.00 and its subsidiary PTT Exploration and Production gained 3.00 to 151.00. Another top energy firm Banpu rose 16.00 to 472.00.
Thailand's largest lender Bangkok Bank added 1.00 to 125.00. The kingdom's biggest mobile phone operator, Advanced Info Service, surged 8.50 at 107.00. Shares in Thai Airways International slipped 0.25 at 33.75.