Thailand's main stock index hit a new eight-month high on Friday as shares of PTT rallied after the appointment of new directors, while most others in Southeast Asia fell in line with Asian stocks amid doubts about the strength of the US economy. Thailand's largest energy firm PTT has appointed six new directors to replace those who resigned as part of the military government's attempt to reform and restructure the state enterprise system.
PTT shares rose 1.3 percent to 312 baht, their highest close in almost two months. The stock had been under selling pressure since late May due to concerns that the energy reform plan could hurt earnings of energy companies. "The new directors clearly helped improve sentiment on PTT's stock and expectations on the reform plan are more positive now. Buying in PTT shares was quite healthy after the news," said Pichai Lertsupongkij, a senior analyst at broker Thanachart Securities.
The SET index closed at 1,483.24, the highest since October 18 and added 1.1 percent on the week for a second straight week of gains. Foreign investors bought shares worth a net $59 million, their first net purchase in 14 sessions. Vietnam and the Philippines outperformed the region, rising 3.2 percent and 1.7 percent on the week, respectively, while Singapore, Malaysia and Indonesia were little changed. Shares of energy-related firms rose across the region as investors boosted exposure due to strong crude prices. Philippine energy company First General Corp and Indonesia's palm plantation firm Astra Agro Les Tari led the gainers.
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