Thai stocks rose 1.59 percent on Wednesday as concerns about the directions of domestic and US interest rates eased and stronger markets overseas boosted buying in energy and telecommunications stocks, analysts said.
The benchmark Stock Exchange of Thailand (SET) composite index closed up 10.24 points at 655.82, the big-cap SET 50 rose 1.98 percent to 44.86 and turnover surged to 20.35 billion baht ($499 million) from 12.34 billion baht on Tuesday.
Energy firm PTT rose 3.4 percent to 154 baht after dropping more than six percent over the previous five trading days due to fears a change in government policy would hit earnings.
The stock rebounded after the government said it would not order refiners to cut margins, but would change the method it used to calculate the subsidy it pays them.
Investors bought shares in PTT Exploration and Production, a 65 percent owned PTT unit, pushing them up 4.4 percent to 282 baht, as NYMEX crude tip-toed higher but stayed in a narrow trading range.
The new front-month September contract was 0.82 percent higher at $40.77 a barrel at 0952 GMT.
"Hedge funds were shifting their money from the oil market to currency and stock markets after Greenspan's comment and that boosted stocks in Asia, including Thailand," said Warut Siwasariyanon, head of research of Globex Securities.
US Federal Reserve Chairman Alan Greenspan said the US economy had entered a sustainable expansion that should weather a June slowdown and it was under no serious threat from inflation, allowing interest rates to rise at a measured pace.
The Thai central bank kept its record low key repurchase rate unchanged on Wednesday, but signalled an intention to adjust its long-standing accommodative monetary policy gradually.
Shares in the telecommunication sector rose 3.4 percent, led by a 0.63 percent rise by shares in Shin Satellite PCL to 15.9 baht on optimism about the firm's new satellite iPSTAR, a new source of income growth.
State-owned Krung Thai Bank PCL fell 5.4 percent to 10.7 baht as investors were disappointed by the bank's second quarter earnings, although it announced a return to profit, analysts said.
The bank reported losses from reserves for debt restructuring and losses from investments above expectations, said analyst Kavee Chukijkasem of Capital Nomura Securities.
Bank stocks rose 0.29 percent, helped by shares in Thailand's biggest bank, Bangkok Bank, which were up 1.58 percent at 96.5 baht on its good earnings outlook.
The bank reported a 58 percent rise in second-quarter profit due to strong loan demand in a booming economy and lower debt financing costs.