Thai stocks rose 0.86 percent on Thursday as gains on other Asian bourses and signs of sustained fund inflows encouraged investors to buy shares in the telecoms and banking sectors, analysts said. The benchmark Stock Exchange of Thailand composite index rose 5.64 points to 661.08, its highest since mid-October. The big-cap SET50 was 1.04 percent higher at 46.48 points.
Turnover rose to 25.44 billion baht ($645 million) from Wednesday's 19.66 billion baht.
"We've got the positive sentiment of regional markets and continued foreign buying. Telecom buying was pretty heavy," said Bualuang Securities analyst Pongrat Ratanatavanananda.
Profit taking would limit any strong rally on Friday, when resistance on the main index should be at 670 points and support at 660-655 points on Friday, Pongrat said.
Sustained fund inflows were reflected in the strengthening baht which traded at a 7-month high around 39.11/15 to the dollar at 0956 GMT versus 39.30/33 on Wednesday.
The telecommunications index, the most active and top gainer, rose 3.05 percent on expectations that reform of the sector, involving the implementation of interconnection charges, would happen next year.
Analysts said the reform would reduce costs and benefit all telecoms operators. Top mobile phone firm Advanced Info Service rose 4.08 percent to 102 baht, while Shin Satellite rose 1.1 percent to 17.9 baht.
Fixed-line phone firm True Corp PCL bounced back from an early fall to rise 7.5 percent to 7.9 baht after the firm said it had completed a plan to sell 398 million new shares in a private placement.
Bank shares rose 0.95 percent on expectations that the Bank of Thailand will keep its key policy rate unchanged when it meets on December 15 because the stronger baht is attracting foreign players who want to park their money in Thai assets.
Number three Kasikornbank rose 2.1 percent after the bank said most commercial banks were likely to raise interest rates in the second quarter of next year.
Shares in Tapaco PCL, a manufacturer of plastic products, fell below their initial public offering price of 12.50 baht on their debut on the Market for Alternative Investment.