Thai share prices climbed 0.38 percent higher on Tuesday as regional markets began to rebound after plunging one day earlier on fears over rising US interest rates, dealers said.
They also said that while the Thai market followed regional trends, it was also propped up by a stronger baht, which was active in morning trading, and a slowdown in stock dumping by foreign investors.
The Stock Exchange of Thailand (SET) composite index inched up 2.77 points to 727.21, while the blue chip SET 50 index rose 2.95 points to 504.03.
Losers slightly outpaced gainers 168 to 163 and 110 stocks were unchanged with 2.7 billion shares worth 15.3 billion baht (402 million dollars) traded.
The Thai baht closed Tuesday at 38.19-24 to the dollar, compared with Monday's 38.39-42.
Against the euro, the Thai currency closed at 49.06-15 compared with 48.95-49.00.
The stock market's performance was in line with analysts' expectations following Monday's tumble of 2.93 percent due to anxiety over US interest rates and poor performance in other countries, such as India and Japan.
"Because the regional market rebounded in the afternoon, the Thai market also rebounded slightly," said Wiriya Lappromrattana, head of research at Kiatnakin Securities.
She expected the market to continue bouncing back well into tomorrow's trading despite lingering worries.
"The market is also rebounding because the currency has appreciated," said Sukit Udomsirikul, senior market analyst at Siam City Securities.
He also said that investors are picking up stocks dumped by others who panicked in Monday's trading.
"The market is bargain-hunting and reducing the selling pressure," Sukit explained.
Shares in Thailand's top energy firm PTT fell 2.00 to 244.00 baht, but its subsidiary PTT Exploration and Production spiked 1.00 to 110.00.
Top lender Bangkok Bank gained 1.00 to 110.00, while Thai Airways International stayed flat at 45.50.