Thai share prices closed 0.80 percent higher on Friday as investors reacted positively to the country's easing inflation rate, which fell to a 14-month low of 3.8 percent in August, dealers said. They said investors chased gains in the banking, energy and property sectors.
The Stock Exchange of Thailand (SET) composite index rose 5.54 points to 696.44 and the blue chip SET-50 index gained 5.54 points to 487.97. Gainers far outnumbered losers 219 to 99 with 113 stocks unchanged on turnover of 3.1 billion shares worth 10.8 billion baht (289 million dollars). The Thai baht closed at 37.49-53 to the dollar Friday, little changed from Thursay's 37.55-57. Against the euro, the Thai currency finished at 48.04-10 from 48.25-29.
"Sentiment was upbeat as the latest inflation data were better than the market's forecast," said Pichai Lertsupongkit, a senior market analyst at Prudential Siam Securities. Thailand's inflation rate in August stood at 3.8 percent, which was lower than the market's estimate of 4.0 percent, thanks to easing fuel prices and a fall in food prices.
The figure marked a sharp fall from May when Thai inflation hit a seven-month high of 6.2 percent. While the inflation data spurred buying, the market failed to break the key 700-point level as investors were cautious ahead of a key US employment report due later in the day, Pichai said. Thailand's top energy firm PTT rose 2.00 to 238.00 baht and its subsidiary PTT Exploration and Production jumped 5.00 to 112.00.
The country's top lender Bangkok Bank was unchanged at 105.00, while the third-largest lender Kasikorn Bank edged up 0.50 to 63.00. Thai Airways International rose 0.50 to 44.50, and Thailand's largest mobile operator, Advance Info Service, added 0.50 to 90.00.