Thai share prices closed 1.02 percent higher on Monday, breaking the 700-point mark as investors anticipated no change to interest rates later this week, dealers said. They said investors also chased gains in blue chip stocks as oil prices dropped amid easing concerns over Iran's nuclear ambitions.
The Stock Exchange of Thailand (SET) composite index rose 7.09 points to 703.53 and the blue chip SET-50 index gained 5.69 points to 493.66. Gainers led losers 211 to 103 with 112 stocks unchanged on turnover of 2.35 billion shares worth 11.83 billion baht (315 million US dollars).
The Thai baht closed at 37.35-38 to the dollar Monday, up from Friday's 37.49-53. Against the euro, the Thai currency finished at 47.88-48.15 from 48.04-10 last week.
"Investors anticipated interest rates would be maintained," said Sukhbir Khanijoh, a stock analyst at Kasikorn Securities. The Bank of Thailand's rate-setting committee is expected Wednesday to leave its key interest rate unchanged at an eight-year high of 5.00 percent, citing easing inflation pressure. Inflation in August dropped to a 14-month low of 3.8 percent on lower fuel prices and decreasing food costs.
Blue chip stocks rallied Monday after oil prices dipped below 70 dollars a barrel as tensions eased over Iran's nuclear enrichment program, Sukhbir said, adding that energy stocks remained static.
Thailand's top energy firm PTT closed unchanged at 238.00 baht and its subsidiary PTT Exploration and Production lost 1.00 to drop to 111.00. The country's top lender Bangkok Bank gained 3.00 to end at 108.00, while the third-largest lender Kasikorn Bank rose 2.50 to 65.50. Thai Airways International slipped 0.50 to 44.00, and Thailand's largest mobile operator, Advance Info Service, added 3.00 to 93.00. The country's leading industrial conglomerate Siam Cement jumped 4.00 to 222.00.