Thai share prices closed 1.70 percent higher on Thursday, rebounding to a pre-coup level thanks to buying of stocks linked to telecom giant Shin Corp, dealers said.
They said a report that Singapore's Temasek Holdings might reduce its stake in Shin Corp in a bid to resolve a controversy over its alleged violations of Thai ownership rules sparked buying across the board. The Stock Exchange of Thailand (SET) composite index rose 11.85 points to 709.67 and the blue-chip SET 50 index gained 7.73 points to 495.74.
Gainers far outnumbered losers 262 to 87 with 105 stocks unchanged on turnover of 2.9 billion shares worth 18.0 billion baht (480 million dollars). The Thai baht closed at 37.50-52 to the dollar, almost unchanged from Wednesday's 37.49-52. Against the euro, the Thai currency finished at 46.91-47.18 from 47.03-10. "Investors bought Shin Corp.-linked shares following the report, boosting the overall market," said Thanomsak Saharatchai, a senior market analyst at Capital Nomura Securities.
The English-language Thai daily Nation said Temasek might reduce its holding in Shin Corp. to 49 percent from 96 percent, as Thai authorities were to investigate whether the state-linked Singapore investment firm's takeover of Shin Corp. violated laws here.
Shin Corp., which was created by ousted premier Thaksin Shinawatra, also runs Thailand's biggest mobile phone operator, Advance Info Service, Thai broadcaster iTV and satellite operator Shin Satellite.
But under Thai rules, foreigners can own up to 49 percent in Thai telecom and communication firms. With Temasek-led investors controlling 96 percent stake in Shin Corp., the mobile and broadcaster firms could lose concessions from the government.
"If the report is true, these Shin Corp.-related companies will continue to receive concessions from the government and stay in business. That's why investors bought shares," Thanomsak said. Thailand's largest energy firm PTT rose 2.00 to 216.00 baht but its subsidiary PTT Exploration and Production was flat at 106.00. Shares in Advance Info Service jumped 7.00 to 92.50 and iTV rose 0.36 to 3.04. Thai Airways International rose 0.75 to 47.75.