Thai share prices closed 1.02 percent higher on Tuesday as sentiment was upbeat in line with gains across the region, and after Thailand signed a free trade agreement with Japan, dealers said.
They said the market also held firm amid growing hopes that the Bank of Thailand would likely cut its key interest rate to 4.00 from current 4.50 percent at its policy board meeting next week. The Stock Exchange of Thailand (SET) composite index gained 6.91 points to 686.53 while the blue chip SET 50 index rose 5.53 points to 482.15.
Gainers led losers 237 to 100, with 105 stocks unchanged on turnover of 2.9 billion shares worth 13.8 billion baht (395 million dollars). The Thai baht closed at 34.97-99 to the dollar, little changed from Monday's 34.98-99. Against the euro, the Thai currency traded flat at 46.68-72.
"The market rose as sentiment turned positive in line with regional gains," said Kanang Duangmanee, an economist at Kasikorn Research Center. Sentiment was also upbeat after Bangkok and Tokyo signed a free-trade pact, with the kingdom hoping that it would ease business worries in Japan, the top investors in Thailand, about protectionist policies since a September coup.
The Thai market was also steady amid rising hopes that the central bank would slash its key interest rate to spur the slowing economy, dealers said. "Growing hopes for the rate cut supported property-linked shares," Kanang said.
On Monday, the government said Thailand's inflation rate fell for the fifth month in a row to 2.0 percent in March, while the central bank is to hold a rate-setting meeting on April 11.
Thailand's top energy firm PTT fell 2.00 baht to 208.00, but its subsidiary PTT Exploration and Production rose 2.50 to 94.00. The nation's biggest lender Bangkok Bank added 1.00 to 110.00 and the third-largest lender Kasikorn Bank also increased 2.00 to 67.00. Thai Airways International rose 1.75 to 45.50 and Thailand's top mobile phone operator, Advanced Info Service, jumped 4.50 to 72.50.