Thai share prices closed 0.90 percent higher on Wednesday as investors took heart from an economic stimulus package aimed at helping low-income earners, dealers said. They said a fresh record high on Wall Street and regional gains provided additional support.
The Stock Exchange of Thailand (SET) composite index rose 6.31 points to 705.47, closing above the key 700-point level for the first time since mid-December, while the blue chip SET 50 index added 5.49 points to 497.46. Gainers led losers 231 to 98, with 116 stocks unchanged on turnover of 1.9 billion shares worth 13.13 billion baht (377 million dollars).
The Thai baht moved little but held close to nine-year highs at 34.76-77 to the dollar. Against the euro, the Thai currency finished at 47.19-25 from Monday's 47.28-35. Thai financial markets were closed on Tuesday due to a public holiday.
"Sentiment was positive as foreign investors welcomed the economic stimulus scheme," said Chai Chirasevenupraphand, a market strategist at Capital Nomura Securities. Thailand's army-backed government had been under pressure to launch stimulus measures to support the economy which is expected to grow just 3.8-4.8 percent in 2007 due to political uncertainty after a September coup.
Wednesday's package worth 1.2 billion dollars would extend more loans from state-owned banks to low-income earners and Finance Minister Chalongphob Sussangkarn said the government was also mulling easing tax measures. Thailand's top energy firm PTT rose 4.00 baht to close at 224.00 while unit PTT Exploration and Production was unchanged at 94.00. The nation's top lender Bangkok Bank added 2.00 to 112.00. Thai Airways International fell 0.50 to 46.25.