Thai share prices closed 0.13 percent higher on Thursday after the US Federal Reserve left interest rates unchanged and said that moderate growth in the US would continue, dealers said. They said investors continued dumping banking shares on expected sluggish earnings in the second quarter, but bought energy stocks as oil prices surged.
The Stock Exchange of Thailand (SET) composite index gained 0.90 points to 707.19 while the blue chip SET 50 index added 0.39 points to 498.05. Losers led gainers 157 to 150, with 138 stocks unchanged on turnover of 2.1 billion shares worth 14.68 billion baht (424 million dollars). The Thai baht further strengthened against the dollar, closing at a fresh nine-year high of 34.55-58 to the unit from Wednesday's 34.60-64. Against the euro, the baht finished at 46.70-88 from 46.80-90.
The Fed decided on Wednesday to keep its interest rate steady at 5.25 percent, forecasting moderate growth in the next few quarters but noting that inflation remained a concern. "The statement showed that the US economy is not too worrying, making the Thai index move only rangebound," said Mayuree Chowvikran, a senior market analyst at Siam City Securities.
Bank stocks, the second largest sector in the Thai bourse after energy, continued to drop for a second day on poor earnings outlook, she added. "Investors predicted that banks are likely to post the worst earnings" for the year, Mayuree said.
Thailand's top energy firm PTT closed flat at 228.00 baht while its unit PTT Exploration and Production slipped 0.50 to 91.50. The nation's top lender Bangkok Bank was unchanged at 109.00, while third largest Kasikorn Bank lost 1.50 to 64.00. Thai Airways International edged up 0.50 to 45.75. Thailand's largest mobile phone operator Advance Info Service was flat at 85.50.