Thai share prices closed 0.53 percent higher on Wednesday on speculative buying of big-cap banking stocks ahead of a US Federal Reserve decision on interest rates, dealers said.
They said the Thai index rose despite drops on markets around the region on expectations that the Bank of Thailand would say that the economy is still going strong when it releases its monthly report Friday. The Stock Exchange of Thailand (SET) composite index rose 4.03 points to 771.00, while the blue chip SET 50 index gained 2.75 points to 546.09.
Gainers led losers 199 to 120 with 137 stocks unchanged on turnover of 2.3 billion shares worth 12.67 billion baht (366 million dollars). The Thai baht held firm to the dollar, closing at 34.53-56 to the unit. Against the euro, the Thai unit finished at 46.40-45 from 46.25-75. Chai Chiraseveenupraphan, a market strategist at Capital Nomura Securities, said the trading volume remained low as the Fed prepared to begin its two-day interest rate meeting.
"Investors opted to stay outside the market to wait for the Fed statement on concerns that the bank might signal a possible increase of interest rates," Chai said. Buying of banking shares, which make up 16 percent of the Thai bourse, boosted local trading despite an overnight slide in US stocks.
Chai said the market also expected May economic figures would remain strong, especially for exports. The Finance Ministry said on Wednesday exports rose 20 percent to 13 billion dollars last month on the back of strong growth in shipments of automobiles and electronic goods.
Thailand's top energy firm PTT added 2.00 baht to 270.00 and its unit PTT Exploration and Production was up 1.00 to 110.00. The kingdom's top lender Bangkok Bank closed unchanged at 116.00 and the third largest lender Kasikorn Bank gained 1.50 to 72.50. Thai Airways International edged down 0.25 to 43.25. Thailand's largest mobile phone operator, Advanced Info Service (AIS) slipped 0.50 to 84.50.