Thai share prices closed 4.43 percent higher on Monday, lifted by a strong regional rebound as investors took heart from a surprise US interest rate cut aimed at easing a credit squeeze, dealers said.
They said buying was also spread across the board on improved sentiment following voter approval of an army-backed constitution Sunday, which would pave the way for elections in December. The Stock Exchange of Thailand (SET) composite index gained 33.60 points to 792.02 and the blue chip SET 50 index increased 27.16 points to 564.86. Gainers far outnumbered losers 370 to 28, with 47 stocks unchanged on turnover of 3.2 billion shares worth 23.12 billion baht (673 million dollars). The Thai baht slightly gained from Friday's close, finishing at 34.36-38 to the dollar. Against the euro, the Thai currency was quoted at 46.37-42 from 46.35-42.
"The main driver of the market was the Fed's move. It was a positive surprise for investors and really helped boost sentiment," said Sukit Udomsirikul, senior analyst at Siam City Securities. The US Federal Reserve on Friday cut the lending rate it charges commercial banks in an effort to ward off a credit crunch, spurring buying in global stock markets Monday.
Apart from the Fed's rate cut, sentiment was also upbeat as investors welcomed the passage of the charter in Thailand's first ever referendum, Sukit said. Declaring victory in the referendum, which was seen as a crucial test for the generals who led last September's bloodless coup, army-backed Prime Minister Surayud Chulanont vowed Sunday to hold polls by year's end to restore democracy.
"There was a sense of optimism in the market as the country is clearly heading toward the elections in December," Sukit said. Thailand's top energy firm PTT gained 16.00 baht to 288.00 and its unit PTT Exploration and Production rose 5.00 to 114.00. Top lender Bangkok Bank also added 4.00 to 119.00. Thai Airways International increased 2.00 to 43.00, while the kingdom's largest mobile phone operator Advanced Info Service edged up 2.50 to 91.50.