Thai share prices closed 1.77 percent higher on Monday after ousted premier Thaksin Shinawatra announced he would go into exile, cooling investor concerns about domestic political stability. They said a drop in global oil prices and gains in the US stock market also bolstered positive sentiment on the Thai bourse.
The Stock Exchange of Thailand (SET) composite index rose 12.23 points to close at 702.93 points, while the blue chip SET-50 index gained 10.51 points to 498.11 points. Gainers outnumbered losers 207 to 115, with 114 stocks unchanged on turnover of 3.49 billion shares worth 23.93 billion baht (709.12 million dollars).
The baht depreciated against the dollar, closing at 33.73-75 baht from 33.66-68 baht on Friday. But the Thai unit was up against the euro, finishing at 50.80-85 baht from 51.03-08 baht. "Thaksin's exile did affect the market. Investors currently feel more confident in Thai politics, at least for the short term," said Sukit Udomsirikul, head of research at Siam City Securities.
"The market sentiment was also positive due to a persisting drop in global oil prices and a recovery in the US stock market," he said, adding that gains in banking and energy shares drove the market.
Thaksin and his wife were due to appear before the Supreme Court on Monday to defend themselves in a graft case, but instead Thaksin released a statement saying the couple would go into exile in England. His presence in the kingdom had been causing investor jitters as protesters have taken to the streets to decry the former leader.
Thailand's biggest lender Bangkok Bank rose 5.00 baht to close at 124.00 baht. Kasikornbank gained 3.50 to 75.50 while Siam Commercial Bank rose 3.00 to 82.50. The kingdom's biggest energy firm PTT jumped 10.00 to 266.00 while its subsidiary PTT Exploration and Production lost 1.00 to 149.00. Banpu, the country's largest coal miner, gained 2.00 to 392.00. Thai Airways edged up 0.70 to 17.00. Thailand's biggest telephone operator Advance Info Service rose 1.50 to 90.50.