Thai share prices closed 1.88 percent higher on Tuesday with investors continuing to find bargains and welcoming news of interest rate cuts from the United States and Australia. They said the US presidential election was also positively impacting on market sentiment with investors believing the new administration would do more to solve a global economic recession.
The Stock Exchange of Thailand (SET) composite index rose 8.43 points to close at 457.62 points, while the blue chip SET-50 index gained 6.29 points to 321.98 points. Gainers led losers 244 to 102, with 78 stocks unchanged on turnover of 6.19 billion shares worth 15.17 billion baht (433.46 million dollars).
The Thai baht was little changed against the dollar, finishing at 34.96-98 from Monday's 34.94-35.00 baht. The unit closed stronger against the euro, at 44.33-44 from 44.80-45.04. Pichai Lertsupongkit, president of Thanachart Securities, said foreign interest rate cuts and lower inflation boded well for investors.
"The market responded to the interest rate cuts in the US and Australia. Meanwhile, the Thai inflation rate announced yesterday is lower, so investors speculate that the interest rate in Thailand will be cut." He said an expected win for Barack Obama in the US presidential election was also having a positive impact. "If the Democrat wins, they will have a majority in the upper and lower house which investors believe will enable more decisive measures," Pichai added.
Top energy firm PTT gained 6.00 baht to 183.00 baht, while its subsidiary PTT Exploration and Production rose 1.00 to 99.00. Banpu, a major coal miner, was up 8.00 to 198.00. The country's biggest lender Bangkok Bank advanced 2.00 to 77.00, but Siam Commercial Bank slipped 0.50 to 58.00 while Kasikornbank was unchanged at 53.50. The kingdom's biggest telephone operator Advance Info Service closed 1.00 baht lower to 78.00, while flagship carrier Thai Airways edged up 0.90 to 8.95.