Thai stock index surges to record high in decade, high turnover

BANGKOK, July 3 (TNA) -- Increased confidence in Thailand’s political and economic outlook sent the Stock Exchange of Thailand (SET) composite index to close at 2.63 per cent higher Tuesday, breaking the 800-point barrier to hit the highest level since the financial crisis that hit the country a decade ago.

The SET composite index closed at 813.52 points, up 20.81 points from Monday and the highest since Thailand floated its currency, the baht, on July 2, 1997 which sparked a regional meltdown. The SET index on that day closed at 803.13 points.

Tuesday’s turnover was very high at about Bt46.93 billion as foreign investors were net buyers of about Bt7.83 billion and institutional investors were also net buyers of Bt1.01 billion.

A stock analyst at Capital Nomura Securities Public Co., Ltd. said the index rose sharply after foreign investors bought blue-chips in energy, shipping and securities sectors on high confident that their earnings would perform impressively. Bright prospects of the Thai economy was another positive factor.

Sombat Naravuthichai, secretary-general of the Securities Analysts Association, said the stock market rose sharply as investors gained more confidence on Thai politics while inflation was at low level and there were signs that local interest rates would retreat further to 3 per cent.

Analysts have predicted that Thailand’s economic this year would improve while several securities firms are planning to revise up the SET index to close at around 780-840 points at end-2007 versus 731-point projected earlier, said Mr. Sombat.

Since the beginning of this year up till now, net buying by foreign investors amounted about Bt100 billion compared to between Bt100 to Bt150 billion annually in the past, said Mr. Sombat, adding that there were signs that foreigners would continue to invest on the SET.

Foreigners normally invest on blue-chip stocks such as those under the energy and bank issues, Mr. Sombat added.

TNA

Baht rises to strongest level in decade

BANGKOK, July 3 (TNA) – The Thai baht has appreciated to 34.38-34.39 to the US dollar, its strongest level in almost a decade, in the same direction with other Asian currencies due to a continued inflow of foreign funds into the Stock Exchange of Thailand, according to a Thai money dealer.

A dealer from Kasikornbank Plc said the baht had risen to a new high since the currency was floated in 1997 because Asian currencies had strengthened thanks to an inflow of large foreign capital into Asian stock markets including the SET whose index has surged to a record high in four years.

However, the rise in the baht by 4.5 per cent since early this year remained close to that of other Asian currencies.

For instance, the Malaysian ringgit had appreciated by around 4 per cent, the Indonesian rupiah by 3 per cent, and the Philippine peso by 8 per cent.

On Monday (July 1), the peso broke through the 9,000 level, a new high, before dropping to stabilise at 8,980 to the US dollar.

The dealer said the strengthening of the baht is not cause for overconcern because the currency has been moved by market mechanism, driven by the foreign capital inflows.

Should the foreign funds continue to flow into the country, the baht is likely to further appreciate.

TNA