Thai shares yesterday overtook the 1,500-point barrier, buoyed by easing concerns over Deutsche Bank's health and speculation on the banking and energy sectors' third quarter earnings.
A buying spree was spotted in banking stocks as investors await better-than-expected third quarter net profits on anticipation of lower impairment charges in the July-to-September quarter, said Padon Vannarat, investment strategist at Maybank Kim Eng Securities (Thailand).
Banks are due to announce their quarterly earnings in the middle of this month.
Krungthai Bank (KTB) is the most attractive stock of MayBank Kim Eng as its loan-loss provision reserves are expected to decline sharply from the same period last year, when it needed to set aside a huge provision for Sahaviriya Steel Industries (SSI)'s default, he said.
The country's second largest lender by assets set aside 10.5 billion baht in provisions in the third quarter last year as required by the Bank of Thailand.
KTB's desirablity spilled over to other banking stocks, he said.
Coupled with the prevailing positive sentiment, the SET Index will manage to stay above 1,500 points if listed companies' third quarter earnings are better than expected, said Mr Padon.
The SET index started the day with a positive note prior to the buying spree, which intensified after the afternoon session pushed the main gauge above the 1,500-point, finishing yesterday at 1,509.78 or a 1.26% gain. Turnover was brisk at 53.5 billion baht.
Siam Commercial Bank (SCB) rose 2.50 baht to 152 baht; Kasikornbank (KBANK) was up seven baht to 195 baht; Banpu (BNAPU) added 30 satang to 16.20 baht; KTB jumped 60 satang to 18.40 baht; and Bangkok Bank (BBL) rose four baht to 167 baht.
Foreign investors bought a total of 1.7 billion baht in stocks, stretching their net buy to 134 billion for the year.
The mood was as cheerful in other Asean stock markets. The Jakarta Composite Index hit its highest point in nearly one and a half years, while Malaysia clocked its biggest intraday percentage gain in two and a half months.