SET index jumps 11.34 points

SET index jumps 11.34 points

Thai stocks came within a hair of 1,600 on Friday amid gains in most Asian markets as the global economic outlook continued to improve.

The Stock Exchange of Thailand Index rose 11.34 or 0.7% to close at 1,589.13, an increase of 1.4% from the previous Friday's close of 1,566.92. Turnover was 76.8 billion baht, with 21.58 billion shares traded.

The gauge peaked for the day at 1,599.89, still 190 points from the all-time high recorded on Jan 5, 1994. The local market is up 14.8% since the start of the year.

The SET Index is up 14.8% this year to date, but still 190 points away from its all-time high reached on Jan 5, 1994. (Bloomberg Photo)

Foreign investors were net buyers on Friday of 3.98 billion baht worth of Thai shares. Local institutions were net sellers of 1.32 billion baht and brokers sold 352 million. Individual investors were net sellers of 2.31 billion baht.    

For the month to date, foreign investors have bought 11.5 billion baht more in Thai shares than they have sold, after heavy selling in late February. Foreign net buying for the year to date is 9.11 billion baht.

World stock markets mostly refrained from big moves on Friday as traders waited for a report on US industrial production later in the day. The US data were expected to show additional signs of recovery in the world's largest economy, analysts said.

European markets were off marginally in early trade on Friday, while futures in Wall Street pointed to a flat opening for stocks in New York.

Japan's Nikkei 225 rose 1.5% to 12,560.95 -- its highest close in more than four years -- after both houses of parliament endorsed Haruhiko Kuroda, the current president of the Asian Development Bank, to head the Bank of Japan.

The vote allows Kuroda to stand in for current Bank of Japan Governor Masaaki Shirakawa after he steps down on March 19. Another vote is required to make Kuroda's appointment permanent.

Elsewhere in Asia, Hong Kong's Hang Seng fell 0.4% to 22,533.11 and Australia's S&P/ASX 200 advanced 1.8% to 5,120.20. Benchmarks in mainland China and Indonesia rose while those in Singapore and Taiwan fell. South Korea's Kospi shed 0.8% to 1,986.50.

In Bangkok, the SET50 index of blue chips ended at 1,045.26 points, up 7.14 points, with total trade value of 38.96 billion baht. The SETHD index of high-dividend shares rose 11.33 points to 1,307.77, with turnover of 11.73 billion baht. The Market for Alternative Investment gained 8.33 points to 505.77, with transaction value of 8.57 billion baht.

The five most active shares by value were Charoen Pokphand Foods(CPF), rising 75 satang to 34.50 baht; The Skytrain operator BTS, up 0.30 to 9.10 baht; Bank of Ayudhya (BAY), up one baht to 35 on news of a prospective Malaysian bid for the stake now held by US-based GE; THM Bank, down 6 satang to 2.82 baht; and SUSCO, up 65 satang to 6.65 baht.

In the currency markets, the baht had its biggest weekly advance since January and government bonds rose as global funds increased holdings after Fitch Ratings raised its credit rating for the country.

The baht was trading late Friday in Bangkok around 29.51/54 per dollar, compared with 29.63.68 on Thursday and 29.73/76 a week earlier.

The baht is trading at a 19-month high because of rising investor confidence after the rating upgrade and upward revisions of economic forecasts, Bank of Thailand Governor Prasarn Trairatvorakul said this week, adding that the central bank was not concerned about the appreciation.

"Thailand's economy is outstandingly solid among the emerging nations, and that attracts investors," said Koji Fukaya, CEO of FPG Securities Co in Tokyo. "Investors were able to confirm their bullish view with the rating upgrade. Fund inflows are supporting the baht and the bonds."

The baht has strengthened 3.5% this year, the best performer among Asia's 11 most active currencies tracked by Bloomberg.

Nomura Holdings has recommended investors buy the baht because the Bank of Thailand "has proved to be less interventionist in the foreign-exchange market than previously".

There has been relatively less pressure from exporters to limit the baht's appreciation as local companies have benefited from a surge in investment, and the impact of the weaker yen on the Thai economy has been limited, Nomura added.

The yield on 3.625% Thai government bonds due in June 2023 declined three basis points this week to 3.62%, the lowest level since Feb 28.

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