Stock Exchange index hits 18-year high
- Published: 13/02/2013 at 07:09 PM
- Online news:
Thai stocks surged Wednesday, driving the Stock Exchange of Thailand's benchmark index to its highest level since November, 1994.
It has been a tough ride for the SET in the last few years, as the index dropped to nearly 600 before rising to Wednesday's highest point in more than 18 years.
The SET Index climbed 1.7 per cent to 1,514.11 at the close in Bangkok. PTT Pcl shares rose four per cent, the most since November, 2011, as crude oil traded near a one-week high. Bangkok Bank Pcl jumped 3.4 per cent, the biggest increase since Jan 28.
The baht climbed, snapping a three-day decline. Currency dealers saw the SET and regional stock gains as likely to attract capital inflows - thus causing a demand for baht.
The baht advanced 0.2 per cent to 29.81 per dollar as of late Wednesday afternoon in Bangkok, the biggest gain since Jan 30.
The SET Index has gained 8.8 per cent this year, extending a 36 per cent rally in 2012, as domestic investment and consumption recovered from the great floods of 2011.
Local institutional investors purchased 928.8 million baht (about $31.2 million) of stock Wednesday, taking net purchases this month to 6.7 billion baht.
Sentiment was boosted by gains in regional markets as Singapore and Malaysia resumed trading after Chinese New Year holidays, BBL Asset Management Co's Voravan Tarapoom said.
"Investors continue to show optimism," said Mr Voravan, chief executive officer at BBL Asset, which oversees more than $7.5 billion. "There is also a significant inflow of money into equity funds from domestic investors."
Some 72 billion baht of shares traded on the Thai bourse Wednesday, the highest turnover since Jan 10 and 64 per cent more than the three-month daily average, according to data compiled by Bloomberg.
Local investors bought stocks Tuesday even as foreign funds sold a net 1.87 billion baht, exchange data showed. The sixth day of outflows brought total foreign sales in February to 11.9 billion baht.
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Writer: Online reporters, with Bloomberg