SET posts record winning streak

SET posts record winning streak

Thai stocks rose, with the benchmark index posting its longest rally in almost four years, and the baht gained as international investors poured money into the nation’s assets on speculation the economy will rebound.

The SET Index added less than 0.1% to close at 1,507.92, a 10th day of gains, the longest stretch of advances since August 2010. The gauge entered a bull market last month. The baht rose as much as 0.5% to 32.232 versus the dollar, the strongest intraday level since April 29.

Foreign funds have poured a net $843 million into Thai stocks and bonds this month, betting that accelerated spending by the military government will revive Southeast Asia’s second- biggest economy after it contracted in the first quarter. Junta leader Prayuth Chan-Ocha has approved new investment projects to spur growth since seizing power on May 22 amid escalating tensions between opposition politicians and former prime minister Yingluck Shinawatra’s party.

“The quick turnaround of the Thai economy will attract more foreign-fund inflows,” Veera Vutthikongsirigool, chief investment officer at Krung Thai Asset Management Co Ltd, which oversees about $17.6 billion, said at a press briefing today. “Improving confidence among consumers and businessmen will be a key driver for the economic recovery.”

Growth forecast

Bangkok Bank, the country’s biggest lender, climbed 1.3%. Minor International, the nation’s biggest operator of resorts and fast-food restaurants, rose 2.4%. Asia Aviation Plc, which controls the country’s biggest budget airline, jumped 6.1%.

The Thai economy may grow as much as 4% in the second half of 2014, Bank of Thailand governor Prasarn Trairatvorakul said today. Gross domestic product fell 0.6% from a year earlier in the first quarter. The baht is “not too strong” compared with other regional currencies, Mr Prasarn said.

An index of consumer confidence rose to 75.1 in June, the highest level since October, according to a July 3 release from the University of the Thai Chamber of Commerce.

The SET index is valued at 13.7 times projected 12-month earnings, compared with the five-year average of 11.8 times. The MSCI Emerging Markets Index is trading at a multiple of 11.

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