"I believe foreign investors will continue to snap up Thai shares until the first quarter of next year," he told reporters.

Foreign investors have bought Thai shares with a net position of Bt22.01 billion since the bloodless September 19 coup.

The SET Composite Index fell 0.37 per cent, or 2.72 points, to 725.77 in moderate trading volume of Bt12.12 billion yesterday. The blue-chip SET 50 Index lost two points to 508.64.

Analysts agree that the "January effect" - the rush by foreign investors to buy local shares in the new year - will return on the back of historic highs in many major stock markets and capital inflows into Asia after the US Federal Reserve paused its interest-rate hikes.

The great influx of offshore funds into the Thai bourse has helped push the baht up to a nearly seven-year high against the greenback.

Vijit also said the SET would discuss with Finance Minister MR Pridiyathorn Devakula about shortening the time frame for the capital market development plan from five years to three.

Another topic to be discussed in the meeting early next month is whether the Finance Ministry would extend corporate tax incentives to newly listed companies for another year.

Vijit said most listed companies here scored more than 70 per cent in corporate governance.

Companies with high ratings would win the confidence of both local and foreign investors, he added. For companies that scored below the 70-per-cent mark, Vijit said the SET would meet with their executives to provide guidelines on good corporate governance practices.

Charnchai Charuvastr, president of the Thai Institute of Directors Association, said Banpu, Bangkok Bank, Bangchak Petroleum, Krung Thai Bank, Kasikornbank, PTT, PTT Exploration and Production, Ratchaburi Electricity Generating Holding and Siam Commercial Bank were rated excellent in corporate governance this year, with scores in the 90-100 range.

Siriporn Chanjindamanee

The Nation