The key driver for the Stock Exchange of Thailand (SET) Index's rally in recent weeks - foreign buying of almost Bt100 billion worth of stocks late last month - boosted foreign ownership levels of Thailand's 30 big capitalisation stocks towards a four-year high.

The SET Index yesterday closed at 722.46 points after rising 0.52 per cent.

The equity-linked capital inflows were also attributed as the cause of the recent baht appreciation. The baht has strengthened about 10 per cent to an almost seven-year high so far. Yesterday, the baht closed at .

CLSA Asia-Pacific Markets said there had been a continued contraction in emerging bond spreads over US treasuries, which reflected a growing risk appetite for emerging-market exposure, while Asia represented more than 50 per cent of the Emerging Market Bond Index.

"Foreign inflows to the Asian region do not appear dissuaded by Thailand's coup and increasingly anaemic economic outlook. Foreigners remain resolute net buyers, as foreign buying approaches both multiyear and year-to-date highs," said the CLSA report.

Foreign inflows have proven a key driver for the SET's performance rally in recent weeks. However, CLSA said Thailand was by no means the sustained main area of such a focus, given the ongoing relative regional underperformance.

"Not unsurprisingly, Thailand's top 30 stocks [by market capitalisation] are absorbing much of this flow, pushing foreign ownership levels towards four-year-plus highs," said CLSA.

However, Tisco Securities managing director Paiboon Nalinthrangkurn said yesterday the scheduled SET road show on November 10 would not draw much capital inflow from foreign investors. He said foreign investors, particularly hedge funds, already had exposure in the Thai market and would not put much more money in it.