The Stock Exchange of Thailand (SET) Index surpassed the 730-point psychological level to end at 737.40 points, or 9.61 points higher, on turnover of Bt19.53 billion.

"Foreigners' net buy totalled Bt933 million yesterday. Most of the buying came in the afternoon as investors had high hopes that, following the acquittal of the Democrat Party, the Thai Rak Thai Party would also be spared dissolution," said Marco Sucharitkul, president of JP Morgan Securities (Thailand).

Investors were also hopeful that after this verdict, all eyes would be refocused on the charter drafting with expectations that the election would be held on schedule, he said.

Speaking from Singapore where she has taken listed

companies on a roadshow,

SET president Patareeya Benjarongchai said that the acquittal of the Democrat Party was seen as as good news as it "had somewhat cleared" the political clouds.

"Fund managers here [in Singapore] asked me a lot about the judgement and I told them it should not have a huge impact on the stock market," she said, adding foreign fund managers are still interested in Thai stocks, as reflected in the net buy of Bt65 billion since the beginning of this year.

An SCB Securities analyst noted that Thai stocks had gained largely due to the absence of violence as well as the expectation that both parties would be spared.

"Energy and banking stocks were up and [if the verdict for Thai Rak Thai is the same as for the Democrat), foreigners should buy more into the stocks," the analyst said.

Ahead of the verdict reading by the Constitution Tribunal, Santi Vilassakdanont, chairman of the Federation of Thai Industries, was hopeful there would be no violence.

"Then, after we have the new constitution and the election, the economy in the third and fourth quarters would improve due to regained confidence," Santi said, predicting economic growth this year of 4 per cent.

Siriporn Chanjindamanee

The Nation