SET Index closed almost 3% higher

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Hong Kong's Hang Seng Index enjoyed the biggest gain the region, surging 7.41 per cent. Singapore's Straits Times Index rose 5.94 per cent, the Nikkei225 index soared 4.40 per cent, South Korea's KOSPI closed 3.54 per cent higher, Taiwan's weighted index shot up 3 per cent, and the Jakarta Composite Index jumped 2.60 per cent.

The SET Index closed up 2.99 per cent at the day's peak of 442.96 points. Turnover was moderate at Bt15.52 billion.

PTT Aromatics and Refining (PTTAR) climbed 9.39 per cent at Bt9.90, Thai Oil (TOP) surged 9 per cent at Bt27.25, Kasikornbank (KBANK) was up 6.63 per cent at Bt48.25, and Siam Commercial Bank (SCB) increased 6.28 per cent at Bt59.25.

Pongrat Ratanasavanananda, head of research at Bualuang Securities, said the SET Index tracked the strong gain in the regional markets prompted by the improvement in some economic indicators in the US last month.

The report that a credit rating agency will soon bump up Thailand's credit outlook from negative to stable also gave a big boost to the bourse, she said.

However, the SET Index would likely fail to break through the 450-resistance level, so investors should take profits, she said.

Kavee Chukitkaserm, assistant managing director of Kasikorn Securities, said that if Thailand's outlook is really upgraded, it would be a blessing for the stock market as investors would have more confidence in Thailand.

The banking sector would be the biggest beneficiary from the upgrade, he said.

Thongmakut Thongyai, head of equities at Citicorp Securities, was doubtful about the report, as the domestic political situation remains the critical factor to be watched.

"If the [protest] rally lingers on, it will be difficult for other credit ratings to notch up Thailand's outlook to stable. However, Thailand's credit rating won't be downgraded," he said.

Meanwhile, Charuphan Intararoong, a spokesman for the Securities and Exchange Commission, said the securities watchdog has insisted on not postponing the full deregulation of brokerage commissions, as requested by the Association of Securities Companies.

However, the final decision depends on the Capital Market Development Committee, he said.