Foreign funds continued to flow into the stock market, pushing the SET Index up 2.05 per cent to 774.59 points, despite the rallies by the anti-government red shirts.
The influx of funds yesterday drove the Thai stock index to its highest point in the past 20 months, shrugging off the anti-government red-shirt demonstrations.
The SET Index yesterday was led by banking stocks. Kasikornbank was up 5.21 per cent, closing at Bt96 apiece. Siam Commercial Bank rose 4.79 to Bt131 while CIMBT rose 8.7 per cent to close at Bt3.
The gauge increased 5.6 per cent this week, the best weekly performance in six months. The baht had the longest run of weekly gains since June, according to Bloomberg.
Thai exports reported strong growth, rising 23.2 per cent from a year earlier to US$14.4 billion (Bt466 billion) last month
The local currency rose 0.7 per cent this week to 32.29 against the dollar, according to data compiled by Bloomberg. It was little changed today, after earlier rising to a 21-month high of 32.25.
An analyst at Country Group Securities said the SET Index rose due to continuing funds inflows, which was also reflected in the strengthening baht. Investor confidence has risen as there has not been any violence during the protests.
Trading volume yesterday was Bt33.99 billion. Foreign investors were still net buyers of Bt2.74 billion while general domestic investors were net sellers of Bt2.98 billion.
However, the red-shirt protests across Bangkok today and how long the protests last would be the main factors to be monitored, he said.
He added that the SET Index, which was already over-bought, is sensitive to a correction.
He advised local investors to also monitor the movement of trading by foreign investors.
A local brokerage said yesterday that foreign investors have switched their weightage to the banking sector from energy, as a result banking stocks have seen their prices rising.
Siam City Research Institute reiterated in its recent report that the lending of 10 commercial banks in February grew one per cent month on month and 0.4 per cent year-on-year while their dividend yields were high, driven by increased sales of vehicles.
