Thai stock index sets new high in 12 months
BANGKOK, April 30 Kyodo
Thai stocks on Friday surged to the highest level in the last 12 months after Moody’s Invetors Service upgraded its ratings outlook for leading Thai banks. The index of the Stock Exchange of Thailand (SET) soared 6.21% to close at 459.35 on volume of 22.01 billion bath (0.59 billion dollars). The previous peak of the SET index was 447.37 on April 9, 1998. As Moody’s upgraded its outlook for the ratings of the five leading Thai banks to stable from negative, both local and foreign investors rushed to the market. Among the front-runner sectoral indices, the banking sector index rose 13.94% while the financial sector index grew 8.76%. In a statement issued Friday, the U.S. rating agency upgraded its outlook for Bangkok Bank Plc, Krung Thai Bank Plc, Thai Farmers Bank Plc, Siam Commercial Bank Plc and the Export-Import Bank of Thailand. An analyst of the Capital Nomura Securities Public Co. said, “It means the Thai economy has reached the bottom and the negative trend is over. It would be more and more stable from now on.” He also noted that foreign investors had returned to the Thai capital market with longer term of investment, adding that some 30-40% of the trading volume on the Thai stock market in this week was made by the foreign investors. “Regional fund managers are now looking forward to medium to long-term investment in the market,” the analyst said.
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