February 29, 2008
BANGKOK (AFP) - Thai share prices closed 0.43 percent higher on Friday on gains in energy stocks but buying was limited as investors waited for a central bank announcement on ending currency controls, dealers said.
They said many foreign investors opted to stay on the sidelines as they awaited the government's decision to lift the measures aimed at halting a rise in the Thai baht.
The announcement was made moments after the market closed.
The Stock Exchange of Thailand (SET) composite index rose 3.64 points to 845.76 and the blue-chip SET-50 added 3.16 points to 614.37.
Losers led gainers 188 to 148, with 123 stocks unchanged on turnover of 3.43 billion shares worth 24.57 billion baht (767.90 million dollars).
The Thai baht closed at a fresh 10-year high of 31.96-98 against the dollar, up from Thursday's 31.98-32.00. Against the euro, the Thai unit was quoted at 48.60-70 from 48.30-36.
"The market was volatile in the afternoon session as investors expected the central bank to lift the currency control measures later today," said Pongrat Ratanatavanananda, vice president at Bua Luang Securities.
Soon after the market's close, the Bank of Thailand said the currency rules, imposed in December 2006 to curb the baht's rise against the dollar, would stop being effective from Monday.
Chai Chirasevenupraphand, a market strategist at Capital Nomura Securities, said the Thai market finished slightly higher in the end as foreign investors took a wait-and-see stance on the fate of the currency measures.
The capital controls required 30 percent of all incoming investments to be held by financial institutions for up to one year.
But the controls spooked foreign investors, who saw the regulations as a steep tax on equity investments, and caused the biggest one-day drop in the Thai stock market in late 2006, involving losses worth 23 billion dollars.
Many exemptions were later made to the currency rules, but the general 30-percent requirement had remained in place until now.
Thailand's biggest energy firm PTT rose 2.00 baht to 342.00 and its subsidiary PTT Exploration and Production gained 1.00 to 151.00. Major energy firm Banpu was unchanged at 484.00.
Thailand's largest lender Bangkok Bank added 2.00 to 130.00, while the kingdom's biggest mobile phone operator, Advanced Info Service, remained flat at 105.00.
Shares in Thai Airways International also remained unchanged at 32.25.
