April 1, 2008
BANGKOK (AFP) - Thai share prices closed 0.77 percent higher on Tuesday as investors hoped for better prospects for the economy after the government approved a 12.7 billion dollar rural loan scheme, dealers said.
They said the stimulus package improved the economic outlook, but that sentiment was still overshadowed by fears of a slowdown in the US economy.
The Stock Exchange of Thailand (SET) composite index rose 6.33 points to 823.36 and the blue-chip SET-50 gained 5.58 points to 593.19.
Gainers outnumbered losers 230 to 104 with 120 stocks unchanged on turnover of 2.78 billion shares worth 11.79 billion baht (374.28 million dollars).
The baht changed little against the dollar, closing at 31.49-50 from Monday's 31.48-51. Against the euro, the Thai unit was quoted at 49.30-38 from 49.79-84.
"The market rose today because investors had hopes to see economic improvement," said Sukit Udomsirikul, head of research at Siam City Securities.
The Thai market moved in line with other regional markets like Japan and Hong Kong.
"But, trading was thin, reflecting that investors still worried over the stability of the country's economy," Sukit said.
The Thai government Tuesday approved a 12.7 billion dollar rural loan package to stimulate its struggling economy after two years stagnation due to the political turmoil surrounding the 2006 coup.
Most of the funds would go to developing new crops for use as biofuels, as the government tries to lower its dependence on increasingly expensive oil imports.
Thailand's biggest energy firm PTT rose 4.00 baht to 320.00 while its subsidiary PTT Exploration and Production gained 2.00 to 153.00. Another major energy firm Banpu also rose 4.00 to 420.00.
The kingdom's largest lender Bangkok Bank edged up 1.00 to 136.00.
Thai Airways International were unchanged at 29.00, while Thailand's biggest mobile phone operator, Advanced Info Service, slipped 0.50 to 99.50.
