SET index rises 3.18 points
- Published: 13/09/2013 at 04:59 PM
- Online news:
Thai stocks inched up 0.2% on Friday, continuing their recovery on renewed foreign buying interest even as many investors awaited next week's US Federal Reserve meeting.
The Stock Exchange of Thailand Index rose 3.18 points from Thursday to close at 1,401.08, an increase of 4.8% from the previous Friday's close of 1,336.25. Turnover was 39.27 billion baht, with 7.8 billion shares traded.
The local market is up 0.7% from the end of 2012 and down 14.7% from the year-high of 1,643.34 reached in mid-May. Over the past 12 months it has gained 25.4%.
Foreign investors were net buyers on Friday of 1.03 billion baht worth of Thai shares, bringing their net buying for the month of September to 10.96 billion baht. For the year to date they are net sellers of 105 billion baht.
Local institutions were net sellers on Friday of 212.95 million baht and retail investors sold 1.5 billion. Local brokers were net buyers of 741.3 million baht.
Asian markets were little changed in Friday trading as investors contemplated the possible tapering of US stimulus measures when the Federal Reserve meets next week.
The results of the Fed's two-day meeting will be announced around 2am Thursday Thailand time.
The Nikkei Stock Average in Tokyo headed lower before closing higher at 14,404.67, up 0.1% from the previous day. The Hang Seng in Hong Kong lost 0.4% to 22,864.89 and South Korea's Kospi was down 0.5% to 1,994.32.
"The market has been nervous for some time, and so it's hard to make major moves," said Masahiro Yamaguchi, vice-president at Mizuho Securities in Tokyo. "On the plus side is the celebratory buying over the decision to pick Tokyo for the Olympics."
In Bangkok, the SET50 index of blue chips ended at 957.25 points, up 0.55 points, with total trade value of 27.6 billion baht. The SETHD index of high-dividend shares rose 0.16 points to 1,161.04, with turnover of 11.4 billion baht. The Market for Alternative Investment lost 3.12 points to 355.23, with transaction value of 2.5 billion baht.
The five most active shares by value were the contractor Ch. Karnchang (CK), rising 1.10 baht to 22.40 baht; TMB, up 10 satang to 2.78 baht; KTB, up 20 satang to 19.90 baht; ADVANC, up 1 baht to 261; and PTTEP, down 50 satang to 169.50 baht.
In the currency markets, the baht had its best week in five months as foreign investors increased their holdings of assets amid optimism that a global economic recovery is brightening the outlook for Asian exports.
Global funds bought $310 million more in Thai equities than they sold in the first four days of this week, set for their biggest weekly net purchase since November. Foreign purchases of bonds for the week totalled $381 million.
"We saw quite a sharp appreciation in the baht because of the inflows," said Pareena Phuangsiri, an analyst at Kasikornbank. "But gains will probably be short-lived and we have been recommending exporters wait" to buy the baht, she added.
The baht retreated on Friday but was up 1.1% over the week, the most since the five-day period ended April 19. It was trading late Friday at 31.87/93 to the dollar, compared with 31.73/77 on Thursday, and 32.38/42 a week earlier.
However, Goldman Sachs has forecast downward pressure on the baht will persist over the next few months given the prospect of a reduction in stimulus by the US Federal Reserve, and until confirmation of an improvement in Thailand's balance of payments.
The US investment bank sees the baht at 33 per dollar in three months, weaker than its previous forecast of 31.30.
The yield on Thailand's 3.625% sovereign bonds due in June 2023 declined three basis points on the week to 4.37%.
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- Writer: Online Reporters
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