Thai stock market jumps 5.43 percent

BANGKOK (AFP) -- Thai stocks soared 5.43 percent Tuesday after anti-government protesters cancelled a planned march on Bangkok's financial district, but analysts warned the rebound could be short-lived.

The Stock Exchange of Thailand (SET) composite index jumped 39.47 points to close at 765.76 as foreign investors returned to the market, which has been roiled by weeks of confrontation between authorities and protesters.

Pichai Lertsupongkit, an analyst at Thanachart Securities, said he was surprised by the size of the rebound.

"Positive sentiment was boosted by the government still not using force to disperse the protesters, as well as the protesters deciding to call off the march to the financial district," he said.

The red-shirted demonstrators, mostly loyal to ex-premier Thaksin Shinawatra, have mounted four weeks of street rallies but were thwarted in a plan to march on the Silom financial hub after a heavy troop deployment.

But Pichai warned the gain could be temporary as Thailand's political crisis remains far from resolution, with the government resisting calls for fresh elections.

"The political factor is still very fluid and there are still chances of clashes," he said. "So today's rebound could be short lived."

Pichai said the petrochemical sector led the rally with a 9.9 percent gain.

Among bluechip stocks coal producer Banpu soared 34.00 baht to 624.00 baht, PTT Plc gained 15.00 baht at 260.00 baht, and Siam Cement rose 21.00 baht to finish at 258.00 baht.

-- ©Copyright AFP 2010-04-20

Published with written approval from AFP.

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Must be all the investors buying THB and rushing in to invest in a stable Thai economy

Must be all the investors buying THB and rushing in to invest in a stable Thai economy

Watch out for some quick profit taking! Last week analysts were saying the SET was likely to fall at least another 5% - more if there is a bloody end to the protests.

Edited April 20, 201016 yr by rreddin

Maybe they know TS is on his way back, and it will be great for the Thai economy

It's speculation and profit taking.