Thai Stocks End Nearly 5% Higher After Election

[webfact]

Thai stocks end nearly 5% higher after election

BANGKOK, July 4, 2011 (AFP) - Thai stocks soared nearly five percent on Monday after a convincing election win by the opposition reassured traders that stability could return to the politically divided country.

The Stock Exchange of Thailand (SET) composite index ended 4.69 percent, or 48.80 points, higher at 1,090.28, in a day of heavy trading after the crucial vote on Sunday.

The opposition Puea Thai Party, allied to fugitive ex-premier Thaksin Shinawatra, held talks on Monday with four smaller parties to form a coalition government after it won by a landslide.

"Concerns over political stability suddenly reduced after Puea Thai was able to form a five-party coalition," Pichai Lertsupongkit, senior vice president at Thanachart Securities, told AFP.

Together the five parties hold 299 out of 500 seats in the lower house of parliament, according to Thaksin's sister Yingluck Shinawatra, who is set to become the kingdom's first female prime minister.

Outgoing premier Abhisit Vejjajiva resigned from his party early on Monday, a further sign that the handover of power was on course to be smoother than expected after years of protests by both pro- and anti-Thaksin camps.

"The chance that there will be more street protests is slim," said Rakpong Chaisuparakul, a strategist at KGI Securities.

"Banking and property sectors -- which will benefit from new government spending -- are all up," he said.

The Thai baht also appreciated against the US dollar, trading late afternoon at 30.47-49 to one dollar compared with 30.80-82 at the close on Thursday, traders said. Friday was a bank holiday.

-- (c) Copyright AFP 2011-07-04

[Darrel]

Which puts it back to where it was this time last month.

[ExpatJ]

Yes, this was a great bonus for those who hold thai stocks. The large majority result was welcomed by the markets and i think bodes very well for Thailand.