Thai Shares Rise To 27-month High

[george]

Thai Shares Rise to 27-Month High

BANGKOK: -- Thai shares jumped to a 27-month high Monday as investors cheered the Constitutional Court's ruling to annul the April 2 elections and call a fresh poll to end the drawn-out political crisis.

The Stock Exchange of Thailand index closed up 14.69 points, or 1.9 percent, at 782.91.

While a date for new elections wasn't immediately set, the court ruling will help end a crisis that has left the country in limbo and unable to form a new government.

The opposition Democrat Party, which had boycotted the controversial April 2 elections, praised the ruling and pledged to take part in the upcoming polls, said party leader Abhisit Vejjajiva.

"The decision has certainly reduced political heat as it gives substantial hopes the check and balance of a parliamentary system will be restored," said Pichai Lertsupongkit at Prudent Siam Securities.

Advancers led decliners 261 to 106, as trade volume was moderate at 3.47 billion shares worth 20.55 billion baht, compared with 2.55 billion shares valued at 14.20 billion baht Thursday. The market was closed Friday for a public holiday.

Leading the index's gains, Advanced Info Service rose 7.0 percent to 99.50 baht following a newspaper report that the national telecom regulator has agreed to grant international Internet gateway operating licenses to its joint venture with state-owned TOT PCL.

True Corp, another recipient of international Internet gateway operating licenses also jumped 5.8 percent to 10.10 baht.

Oil and gas conglomerate PTT gained 1.5 percent to 266 baht, its unit PTT Exploration & Production rose 0.8 percent to 126 baht and the country's largest oil refiner by capacity Thai Oil went up 0.7 percent to 68 baht amid rallying global oil prices.

Bangkok Bank went up 3.6 percent to 116 baht, Kasikornbank rose 4.6 percent to 68.50 baht and Siam Commercial Bank gained 4.7 percent to 66.50 baht amid optimism that loan growth would improve as political tension eased, analysts said.

Kim Eng Securities gained 6.6 percent to 28.25 baht and Phatra Securities went up 8.3 percent to 52.50 baht as many players expect trade volume in the market to be heavier in the near future.

--AP 2006-05-08