Optimism, SET index both on the rise

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Optimism, SET index both on the rise

 

Investment on the Stock Exchange of Thailand (SET) was active Friday morning as the index hit its highest level in a year, as investors were confident that a general election would be held following the Constitution Tribunal's ruling on party dissolution Wednesday.

 

Investors bought blue-chip stocks in the energy and banking sectors during the morning session, pushing the SET index to close at 748.81 points, up 11.41 points from Wednesday's closing, with a turnover of about Bt20 billion.

 

The heavy investment was seen as investors were confident that a general election would be held soon. Their optimistic view came after the Constitution Tribunal on Wednesday ruled that Thai Rak Thai political party, founded by ousted prime minister Thaksin Shinawatra, and three small parties were guilty of electoral fraud during the April 2, 2006 general election.

 

The four parties were dissolved while the Democrat Party survived the closure ruling.

 

Prime Minister Gen. Surayud Chulanont has said that general election would be held in December.

 

The bourse rose in line with earlier projection, said Sukij Udomsirikul, assistant managing director of SCIB Securities. Investors bought bank and energy blue-chip stocks as they believed the general election would now be held before the end of this year.

 

However, investors should be cautious of profit-taking because prices of some stocks had risen as much

as 10 per cent, said Mr. Sukij. (TNA)