Thai stocks to rise, helped by optimism over govt

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BANGKOK: Thai stocks are expected to rise on Monday, recouping some of last week's lost ground in line with US and Asian stocks, and optimism about the policies of the new government may lure buyers to selected sectors, dealers said.

The benchmark SET index inched up 0.2 percent to 1,062.07 on Thursday before the market shut for a three-day holiday. The SET fell 2.9 percent on the week as investors cut risk exposure amid upheaval in global markets.

Foreign investors sold $620 million of Thai stocks last week, the exchange said.

Technical signs pointed to a market rebound to 1,070 and 1,075 on the day, analysts said.

"The index could see a technical rebound ... There may be some selective buying involving the economic stimulus policies of the new government," said Parin Kitchaotornpitak, senior analyst at broker Far East Securities.

Economic ministers of the six-party coalition government are to complete a draft programme on Monday and put it to the cabinet for approval this week.

High state spending and wage increases could push up consumer spending and accelerate growth in the economy, although inflation may go even higher, meaning interest rates will continue to rise, economists say.

Asian stocks climbed on Monday following modest gains on Wall Street but sentiment remained fragile after a wild week in financial markets.

The MSCI index of Asia excluding Japan was 1.5 percent higher by 0145 GMT.