BANGKOK: Thai stocks may extend their gains for a third session on Tuesday, following positive lead from Wall Street and as rising global oil prices help bolster demand for energy shares.
Thailand's temporary removal of a levy on certain fuels to bring down retail prices also boosted optimism about higher local demand and sales of listed energy firms.
On Monday, the benchmark Thai stock index rose 1.8 percent, its biggest rise in two weeks, to 1,055.63.
The biggest oil refiner Thai Oil surged 6.3 percent after analysts said it would benefit from the oil fund policy and as the stock carried cheap valuation.
Domestic institutions led buyers on Monday, buying shares worth a net 2.55 billion baht ($85 million) while foreign investors sold shares for a net 1.8 billion baht ($60 million), stock exchange data showed.
"The market could gain positive sentiment from overseas bourses ... A further rise in crude prices overnight will give another boost on energy shares," said Chai Chirasevenupraphund, senior strategist at broker Capital Nomura Securities.
Resistance for the main index was seen at 1,067 and 1,070, with support at 1,045, analysts said.
The broader Asian stock market rose on Monday, with the MSCI index of Asia excluding Japan up 1.35 percent by 0220 GMT.
Copyright Reuters, 2011
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