Thai stocks rose three percent on Thursday as investors looked for bargains after a two-day drop, snapping up brokerage shares on earnings hopes and telecommunications shares ahead of a sector liberalisation.
Thailand's top brokerage by market share, Kim Eng Securities, rose 11.67 percent to 67 baht and was the day's most active stock.
Traders said rumours were circulating that Kim Eng might do a share split to reduce the par value of its shares. Officials of the brokerage were not available for immediate comment.
The benchmark Stock Exchange of Thailand (SET) composite index closed up 22.58 points, or 3.01 percent, at 773.55 points.
The big-cap SET 50 index rose 3.43 percent to 50.42 points and turnover increased to 56.8 billion baht ($1.44 billion) from 48.1 billion baht on Wednesday.
"I'm surprised the market rebounded and was able to stay up at this level," said Phillip Securities strategist Suppamas Payakapan. "It's bargain-hunting after the index fell hard for two days."
The main index fell a combined 40 points on Tuesday and Wednesday.
Stocks in securities firms, due to report annual results in the coming weeks, were snapped up as investors expected strong 2003 results because of a surge in turnover, analysts said.
Stock exchange data showed average daily turnover more than doubled to 18.91 billion baht last year from 8.36 billion baht in 2002.
The finance sector index jumped 4.86 percent. Shares in Krung Thai Card, Thailand's biggest credit card issuer, rose 4.93 percent to 37.25 baht after the firm said on Wednesday it expected this year's net profit to double from last year's, which is expected to be 340 million baht.
United Communication Industry jumped 16.89 percent to 43.25 baht. The firm is a major shareholder in Singapore-listed Total Access Communication, Thailand's second-largest mobile phone operator, which is expected to benefit from the sector restructuring.
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