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Thai stock exchage hits new high despite rate meeting
Publication Date : 20-02-2013
The Stock Exchange of Thailand Index hit a new 18-year high, ahead of the Bank of Thailand's policy rate meeting today.
The Thai bourse ended the morning session at 1,540.12 points, gaining 8.05 from the previous closing.
Thanks to robust economic growth in the fourth quarter, most economists believed that the policy rate would be maintained at 2.75 per cent. A cut would further boost investment in the stock market.
Sukit Udomsirikul, managing director of Maybank Kim Eng Securities (Thailand), told TPBS in the morning that the market sentiment is boosted by improvement in global economic indicators rather than the policy rate.
The Bank of Thailand has been urged by the government and exporters to cut the policy rate, primarily to deter capital inflows and hence weaken the baht against US dollar.
"Such inflows are mainly going to the bond market. As we have witnessed, foreigners are net-sellers this month," he said.
According to the SET data, foreigners’ sell has outpaced their purchases by 13 billion baht (US$434 million) so far this month.