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Thai shares rally to post-coup high, consumer stocks strong
May 28, 2014 / 5:36 AM / 3 years ago

Thai shares rally to post-coup high, consumer stocks strong

BANGKOK, May 28 (Reuters) - Thai stocks climbed on Wednesday as consumer-related shares rallied amid optimism among local investors about the economy as the military government moved to restart public spending and make delayed subsidy payments to rice farmers.

The economic outlook is more bullish for the second half of the year after the army seized control of the government last week, some brokers said. That came after almost seven months of political turmoil during which the economy slumped.

Details of economic policies, including the state budget, are expected next week.

The SET index rose 1.2 percent to 1,408.73, the highest since May 22, when the military seized power after the market had closed. The benchmark notched up a 0.3 percent gain on Tuesday, ending two sessions of losses after the coup.

Foreign investors have been net sellers of Thai stocks since the imposition of martial law on May 20 followed by the coup two days later. Local investors and institutions have, however, bought local stocks.

KGI Securities expects economic growth of 3-5 percent for the second half of 2014, up from a close-to-negative rate in the first half.

In a report on Wednesday, the broker said the end of political disputes on the streets, declining political risks and economic uncertainty, and restarting of growth drivers should boost sentiment and real sector performances in the second half of 2014.

Shares of retailer Robinson Department Store jumped 4.1 percent and Siam Commercial Bank rose almost 2 percent to a near one-week high.

Data showed the economy remained weak in April, with factory output down for the 13th straight month and imports slumping again. Exports remained weak, falling 0.9 percent from a year before. (Reporting by Viparat Jantraprap; Editing by Alan Raybould and Prateek Chatterjee)

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