Bernanke's speech created euphoria in stock markets around the world as investors dismissed anxiety over the Middle East tension.

Wall Street jumped to 1.96 per cent on Wednesday. The KOSPI index yesterday closed 3.21 per cent higher than the night before, the Tokyo Stock Exchange's benchmark Nikkei-225 index rose 3.08 per cent and the Straits Time Index was up 1.78 per cent.

At home, the Thai SET index yesterday started the day with a jump-start. But it closed the day at 668.96, off the day's peak at 672.76. Turnover was moderate at Bt13.71 billion while foreign investors bought Thai shares with a net worth of Bt861.56 million.

PTT Plc (PTT) surged 1.75 per cent at Bt232, Thai Oil Plc (TOP) jumped to 1.61 per cent at Bt63, and Siam Commercial Bank (SCB) soared 1.87 per cent at Bt54.50. However, speculative stocks did significantly well. International Engineering Plc (IEC) was up 23.33 per cent at Bt2.96, Bliss-Tel Plc rose 5.10 per cent at Bt4.12, Bliss-Tel warrant shot up 24.72 per cent at Bt2.22, and Everland Plc (EVER) surged 28.09 per cent at Bt11.40.

KGI Securities (Thailand)'s director for Economic Research and Investment Strategy Division Adisak Kammoon said that the Fed's dovish stance during August 8 meeting came as a blessing to the Thai stock market.

Bernanke told Congress that the US economy would trim price pressure eventually. And the SET index would break through the 700-psychological level again over the next two weeks, he predicted.

Energy and banking stocks are expected to be the driving force, he said.

The Monetary Policy Committee (MPC)'s decision to keep the 14-day repurchase rate unchanged at 5 per cent and Japan's haveing raised its interest rate for the first time in six years also gave a big boost to the sharp increase in the Thai stock market.

"Japan's announcement to increase domestic interest rate from zero to 0.25 per cent would attract capital inflow to Asia over the next 12 months," he said.

Meanwhile, SET Executive vice-president Suthichai Chitvanich said that the stock exchange prohibited Everland's stock from intraday and margin trading for 30 days after its price and volume showed fluctuations in the past few weeks. The ban will take effect from today.

The stock chalked up 206 per cent from Bt3.72 when it closed on June 20 to Bt11.40 yesterday.

The SET is launching a probe as to if investors have managed to manipulate Everland's stock, he said.

He admitted to the fact that the investigation is proving to be a difficult task, as stock manipulation seems to be related to a number of investors.

Commenting on other stocks, prices of which surged abnormally, Suthichai said the stock exchange is keeping a close watch. However, intraday and margin trade ban for them are unnecessary.

IEC, Diana Department Store Plc (DIANA), Superblock Plc and Bliss-Tel warrant have risen dramatically over the past few days.