"Overall, this has increased confidence among investors, and the information is positive for the Thai capital market," said Patareeya Benchapholchai, president of the Stock Exchange of Thailand, which co-hosted the timely event with The Nation.

The packed venue was testimony to the rare opportunity to hear five economic ministers under one roof unveil the government's economic policies and answer questions.

The speakers were Deputy Prime Ministers Pridiyathorn Devakula and Kosit Panpiemras, Commerce Minister Krirkkrai Jirapaet, Energy Minister Piyasvasti Amranand and Information and Communications Technology Minister Sitthichai Pookaiyaudom.

Marco Sucharitkul, president of JP Morgan (Thailand) Co Ltd, said the greater certainty in policies should draw more foreign investment.

Among the audience of local and foreign investors as well as representatives from state agencies were 72 foreign institutional investors, mostly long-term funds and hedge funds with combined investment in Asia of about US$40 billion (Bt1.5 billion).

While the nominee issue is still unresolved and could scare off foreign direct investors, portfolio investors were more concerned about the government's investment policies and commitment to pursuing free trade despite upholding the principle of the sufficiency economy, Marco said.

"Indeed, Pridiyathorn is very clear about the nominee issue. He said it would become clearer in November how the Foreign Business Act should be amended," he said.

Kongkiat Opaswongkarn, president of the Federation of Thai Capital Market Organisations, said the session should restore confidence among investors, who had never been this sure of where the economy was heading under the interim government.

"The ministers were clear with the timetables, particularly for budget disbursement and investment. Investors were also informed that the government was pushing forward with economic development," he said.

Kosit, who is also industry minister, stressed that the sufficiency economy was aimed at increasing the quality of economic policies to ensure fairness to all. He also insisted that Thailand would not turn its back on foreign investment. This affirmed Krirkkrai's speech, in which he said fair practice would be the government's policy.

"When anything is unclear, we will strike a balance," Krirkkrai said, adding that the government welcomed opinions from all parties.

Sitthichai also insisted that the ICT Ministry would do its best to roll out proper infrastructure to make Thailand a digital economy by 2008.

"Investors also perceived Khun Pridiyathorn's economic-growth target of 5 per cent next year as appropriate, which should ensure economic stability," Marco said.

"They are also relieved to know that these policies laid down by the interim government will be continued if the infrastructure is right."

Indicating stock investors' confidence in the economy despite the radical change in government is the fact that foreign investors have remained net buyers of stocks since the September 19 coup, accumulating over Bt22 billion worth. The baht has also strengthened sharply against the dollar due to the waves of foreign capital pouring into the local stock market.

The situation led JP Morgan to believe that by the end of this year the SET Index would climb higher than 780-790 points, assuming that PTT Plc remains listed.

The SET yesterday closed at 740.42 points, down slightly from the previous day.

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