Thaksin produces short-lived euphoria

The Stock Exchange of Thailand (SET) composite index surged almost 20 points at the open. Coupled with regional market gains, the easing of Thailand's domestic political tension is expected after ousted prime minister Thaksin Shinawatra and his wife Khunying Pojjaman are reported to seek an exile in the United Kingdom.

The index opened higher by 18.06 points to stay at 708.76 and continued to gain momentum to close the morning session at 712.61, up 21.91 or 3.17 per cent with a heavy trading value of Bt14.52 billion, with blue-chip stocks in the energy and banking sectors leading the market.

Adisak Kammoon, director of KGI Securities' Economic and Strategy Research Division, said the strong rally of the Thai stock market was bolstered by positive internal and external factors.

Internally, the ongoing political turmoil is expected to ease if the former premier and his wife decide to formally seek political asylum in the United Kingdom as many have speculated.

His departure leads to the euphoria that political stability would be reinstated. Due to political conflicts and economic problems, the SET index had lost 19.51 per cent since the beginning of this year until August 8.