Thai shares up on referendum, inflows
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The Stock Exchange of Thailand Index ended higher at noon, as the draft charter was passed and portfolio inflows continue.
At noon, the Index rose 17.94 points or 1.18 per cent to 1,536.63 per cent, on turnover of Bt37 billion. At the open, the Index surged 20.08 points.
Tisco Securities noted in a comment sent to The Nation that the "yes" vote to the draft charter would be positive for market sentiment, as it will mark a clear step towards the return of democracy in Thailand. In its view, a “No” vote would almost certainly cause the market to retract, as this would increase political uncertainty and raise concerns about fresh delays in the election timetable.
Foreign investors have bought more than Bt80 billion net of Thai shares since the beginning of this year.
According to DBS Vickers Securities (Thailand), money flows into emerging markets have been a major driver for stock gains as well as pushing bond yields down as global investors seek higher returns and allocate some of their funds into riskier assets.
