Thai Trading Surges to Nine-Year Peak.

Jul. 4--Thai stocks gained 2.53 percent yesterday on the highest trading turnover seen in 912 years, with continued strong foreign buying helping to boost the exchange.

The Stock Exchange of Thailand index closed at 489.8 points, up 12.07, on turnover worth 37.1 billion baht. Foreign investors were net buyers of 1.72 billion baht in securities yesterday, boosting their total for the year to over 22 billion baht.

Strong economic growth, falling interest rates and improved corporate profits have helped push the Thai market to be one of the best emerging markets in the world, rising nearly 30 percent in the first half.

Prime Minister Thaksin Shinawatra said the gains in the market were being led by foreign inflows, with investors attracted to the country's steady economic growth and strong political and social stability.

When compared with the SET's pre-crisis high of nearly 1,800 points, the market overall still had room for growth, he said.

"You need to consider that the potential for Thailand is very good, that the opportunity for the baht to strengthen exceeds that of weakening, then the equities market is not that high. These are the points that investors are looking at," Mr Thaksin said.

"Strong confidence is helping draw capital. And so we will encourage good companies to enter the stock exchange, particularly state enterprises, to help efficiently tap this capital."