Thai Stock Exchange Closes Just Shy of 500 in Heavy Trade.

Jul. 5--Thai shares yesterday rose 1.21 percent on heavy turnover exceeding 30 billion baht, with the Stock Exchange of Thailand index closing in on the 500 point barrier as retail investors continued to switch assets from bank deposits to equities in search of higher yields.

The SET index yesterday closed at 495.72 points, up 5.92 points, on trade worth 32.79 billion baht. Leading gainers were the banking sector, which increased 4.92 percent, finance, up 3.01 percent and communications, up 0.8 percent.

Saravut Tachochavalit, research manager at Sicco Securities, said the sentiment yesterday was very positive with the index swinging heavily during intra-day trading.

The Thai market has gained about 31 percent from the time earlier this year when the index was at 380 points and retail investors started to invest more.

"With good economic fundamentals, the stock market could rise further. But the SET index has jumped sharply in a short period, and it could pose risks from profit taking and some foreign funds may adjust their portfolios," he said.

The baht has now stabilised at between 41.67-41.69 against the US dollar.

Mr Saravut predicted resistance levels next week at 502-508 points and support levels at 480-487 points.