Published on Wednesday, 04 June 2014 18:40
BANGKOK: Thai shares recovered from early losses today with tourism stocks outperforming after the military government lifted the curfew in tourist towns while other Southeast Asian indexes eased ahead of a European Central Bank meeting tomorrow.
The tourism sector is expected to recover after Thailand’s ruling military council lifted the curfew in some tourist areas, including the popular beach resorts of Pattaya and Phuket.
“We see some positive signs for tourism sector to recover in the second half of 2014. It may take 1-3 months for short and medium-haul market to come back to Thailand, 3-5 months for Europe and the US,” said analyst Sittichai Duangrattanachaya of broker Maybank Kim Eng.
Hotel chain operator Central Plaza Hotel Pcl, which derives more than a third of its revenue from tourist areas, said its online bookings had tripled.
The SET index was up 0.03 points at 1,454.27 at midday, with shares of airport operator Airports of Thailand climbing almost 1 per cent to a one-month high.
The benchmark fell in early trade as investors cashed in the overbought market. Thai shares rallied on Monday and yesterday after Moody’s reaffirmed Thailand’s rating and an index of consumer confidence jumped on hopes the army government would revive the stumbling economy.
Foreign investors bought shares over the past two sessions worth a net 5.8 billion baht (RM573.9 million), after offloading a net 33.1 billion baht in nine days since the imposition of martial law on May 20.
Technically, Thai shares could face profit-taking as they were overbought, broker Phillip Securities said.
In Singapore, shares fell to a one-week low after a survey showing the city-state’s manufacturing activity grew in May but at a slower pace than in the previous month, prompting profit-taking.
The Philippine index edged a tad lower, climbing at one point to its highest in more than one week after data showed a strong budget surplus for April.
Stocks in Indonesia, Malaysia and Vietnam pulled lower after gains in the previous session.
Thai Shares Recover As Curfew Is Lifted In Tourist Towns