Despite crisis, Thai shares jump 3.07 per cent on regional rebound

Sep 8, 2008, 10:09 GMT

Bangkok - Despite Thailand's ongoing political crisis, its stock market jumped 3.07 per cent Monday, boosted by the US government's takeover of mortgage giants Fannie Mae and Freddie Mac and growing optimism about the world economy.

The Stock Exchange of Thailand index ended at 665.66, up 19.86 points.

'Our market was just following the other markets today,' said Puwadorn Labudomsuk, an analyst at Asia Plus Securities. 'The rebound was led by foreign investors. Many local investors are waiting to see what the political situation will be tomorrow.'

Bangkok has been under a state of emergency since September 2 after a pre-dawn clash between pro-government and anti-government groups in the capital that left one person dead and 43 injured.

Protestors have seized Government House, the government's administrative centre, since August 26, demanding that Prime Minister Samak Sundaravej resign.

Samak has refused to step down, but the army, which is responsible for enforcing the emergency decree, has refused to use force to oust the protestors from Government House.

Political tensions were expected to peak Tuesday when the Constitution Court is scheduled to rule on whether Samak violated the charter by hosting a cooking programme after he became premier.

His cabinet, having lost its offices, is also to hold its weekly meeting in Udon Thani, 450 kilometres north-east of Bangkok, on Tuesday.

More clashes between pro-government and anti-government forces were anticipated in that city, which is deemed a stronghold for Samak's People Power Party.