BANGKOK: Thai shares hit a three-week high on Thursday on heavy buying in large-caps and banks amid expectations of lower interest rates, despite continuing political uncertainty, while the Philippines rose to a one-week high aided by foreign buying. The key SET index ended up 1.9 percent at 1,301.48, the highest since Dec. 26, with Advanced Info Service and Krung Thai Bank among the top gainers. Trading volume was relatively high, with technical-led buying heavy around the 1,300 level, said Teerawut Kanniphakul, strategist at broker CIMB Securities (Thailand). Domestic institutions bought shares for a third consecutive session on Thursday, Thomson Reuters data showed. A number of so-called trigger funds, which redeem when the index hits a target level, have piled into low-valuation shares, said Phillip Securities. However, caution remained as protests in Bangkok escalated, trying to force out the government and calling for a reform before an election. The caretaker government has confirmed a general election will be held on Feb. 2. Citi Research said the unpredictable politics could increase the chances of a rate cut by the Bank of Thailand's Monetary Policy Committee (MPC) next week. "Even if the rate cut event doesn't happen next week, pushing back elections as Bangkok is still under siege, may revive the likelihood of more rate stimulus," Citi said in a report dated Jan. 15. Among the bright spots, the Philippine index gained 0.4 percent to 5,982.24, with foreign investors buying shares worth a net 125 million pesos ($2.78 million) while Vietnam rose 1.3 percent to a 3-1/2 year high. Major Southeast Asian markets reversed early gains, with Malaysia sliding 0.6 percent to near seven-week lows ahead of a market holiday on Friday while Indonesian stocks edged down 0.7 percent after a rally earlier in the week. Singapore edged down 0.1 percent, weighed down by commodities shares, including Wilmar International Ltd

SOUTHEAST ASIAN STOCK MARKETS Change on day Market Current Prev Close Pct Move TR SE Asia Index* 385.54 384.98 +0.15 Singapore 3140.44 3143.25 -0.09 Kuala Lumpur 1813.01 1824.03 -0.60 Bangkok 1301.48 1277.03 +1.91 Jakarta 4412.49 4441.59 -0.66 Manila 5982.24 5958.12 +0.40 Ho Chi Minh 533.54 526.68 +1.30 Change on year Market Current End 2013 Pct Move TR SE Asia Index* 385.54 388.37 -0.73 Singapore 3140.44 3167.43 -0.85 Kuala Lumpur 1813.01 1866.96 -2.89 Bangkok 1301.48 1298.71 +0.21 Jakarta 4412.49 4274.18 +3.24 Manila 5982.24 5889.83 +1.57 Ho Chi Minh 533.54 504.63 +5.73 * The Thomson Reuters South East Asia Index is a highly representative indicator of stocks listed in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. Stock Market Volume (shares) Market Current Volume Average Volume 30 days Singapore 162,248,400 179,536,867 Kuala Lumpur 188,760,700 103,440,210 Bangkok 6,483,549 4,931,713 Jakarta 3,157,299,900 2,923,579,853 Manila 44,879 66,232 Ho Chi Minh 97,753 86,203- Reuters

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Southeast Stocks - Thai shares breach 1,300; Philippines at 1-week high