RPT-Thai stocks seen up after capital controls lifted

(Repeating item first sent on March 2)

By Khettiya Jittapong

BANGKOK, March 2 (Reuters) - The removal of capital controls is likely to send Thai stocks up on Monday as revived investor confidence in the country's financial markets could attract new funds in spite of anxiety over the global economic outlook.

Analysts said market upside could be limited by concerns over the impact of a recession in the United States regardless of signs of improvement in Thailand's economy with exports and imports rising at a record annual rate in January.

"Sentiment is good for capital markets. But fundamentally it's not been that good. As fund managers, we are cautious," said Alan Kam, chief executive officer at Manulife Asset Management.

The main Thai index .SETI rose 16 percent after reaching a seven-month low of 728.58 points on Jan. 24 on optimism that a new government would help restore consumer confidence and active buying from foreign investors.

Foreign investors bought Thai shares worth a net 31.3 billion baht ($995 million) in February, the first month of net buying after being net sellers since November. So far this year, they sold a net 3.8 billion baht of Thai shares.

The main index was up 0.43 percent to close at an eight-week high on Friday before the Bank of Thailand announced it would remove controls imposed in late 2006 to rein-in a surging baht. The introduction of the controls had triggered the biggest one-day stock sell-off in Thailand.

Analysts expect the baht to trade in range of 30-31 to the dollar in coming months.