"Red shirts" rally on, Thai PM Abhisit stands firm

Tens of thousands of red-shirted supporters of former prime minister Thaksin Shinawatra remained at their encampment in central Bangkok, frustrated that after four days of peaceful protests, the government showed no sign of calling fresh elections, which Thaksin's allies would be well placed to win.

The absence of violence and a growing view that Prime Minister Abhisit Vejjajiva can ride out the crisis lifted Thai stocks 1.4 percent by midday. The baht currency firmed.

Despite the tensions, foreign investors have been buyers of Thai stocks for the past 15 sessions, scooping up a net $850 million (565.9 million pounds) over that period, although volumes slowed this week.

"If we can get past this week, things should return to normal and fund flows should start building up again," said Patareeya Benjapolchai, president of the Stock Exchange of Thailand.

"Fundamentally, Thailand isn't bad looking," she added.

That message was reinforced by U.S. investment bank Morgan Stanley, which upgraded its recommendation on Thailand's stock market to "overweight" in a note to clients.

At the protest site, there were clear signs of fatigue. Some complained of failure to produce quick results. Others withered under Bangkok's scorching sun. Of the 150,000 demonstrators who massed on Sunday, many were returning to their rural provinces.

"They have been on the streets since Saturday and it's tough. We will keep going because this is about the long-term benefit to Thailand," said Jaran Ditthapichai, a protest leader.

Early on Tuesday, "red shirts" lined up under a tent to give blood to medical volunteers and nurses. The leaders said this would be spilt outside Abhisit's office in what they are calling a symbolic shedding of blood for democracy.