After negotiations with security chiefs, the protesters returned to their encampment, fearing Abhisit would declare a state of emergency that would allow security forces to break up their mass rally.

The "red shirts" back twice-elected former premier Thaksin Shinawatra and have taken aim at the military and so-called bureaucratic elites they say are meddling in politics and conspired to overthrow Thaksin in 2006.

Their fiery rhetoric represents a more confrontational approach and a level of brinkmanship not seen in the two weeks of peaceful rallies, which analysts say have won the protesters support but brought them no closer to toppling the government.

The lack of violence combined with Abhisit's steadfast military backing has encouraged foreign investors lured by cheap shares with high dividend yields to pour into Thailand's stock market in recent weeks.

On March 26, foreigners bought Thai stocks for a 24th straight session, spending a net 1.01 billion baht (US$31.2 million). They have purchased about 47 billion baht (US$1.5 billion) since February 22 as hot money continues to flow into regional bourses.

Thai Finance Minister Korn Chatikavanij said on March 26 capital inflows into the Thai bourse should continue for the foreseeable future, although any escalation in political tension could trigger outflows.

Anupon Sriard, an analyst at BFIT Securities said on March 27 the increased tensions were not likely to affect Thailand's financial markets when they reopen next week.