Reuters: Hot Stocks: STOCKS NEWS THAILAND-Auto-parts stocks up on solid May auto sales

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STOCKS NEWS THAILAND-Auto-parts stocks up on solid May auto sales Jun 20th 2012, 04:41 Wed Jun 20, 2012 12:41am EDT Shares in auto-parts companies pushed higher, bucking a broad market weakness, after upbeat vehicle sales data for May along with a recovery of the automotive sector hit by flooding last year. The auto-parts subindex was up 0.8 percent, led by a 1.3 percent gain to 198.5 baht ($6.32) by Thai Stanley Electric Pcl and a 0.9 percent rise to 27.75 baht by Somboon Advance Technology Pcl. The benchmark SET index was down 0.28 percent. Thailand's sales of new cars and trucks in May surged to 115,943 units, up 108 percent on year, as automakers resumed production after severe floods while the government's incentives and new car models boosted sales, data showed. Broker Phillip Securities rated the sector 'overweight'. Somboon Advance, which sells parts for Kubota, and Stanley, a parts supplier for Honda, were among its top picks. "Growth momentum is likely to continue in the second quarter. Honda, which was hard hit by last year's floods, has resumed delivering ordered cars to its clients. The upcoming car model launches in the second half would also help spur consumer demand," it said in a report. "In the long run, capacity expansion of several big carmakers could be a key driver of the industry's long-term growth," it said. 1128 (0428 GMT) (Reporting by Viparat Jantraprap in Bangkok; viparat.jantraprapaweth@thomsonreuters.com) Link this Share this Digg this Email Reprints

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