Reuters: Hot Stocks: STOCKS NEWS THAILAND-Tax concerns drag down telecoms shares

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STOCKS NEWS THAILAND-Tax concerns drag down telecoms shares Jul 19th 2012, 07:30 Thu Jul 19, 2012 3:30am EDT Concerns about a possible fresh tax on telecom operators triggered selling in telecoms shares, brokers said, sending the biggest operator Advanced Info Service to a one-week low and Total Access Communication to a three-day low. The excise department director-general was seeking to collect excise tax from telecoms firms to keep the budget deficit from widening, according to reports by local newspapers. "We view this as noise as the revenue department is probably looking at every way to fund the government's heavy spending. We would rather wait for a more credible figure from the government to indicate such a change," said broker Kasikorn Securities. "We remain bullish on the outlook about the industry's liberalisation and maintain our 'outperform' call on Advanced Info Service," it said. At the midsession break, Advanced Info Service shares fell 2.5 percent to 197.5 baht, while Total Access shares dropped 2.5 percent to 79.5 baht. T r ue Corporation Pcl edged up 0.5 percent at 4.10 baht, falling at one point to 4.06 baht. 1401 (0701 GMT) (Reporting by Viparat Jantraprap in Bangkok; viparat.jantraprapaweth@thomsonreuters.com) ************************************************************ 13:21 STOCKS NEWS THAILAND: IRPC up on better second-half outlook Shares of refiner IRPC Pcl IRPC.BK gained as much as 2.7 percent, hitting a one-month high, as the prospect of higher gross refining margins and petrochemical spreads lifted optimism about its earnings for the second half, brokers said. At the mid-session break of 0530 GMT, IRPC shares were up 0.53 percent at 3.78 baht, an increase of 5.6 percent so far in the July-September quarter. They fell 23.5 percent in the previous quarter as declining oil prices weighed on earnings. Broker Phillip Securities rated the stock 'buy', with a target price of 4.9 baht. It expected IRPC to report a net loss of 2.6 billion baht in the April-June quarter compared with a net profit of 2.98 billion baht for the same quarter last year. "We expect earnings performance in the second half to pick up on the back of a pick-up of gross refining margin on higher diesel demand from Indonesia and stock of finished oil staying at low level," it said in a report. "If global oil prices stand around this level, petrochemical spread is expected to stay elevated for a while," it said. Four out of 11 analysts tracking the company rated the stock a 'strong buy' or 'buy', four put a 'hold' and three had a 'strong sell' or 'sell'. 1257 (0557 GMT) (Reporting by Viparat Jantraprap in Bangkok; viparat.jantraprapaweth@thomsonreuters.com) ************************************************************ 12:14 STOCKS NEWS THAILAND: KGI raises Kasikornbank target price KGI Securities raised the target price on Thailand's fourth-largest lender Kasikornbank Pcl KBAN.BK to 200 baht ($6.31) from 190 baht, and maintained a n 'outperform', citing strong earnings in the first six months of this year. The broker also revised upwards the bank's earnings forecast for 2012 and 2013. Kasikornbank shares were down 1.8 percent at 163 baht, while the broader index .SETI was down marginally. It reported a better-than-expected 28 percent rise in April-June earnings, boosted by strong loan growth and higher revenue from its insurance business. Its six-month net profit jumped 37 percent to 18.4 billion baht. (Full Story) "With the bank's strong first-half earnings and the potentially stronger lending momentum, as well as earnings, in the second half, we revised up our 2012-13 forecasts by 15 percent and 11 percent, respectively, mainly on higher non-net interest income (NII)," KGI said. For the company statement, click (Full Story) 1203 (0503 GMT) (Reporting by Viparat Jantraprap in Bangkok; viparat.jantraprapaweth@thomsonreuters.com) ($1 = 31.72 baht) Link this Share this Digg this Email Reprints

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