Reuters: Hot Stocks: STOCKS NEWS THAILAND-Govt spending positive for banks, bldg materials, telecoms-Nomura

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STOCKS NEWS THAILAND-Govt spending positive for banks, bldg materials, telecoms-Nomura Aug 31st 2012, 04:45 Fri Aug 31, 2012 12:45am EDT Nomura said it favored banking, construction materials and telecoms, saying the Thai government's plan to invest 320 billion baht ($10.20 billion) per year over the next few years boded well for the earnings prospects in these sectors. "After overinvestment in the 1990s led to crisis in 1997, Thailand has since been underspending on infrastructure relative to its needs and growth. The country is now facing many bottlenecks from transport to telecoms to power to flood control," Nomura said in its Thailand strategy report. "That is about to change with the current government's plan to invest," the broker said. Its top picks include Bangkok Bank Pcl, Kasikornbank Pcl, Advanced Info Service Pcl, Siam Cement Pcl, PTT Global Chemical Pcl, Thai Oil Pcl and Glow Energy Pcl. Earnings in chemicals and refining companies should rebound in the third quarter thanks to higher oil prices and strong margins, it said. Thai benchmark SET index could rise by around 10 percent over the next 12 months along with the market's expected earnings per share growth of 18.3 percent, which is supportive of 2013 price to earnings multiple of 11.6 times, it said. (Reporting by Viparat Jantraprap in Bangkok; viparat.jantraprapaweth@thomsonreuters.com)

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