Reuters: Hot Stocks: STOCKS NEWS THAILAND-IRPC on 4-month high; broker says PTTGC merger likely

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STOCKS NEWS THAILAND-IRPC on 4-month high; broker says PTTGC merger likely Sep 11th 2012, 08:19 Tue Sep 11, 2012 4:19am EDT Shares in refiner IRPC Pcl rose 5.58 percent to a 4-month high at 4.16 baht, as a brokerage saw strong potential for the company's merger with PTT Global Chemical. DBS Vickers Securities rated the shares 'buy' with target price at 5.30 baht, saying the likely merger with PTT Global Chemical will unlock IRPC's hidden value by helping it cut costs and launch joint investment in polypropylene projects. The broker added that IRPC is currently looking into investing in polypropylene projects and may need up to $500 million to $700 million in investment. "IRPC current share price seems to have a high valuation due to limited returns on assets. However, it is likely to pick up in the long run, since the existing assets are there and ready to be improved and developed for added-value," DBS said in a research note. At 0802 GMT, IRPC shares rose 4.57 percent to 4.12 baht. 1503 (0803 GMT) (Reporting by Sinsiri Tiwutanond in Bangkok; sinsiri.tiwutanond@thomsonreuters.com) ************************************************************ 12:57 STOCKS NEWS THAILAND-Macro data points to loan growth for Thai banks - Nomura July macroeconomic data supports corporate and SME loan growth for Thai banks in the second half of this year, Nomura said. "Our view is that corporate and SME loan growth will surprise on the upside through the fiscal year 2014, as we believe an investment cycle is developing in Thailand for the first time since the 1997 financial crisis," Nomura said in a report. It rated Bangkok Bank Pcl, the country's biggest bank and largest player in SME and corporate lending, as its top pick in the sector. "Retail growth continues to accelerate, although we argue that upside risks to expectations will be difficult, given relatively high expectations," Nomura said. "System liquidity remains relatively high from an historical prospective, but we expect pressure to continue for the smaller banks given their limited deposit franchises and an unlikely lower interest rate outlook," it added. At the midsession break at 0535 GMT, Bangkok Bank shares were down 1.03 percent to 192.50 baht, while the broader banking index fell 0.84 percent. The banking subindex has risen 30 percent so far this year, compared to a 22 percent gain in the main Thai index. 1235 (0535 GMT) (Reporting by Sinsiri Tiwutanond in Bangkok; sinsiri.tiwutanond@thomsonreuters.com) ************************************************************ 11:18 STOCKS NEWS THAILAND-Airports of Thailand hits record high on commercial deals Airports of Thailand rose 2.52 percent to a record high of 71.25 baht amid brokers' expectations that recent commercial deals with King Power Duty Free Co and The Mall Group could boost its revenue by 10 percent per annum through the course of the 10-year contract. AOT said on Monday that King Power and The Mall Group were awarded 10-year contracts to operate commercial spaces at Bangkok's Don Muang Airport. The airport is scheduled to reopen for international flights on Oct. 1, 2012. DBS Vickers Securities gave AOT a 'buy' rating with target price at 78 baht. "[The effects] are positive and in line with our expectations. [The move] will help raise cash for the company as King Power and The Mall had agreed to provide a minimum return of 1 billion baht per year," DBS said in a research note. "We like AOT and chose it as our top pick within the transport sector, seeing that it will benefit from the rise in Thailand's travel demands, being a single operator, and limited business risks," the broker added. Several other brokers also rated the shares 'buy' on hopes that the commercial contracts will boost AOT's revenue. At 0359 GMT, AOT shares were up 2.16 percent at 71 baht, while the main Thai index gained 0.04 percent. 1102 (0402 GMT) (Reporting by Sinsiri Tiwutanond in Bangkok; sinsiri.tiwutanond@thomsonreuters.com) Link this Share this Digg this Email Reprints

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