Reuters: Hot Stocks: STOCKS NEWS THAILAND-CLSA raises benchmark index 12-month target to 1,500

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STOCKS NEWS THAILAND-CLSA raises benchmark index 12-month target to 1,500 Oct 19th 2012, 03:42 Thu Oct 18, 2012 11:42pm EDT CLSA raised its 12-month target on Thailand's benchmark SET index to 1,500 from 1,350, citing strong domestic outlook and the Bank of Thailand's 25 basis point policy rate reduction on Wednesday among positive catalysts. Large government infrastructure spending, starting in the first half of 2013, and rising urban consumption could underpin earnings growth and justify current multiples, CLSA said in a market strategy report "The Wonder Years" dated Oct. 17. The SET index was up 0.1 percent at 1,312.53. It has risen almost 28 percent so far in 2012, the best performing major market in Asia and among the world's top performers. "Against backdrop of PM Yingluck and Thaksinomics II serving out their full terms into 2015, we are positive on SET prospects, and set our 12-month index target at 1500 (previous 1350) as we rollover towards FY14 looking earnings," the report said. The broker assumed that SET P/E remains at 12.3 times now, against average earnings per share growth of 15 percent per annum over 2013-14, with a market price to book of 2.2 times. Going into 2013, urbanization and consumption themes continued to offer the highest growth, with financials and consumer related stocks remaining the best way to play domestic growth. CLSA's top large cap picks included Siam Commercial Bank , CP All, Advanced Info Service, and Krung Thai Bank. "The road towards our 1500 SET Index may be a gradual grind in 2013, unless the Bank of Thailand (BOT) comes out to play more often," it said. 1024 (0324 GMT) (Reporting by Viparat Jantraprap in Bangkok; Editing by Sunil Nair; viparat.jantraprapaweth@thomsonreuters.com) Link this Share this Digg this Email Reprints

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