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STOCKS NEWS THAILAND-New president appointment lifts Thai Airways
September 17, 2012 / 6:13 AM / 5 years ago

STOCKS NEWS THAILAND-New president appointment lifts Thai Airways

Shares of national carrier Thai Airways International Pcl , which have been underperforming the broader blue-chips index, climbed to their highest in almost three months on Monday after the appointment of a new president.

Thai Airways shares were up 2.4 percent at 21.7 baht, having hit 21.9 baht earlier, the highest since June 26. The stock is up 8.5 percent this year versus a 22.4 percent gain of the SET50 index of blue chips.

The appointment of Sorajak Kasemsuvan as the new president on Friday improved the near-term outlook for the carrier, broker Maybank Kim Eng Securities said. It rated the stock ‘speculative buy’, with target price of 24 baht.

“The new president will be a key driver pushing the long term fleet expansion, as planed ... Our THAI valuation is very cheap, trading at an earnings multiple of 9.9 and price to book of 0.68 times and discounted from regional peers at an earnings multiple of 10.8 and price to book of 1.4 times,” it said.

Ten out of 17 analysts tracking the stock rated it a ‘strong buy’ or ‘buy’, six have a ‘hold’ and one has a ‘sell’ rating, according to Thomson Reuters Starmine.

1249 (0549 GMT)

(Reporting by Viparat Jantraprap in Bangkok; viparat.jantrarprapaweth@thomsonreuters.com)

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10:16 STOCKS NEWS THAILAND-Cyclical stocks set to return with QE3-CIMB

CIMB Research (Thailand) upgraded the country’s energy and petrochemical sectors to ‘trading buy’ from ‘neutral’, saying the launch of QE3 by the U.S. Federal Reserve should increase risk appetite, boding well for high beta, cyclical stocks.

“Thailand’s petrochemical and energy sectors are likely to outperform domestic sectors, a repeat of the pattern during QE1 and 2 when they outperformed the market and domestic-driven sectors by 2.5-3 times,” the broker said in a report.

The likely winners were companies with more sustainable growth driven by internal strengths, limited downside and no overhang, with PTT Global Chemical Pcl PTTGC.BK, Indorama Ventures Pcl IVL.BK and Siam Cement Pcl SCC.BK among top picks, it said.

Reflecting the oil price slide and weak earnings in the first half, the energy subindex .SETEN eked out a modest 3.4 percent gain so far this year, underperforming a 24.7 percent gain of the broader SET index .SETI.

1002 (0302 GMT)

Reporting by Viparat Jantraprap in Bangkok; viparat.jantraprapaweth@thomsonreuters.com

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