May 30, 2012 / 9:18 AM / 5 years ago

STOCKS NEWS THAILAND-First net foreign outflows seen in 5 months

Thailand’s stock market is set to post net foreign outflows in May, its first since November, as the European debt crisis unnerved investors.

Foreign investors were net sellers of $505 million worth of Thai stocks in May until Tuesday, after being net buyers over the past five months (December-April 2012) for a combined $3.1 billion, data from Thomson Reuters shows.

Fund flows were mixed in other Southeast Asian bourses. Indonesia posted $702 million in net foreign outflows so far in the month to Tuesday after taking in a total of $1.1 billion for two straight months to April, data shows. The net outflows in Indonesia in May were the biggest since August.

Net foreign outflows of Philippine stocks totalled $243 million for May until Tuesday after net inflows of $107 million in April.

Vietnamese stocks eked out $0.14 million in inflows in the same period after April’s $35 million in outflows.

1545 (0845 GMT) (Reporting by Viparat Jantraprap in Bangkok; viparat.jantraprapaweth@thomsonreuters.com)

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12:55 STOCKS NEWS THAILAND: PTT Global Chemical falls on cost concerns

PTT Global Chemical Pcl PTTGC.BK fell as much as 3 percent on concerns about the possible impact of higher feedstock costs on the earnings of the country’s biggest listed petrochemical firm.

PTT Global shares were down 2.6 percent at 56.25 baht ($1.77) at the midsession break of 0530 GMT, having hit 56 baht at one point. They have dropped 16 percent in May until Tuesday, underperforming the broader market’s .SETI loss of 6.09 percent.

The majority of PTTGC’s earnings are derived from gas-based olefin production, with feedstock supplied by parent company PTT Pcl PTT.BK. Uncertainties related to PTTGC’s gas-based feedstock agreement with its parent PTT have worried investors.

“While there are currently no negotiations to adjust the net-back price agreement, it is said to be constantly under review ... Against our base-case earnings impact of a potential change in gas price, we believe the stock has been oversold,” broker Kasikorn Securities said.

Kasikorn rates the stock at outperform, with a target price of 86 baht.

1240 (0540 GMT)

$1 = 31.74 baht Reporting by Viparat Jantraprap in Bangkok

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