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STOCKS NEWS THAILAND-Bangkok Bank falls on loan growth concerns
July 2, 2012 / 7:01 AM / 5 years ago

STOCKS NEWS THAILAND-Bangkok Bank falls on loan growth concerns

Shares in Bangkok Bank Pcl, the country’s biggest bank, fell as much as 1.8 percent, underperforming the banking sector and the broader stock market, amid concerns of weak loan growth.

At the midsession break of 0530 GMT, Bangkok Bank shares were down 1.6 percent at 188.5 baht ($5.94). The banking subindex was up 0.8 percent while the benchmark SET index gained 1 percent.

Broker Thanachart Securities said it has downgraded the stock’s rating to ‘hold’ from ‘buy’, with a lower target price of 190 baht ($5.98) from 200 baht. Loan growth was expected to fall to 8 percent in 2013 from an estimated 13 percent in 2012, it said.

“BBL has been slow on tapping into retail loans which has led to a relatively slower growth in fee income compared to the industry,” it said.

1327 (0627 GMT)

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

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10:39 STOCKS NEWS THAILAND: Sriracha Construction surges on debut

Shares in construction firm Sriracha Construction Pcl SRICHA.BK gained as much as 25 percent on their stock market debut with the share price surging to 18.8 baht ($0.59), compared to the initial public offer price of 15 baht.

Sriracha shares were trading at 17.70 baht, with about 31 million shares having changed hands. The broader stock market .SETI was up 0.94 percent.

Broker Asia Plus Securities rated the stock a ‘buy’, with a target price of 19.56 baht, citing the stock’s low valuation, trading at 6 times price to earnings and its high dividend yield of 8.3 percent.

1035 (0335 GMT)

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

$1 = 31.76 baht

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