STOCKS NEWS THAILAND-CIMB reiterates 'overweight' on hospital sector

CIMB Securities said it reiterated its 'overweight' rating on the hospital sector, on hopes that mergers and acquistions will continue to drive profit for the sector as well as the rise in incomes and medical tourism.

"We believe the M&A theme will continue to drive the sector, while rising income, increased medical tourism and higher illness intensity still underpin sector profitability. This should in turn allow strong players to swallow weaker ones," CIMB said in a research note.

The broker rated Bangkok Dusit Medical Services as its top pick in the sector and maintained a 'buy' rating with a target price at 126 baht.

"With potential catalysts from overseas expansion, we believe there could be more upside potential for Bangkok Dusit Medical Services than for its two local peers. Its valuations are still attractive compared with those of its peers," CIMB said.

Shares in Bangkok Dusit Medical Services remained flat, while its peer Bangkok Chain Hospital gained 0.52 percent and Bumrungrad Hospital fell 0.93 percent.

The main Thai index was up 0.53 percent.

1459 (0759 GMT)

(Reporting by Sinsiri Tiwutanond in Bangkok; sinsiri.tiwutanond@thomsonreuters.com)

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12:17 STOCKS NEWS THAILAND-Tisco hits over 5-month high after strong Aug loan growth

Shares in Tisco Financial Group rose more than 3 percent to its highest in over five months at 43.50 baht, after strong August loan growth.

Bualuang Securities maintained a 'buy' rating for Tisco with a target price of 55 baht, on hopes that strong loan growth will boost the company's third-quarter earnings.

"We expect Tisco to sustain lending momentum in September and beyond, as major automobile makers have ramped up production to meet strong consumer demand for new cars, boosted by the government's first-time car buyer tax rebate scheme," Bualuang said in a research note.

The broker noted that Tisco achieved a net lending amount of 219 billion baht ($7.04 billion) in August, a 26 percent increase from the previous year. It also expects the company to expand its corporate and SME lending in the upcoming quarter.

"GDP growth, boosted by the government stimulus spending, will provide further opportunities for the bank holding company to expand its corporate and SME lending (and fee income related to loans)," Bualuang said.

For the company statement, click

Tisco shares were up 2.98 percent at 43.25 baht, while the banking subindex gained 1.94 percent.

1201 (0501 GMT)

(Reporting by Sinsiri Tiwutanond in Bangkok; sinsiri.tiwutanond@thomsonreuters.com)

($1 = 31.09 Baht)

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11:12 STOCKS NEWS THAILAND-Maybank Kim Eng sees limited risks to energy sector

Refinery shares are set to take benefit from the upcoming US central bank meeting if a new stimulus measure is put in place, Maybank Kim Eng Securities said in a research note.

"Despite a weak world economic outlook, crude oil prices have remained flat, supported by the debt solution plans of the European Central Bank and Federal Open Market Committee, which have helped limit downside risks on crude oil prices," Maybank said.

"We believe foreign investors and local institutions will return to speculate on the sectors once again on their third quarter earnings, compounded by window dressing at the end of September," it added.

The broker expects refinery earnings will turnaround in the third quarter with high quarter-on-quarter growth, while naming Thai Oil Pcl as one of its share picks in the sector.

It expects an increase of $7 billion to $8 billion baht in Thai Oil's third-quarter net profit, a turnaround from the 6.903 billion baht ($222.03 million) loss in the second quarter.

At 0353 GMT, Thai Oil shares were up 1.87 percent at 68 baht, having hit 68.50 baht earlier, while the broader energy index gained 0.7 percent.

Esso led among refinery shares with a 2.86 percent gain, followed by a 2.46 percent rise in PTT Global Chemical , while Bangchak Petroleum rose 1.72 percent and IRPC remained flat.

1053 (0353 GMT)

(Reporting by Sinsiri Tiwutanond in Bangkok; sinsiri.tiwutanond@thomsonreuters.com)

($1 = 31.09 Baht)