STOCKS NEWS ASEAN-Jefferies starts Thailand with 'bullish'

Jefferies initiated coverage of Thailand's stock market with a 'bullish' rating, saying the profit cycles and dividend yields of listed companies remained favourable.

"We expect Thailand to outperform its emerging market peers, and switch from Indonesia to Thailand," the broker said in a report. It rated Indonesia 'bearish'.

In contrast to other emerging markets, Thailand appeared to be moving through the early stages of a capex and investment boom while higher commodity prices have encouraged spending on agricultural and energy sectors, it said.

"The equity market is not cheap in historical terms and the currency is no longer inexpensive; however, the profit cycle is likely to be much less volatile than many other markets. The dividend yield of the equity markets also remains favourable," it said.

Thailand's benchmark SET index had risen 25.5 percent so far this year, Southeast Asia's best performer, higher than an 11 percent gain of Indonesia's main Jakarta Composite Index.

1328 (0628 GMT)

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