STOCKS NEWS THAILAND-Ch Karnchang hits 21-mth high on Xayaburi dam nod

Tue Nov 6, 2012 12:03am EST

Related Topics

Shares in builder Ch Karnchang Pcl surged as much as 2.7 percent to their highest in 21 months after the Lao government approved the construction of $3.5-billion Xayaburi dam on the Mekong river.

Ch Karnchang shares were flat at 9.30 baht thanks to profit-taking, a dealer said.

Uncertainty over the hydropower project, which accounts for 60 percent of Ch Karnchang's construction projects in value terms, capped the stock price this year.

It has risen 23 percent so far in 2012, underperforming other builders such as Sino-Thai Engineering and Construction Pcl which has gained 78 percent.

"The project approval is positive and will have a significant impact on Ch Karnchang's fundamentals. We are looking to upgrade earnings forecast and its price target to take into account the Xayaburi project," broker DBS Vickers Securities said in a report.

1156 (0456 GMT)

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

************************************************************

10:37 STOCKS NEWS THAILAND-Siam Makro falls to 3-week low after weak Q3

Shares in Siam Makro Pcl MAKR.BK fell 6.9 percent to 430 baht, a three-week low, after the cash-and-carry wholesaler reported weaker-than-expected earnings for the third quarter. (Full Story)

"Third-quarter sales revenue turns softer, up 14.3 percent YoY but down 1 percent QoQ possibly due to weak food price inflation witnessed in the first half rather than weak sales volume growth," Citigroup said in a report.

Citi maintained its 'sell' rating on the stock citing expensive valuation.

"While the company has delivered 24 percent YoY growth in its nine-month result, it still trails high consensus expectations," it said.

Siam Makro shares had risen 83 percent so far this year, outperforming a 61 percent gain of the commerce subindex .SETC and a 28 percent gain of the main SET index .SETI.

1025 (0325 GMT)

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

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.