Shares in Krung Thai Bank Pcl fell 5.1 percent and were poised to post their biggest one-day fall in a month, after the state-run bank reported lower-than-expected quarterly earnings due to higher costs.
Analysts remained bullish on the stock, with 25 out of 29 analysts tracking the bank rated it 'strong buy' or 'buy', two analysts have 'hold' and two put 'sell' rating, according to Thomson Reuters StarMine.
They put the mean price target of 28.24 baht on the stock. Krung Thai Bank shares, the most actively traded on Thai main stock exchange, were trading down at 24.2 baht by 0826 GMT. About 97 million shares changed hands, 1.9 times a full day average over the past 30 sessions.
The banking sub-index was down 0.9 percent while the main SET index was down 0.4 percent.
"KTB reported a lower-than-expected first quarter net profit due mainly to a one-time staff bonus. However, we believe that the growth outlook over the next few years remains sound, thanks to the solid economy and public investment," Maybank Kim Eng Securities said.
For Krung Thai Bank earnings report, click 1545 (0845 GMT) (Reporting by Viparat Jantraprap in Bangkok; Editing by Anand Basu)
12:03 STOCKS NEWS THAILAND-Nomura ups Kasikornbank price target, makes it top pick
Nomura Equity Research raised its price target on Kasikornbank Pcl KBAN.BK to 254 baht from 247 baht and made it top sector pick, citing Thailand's fourth-largest lender's strong earnings and its exposure to the high-performing corporate loan segment.
Kasikornbank shares were up 0.5 percent at 209 baht after touching a high of 210 baht earlier in the session. The broader banking index .SETB was down 1.4 percent.
Nomura said it expects KBANK to be the most profitable among Thailand banks by 2014, mainly due to its exposure to the accelerating corporate/SME loan segment.
Retail growth was expected to slow sharply through 2014 due to a pick-up in non-performing loans (NPLs) in the car loan segment while corporate/SME growth would accelerate amid business confidence, Nomura said.
"KBANK is geared towards the corporate/SME segment -- 70 percent of loans -- and is seeing rising loan spreads and fee income, plus a falling cost structure," the broker said.
Kasikornbank reported a 12.4 percent rise in its quarterly net profit last week. (Full Story)
Nomura maintained a 'buy' rating on the stock and made it its top pick in the sector, replacing Bangkok Bank Pcl BBL.BK which reported a slightly weaker-than-expected first quarter. (Full Story)
1138 (0438 GMT)
(Reporting by Viparat Jantraprap in Bangkok; Editing by Bijoy Koyitty)