STOCKS NEWS THAILAND-Italian-Thai shares up despite water project delay
Shares in Thailand's largest construction firm Italian-Thai Development Pcl climbed as much as 6.7 percent on expectations that the company's water management project would move forward pending an environmental impact assessment (EIA) despite a court order.
Italian-Thai shares were up 2.86 percent at 5.40 baht after earlier touching 5.60 baht, while the broader SET index is up 1.16 percent.
On June 18, the government selected four winners for the water management projects and other infrastructure work that are expected to drive the economy in the next few years. A consortium led by Italian-Thai won five of the nine contracts with a bid of 109 billion baht.
"The market understands that the water management project is still moving forward, even though it may have to go through a public hearing," said Therdsak Thaveeteeratham, head of research at Asia Plus Securities.
He has a "buy" rating on Italian-Thai shares with a target price of 8.6 baht.
On Thursday, a Thai court ordered the suspension of planned flood control project after a group of environmental activists asked the court to delay the projects pending an EIA and a health impact assessment.
1531 (0831 GMT)
($1 = 31.1500 Thai baht) (Reporting by Pairat Temphairojana; Editing by Anand Basu)