March 29 (Reuters - Shares in construction firms rallied, outperforming the broader stock market, reflecting hopes that the parliament would approve 2 trillion baht ($68.29 billion) infrastructure loans.
Members of the parliament are due to vote the 2-trillion-baht loan bill for infrastructure projects when the parliament’s first reading debate ends later in the day.
Shares in top contractor Italian-Thai Development Pcl rose 4.1 percent to 7.55 baht, Sino-Thai Engineering and Construction Pcl jumped 5.4 percent to 29.25 baht and Ch Karnchang Pcl surged 6.4 percent to 25.75 baht.
Broker KGI Securities said its top picks were Ch Karnchang and Sino Thai, with stock price targets of 37 baht and 40.5 baht respectively.
“As a first class contractor in every construction format and a bidding success ratio of 20 percent, Ch Karnchang expects to be rewarded additional works of 60 billion baht ($2.05 billion) a year during 2013-15,” the broker said.
It expected Sino Thai to post a record earnings worth 1.3 billion baht ($44.39 million) this year.
$1 = 29.285 baht Reporting by Viparat Jantraprap in Bangkok; Editing by Bijoy Koyitty