Shares in builder Italian-Thai Development Pcl rose
as much as 1.5 percent, outpacing construction shares and the
broader market, after the management told analysts it had no
plans to raise capital to fund the Dawei project in Myanmar.
Italian Thai shares were up 0.5 percent at 4 baht, climbing
at one point to 4.06 baht, the highest since Feb. 22. Its
smaller peers Ch Karnchang and Sino-Thai Engineering and
Construction each lost almost 1 percent.
The benchmark SET index was down 0.3 percent.
"Management stated that ITD does not plan to increase its
capital any time soon despite its debt-equity ratio of 3:1 and
signifcant capex requirements to build the project in Myanmar,"
the broker said in a report dated Oct. 26
To raise funds for the project, it plans to start selling
land in the Dawei industrial estate in 2013, selling a stake in
its huge potash mine in Thailand, getting the Thai government to
invest up to 75 percent of the infrastructure projects and
borrowing from JBIC and Thai banks, the broker said.
Italian Thai shares have risen 11 percent so far in 2012,
underperforming a 70 percent gain in Sino Thai and a 25 percent
rise in the SET index, amid concerns over its stretched balance
sheet and potential capital increase.
1121 (0421 GMT)
(Reporting by Viparat Jantraprap in Bangkok; Editing by
Sunil Nair; email@example.com)