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
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)