Shares in Krung Thai Bank Pcl, Thailand's
second-largest lender, gained as much as 4.3 percent to the
highest in two months after it reported a better-than-expected
quarterly result, prompting upgrades of earnings forecasts and
stock price target.
Krung Thai Bank shares were up 2.7 percent at 19 baht,
climbing at one point to 19.3 baht, the highest since Aug. 18.
It has risen 35.5 percent so far this year versus a 33.7 percent
gain of the banking subindex.
Broker KGI Securities raised its forecast for Krung Thai
Bank's 2012-2013 earnings by 8-10 percent and upgraded the
stock's price target to 21.5 baht from 20 baht. It maintained a
'neutral' rating, saying it was cautious on the bank's loan
"While KTB's operations continue to improve quarter on
quarter this year, its loan growth still lags its peers, as well
as the market's expectation, and depends much on the government
drawdown," the broker said in a report.
Seventeen out of 27 analysts tracking the company rated the
stock a 'buy' or 'strong buy', seven had a 'hold' and three had
a 'sell' or 'strong sell', according to Thomson Reuters
1124 (0424 GMT)
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(Reporting by Viparat Jantraprap in Bangkok;
email@example.com); Editing by Jijo
10:42 STOCKS NEWS THAILAND-CLSA raises benchmark index
12-month target to 1,500
CLSA raised its 12-month target on Thailand's benchmark SET
index .SETI to 1,500 from 1,350, citing strong domestic outlook
and the Bank of Thailand's 25 basis point policy rate reduction
on Wednesday among positive catalysts.
Large government infrastructure spending, starting in the
first half of 2013, and rising urban consumption could underpin
earnings growth and justify current multiples, CLSA said in a
market strategy report "The Wonder Years" dated Oct. 17.
The SET index was up 0.1 percent at 1,312.53. It has risen
almost 28 percent so far in 2012, the best performing major
market in Asia and among the world's top performers.
"Against backdrop of PM Yingluck and Thaksinomics II serving
out their full terms into 2015, we are positive on SET
prospects, and set our 12-month index target at 1500 (previous
1350) as we rollover towards FY14 looking earnings," the report
The broker assumed that SET P/E remains at 12.3 times now,
against average earnings per share growth of 15 percent per
annum over 2013-14, with a market price to book of 2.2 times.
Going into 2013, urbanization and consumption themes
continued to offer the highest growth, with financials and
consumer related stocks remaining the best way to play domestic
CLSA's top large cap picks included Siam Commercial Bank
SCB.BK, CP All CPALL.BK, Advanced Info Service ADVA.BK, and
Krung Thai Bank KTB.BK.
"The road towards our 1500 SET Index may be a gradual grind
in 2013, unless the Bank of Thailand (BOT) comes out to play
more often," it said.
1024 (0324 GMT)
(Reporting by Viparat Jantraprap in Bangkok; Editing by
Sunil Nair; firstname.lastname@example.org)