Sept 9 (Reuters) - Shares in Thai building contractors jumped on Monday after a broker highlighted the positive longer-term outlook for the sector, especially if a debate on a huge infrastructure programme finally begins in parliament this month.
At the midsession break, shares in Ch Karnchang Pcl rose 4.95 percent to 21.20 baht, while Sino-Thai Engineering and Construction Pcl added 8.33 percent to 20.80 baht and Italian-Thai Development Pcl jumped 10.86 percent to 4.90 baht.
The sector was up 3.82 percent, while the main SET index was up 2.50 percent.
KGI Securities (Thailand) rated both Ch Karnchang and Sino-Thai a “buy” with the 2 trillion baht ($61.74 billion)infrastructure plan due to come up in parliament.
The research house said building contractors should outperform the overall market even if the government’s infrastructure programme faces further delays.
The programme, including the new high-speed rail link, was drawn up in January in an effort to boost trade and investment and to upgrade Thailand’s transport system. The programme is expected to be completed by 2020.
The contractors are making record-high profits and that trend should continue over the next three years, it said.
1251 (0551) (Reporting by Pairat Temphairojana; Editing by Jijo Jacob)
1327 STOCKS NEWS THAILAND-Hotelier Minor Int‘l up 5 pct as weak baht favours tourism
Shares in hotelier and leisure firm Minor International Pcl rose 5.45 percent on Monday after a broker highlighted the continued growth in tourism and said the firm would post higher profit in the second half than in the first six months.
The shares added 1.20 baht to 23.20 baht, climbing at one point by 5.91 percent, while the broader market was up 2.5 percent at the midsession break.
KGI Securities (Thailand) set a target price for Minor’s share of 28 baht, maintaining a “buy” recommendation due to the growth in tourism. It also said the current weakness of the baht should underpin the trend in tourism.
1308 (0608 GMT)(Reporting by Pairat Temphairojana) (Reporting By Pairat Temphairojana)