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Stock Market
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2010-08-30 01:59:33-04
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Thai stocks may rise on ending dispute
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BANGKOK, Aug 30 (Reuters) - Thai stocks may rise on Monday
as hopes of an end to an environmental dispute at the country's largest industrial estate induce further buying in big-cap petrochemical and energy stocks, analysts said. Favourable sentiment in Asian stocks would also lend support to the the Thai market, they said. "Buying momentum should continue from Friday. The Map Ta Phut optimism and gains on Wall Street on Friday should boost the market," said Parin Kitchaotornpitak, a senior analyst at Far East Securities. On Friday, Thailand's benchmark SET index rose 1.61 percent to 900.37, led by top industrial conglomerate Siam Cement Pcl and olefins maker PTT Chemical Pcl, which each gained about 3 percent. Buying interest came ahead of a Sept. 2 court verdict on the environmental dispute at Map Ta Phut and several analysts said its resolution could boost companies with projects suspended there, including PTT and Siam Cement. "We see less than 5 percent upside to PTT Chemical and Siam Cement earnings if the best-case scenario plays out, as we have already assumed all pending projects will start next year," broker Citi Investment Research said in a note dated Aug. 27. "We prefer PTT Chemical to Siam Cement, given PTT Chemical's strongest earning momentum in 2011 estimates among Asian petrochemical peers," it said. On Friday, foreign investors bought Thai shares worth a net $21.41 million, after net selling of $36.38 million over the previous two sessions. The Thai market has had net inflows of $65.09 million so far this year, according to stock exchange data. Its gain for the year rose to 22.58 percent, Asia's second-best performer. Far East's Parin pegged resistance for the SET index on Monday at 910, with support at 900 and 895.
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