BANGKOK - Italian-Thai Development Pcl (ITD), Thailand’s biggest construction company by sales, rose to the highest level in more than two years after Japan expressed interest in partnering the company in a Myanmar port project.
The shares climbed 3% to 5.20 baht as of 12.11pm in Bangkok trading, on course for the highest close since November 2010. The stock earlier jumped as much as 5%. Thailand’s benchmark SET Index (SET) added 0.8%.
Japan's government may invest and become the strategic partner in the development of a deepsea port and industrial estate at Dawei in Myanmar, Prime Minister Yingluck Shinawatra said Thursday after meeting Japanese Prime Minister Shinzo Abe in Bangkok. The move will ease concerns about the project’s funding and boost its viability, according UOB Kay Hian Securities (Thailand) Pcl.
"Bringing in a partner raises optimism over the project, which has been stalled for some time," Kowit Pongwinyoo, an analyst at UOB Kay Hian in Bangkok, said by phone Friday. "The project's feasibility has been in doubt because of the large amount of investment."
Italian-Thai won a concession from Myanmar's government in November 2010 to develop the US$8.6 billion project. A joint Thailand-Myanmar committee will draw up fund-raising and investment regulations for the project in February, Ms Yingluck said on Dec 17.