|
Picking the winners
Stock investors have enjoyed a pleasant surprise for the year
to date, with the Stock Exchange of Thailand index up 20%
since January.
Meet
L.E.K. Consulting
L.E.K. Consulting is an international corporate advisory
firm with around 450 professionals worldwide. The company
is run as a single resource unit with 15 offices throughout
Europe, the United States and Asia-Pacific. There are more
than 60 professionals in the Asia-Pacific region, based in
Sydney, Melbourne, Auckland, Singapore, Bangkok, Shanghai
and Beijing.
The
dominators
On size alone, the banking sector dominates
the Stock Exchange of Thailand at nearly 30% of total market
capitalisation. Institutional investors considering taking
a position in Thailand inevitably must look to local banks,
not just on account of size, but due to their general position
as a proxy for the economy as a whole.
It's
all about value
The primary objective of a business
is to create economic value for investors or shareholders,
while also recognising the needs of other stakeholders such
as employees, suppliers, the community, the environment and
debt providers.
Brokers
and lenders cautous
The performance of finance and securities
companies improved significantly on the back of an improving
economy and stock market, but uncertainty caused by external
factors could be a drag on sustained growth in the second
half.
Worst
performer but solid fundamentals
The clouds over the communications
sector, the worst performer this year on the Stock Exchange
of Thailand with an average total shareholder return of -24.2%,
are expected to lift slightly by December.
All
systems go for carriers
Stabilised freight rates coupled
with foreign-exchange gains are expected to improve revenues
and profits of listed shipping firms and Thailand's national
airline, while lower financial costs and a rise in expressway
commuters will lift the revenue of Bangkok Expressway Co.
Higher
premiums boost profitability
The Sept 11 events sparked a sharp
lift in insurance premiums, especially for high-risk properties.
And customers in Thailand did not escape the fall-out.
Threadbare
years still have impact
Listed companies in the textiles, clothing and footwear sector
have not been among investors' favourites in recent years
as few of the firms have been able to show signs of a sustainable
recovery from the economic crisis of 1997-98.
Second-best
SET performer over the past decade
The pulp and paper
sector ranks second only to communications in providing the
best returns over 10 years to investors on the Stock Exchange
of Thailand, at 15.7%.
Power
back on but results are mixed
The first half of this year has been the start
of a comeback story for the global electronics industry. Rising
local capacity utilisation rates and a sharper-than-expected
pickup in sales have been cause for optimism about the electronic
components sector on the SET
Stronger
baht clips export giants
Unlike last year, listed companies
in the SET agribusiness sector are not figuring as prominently
in the investor spotlight, mainly due to the appreciation of
the baht, food safety concerns and falling world prices.
Mixed
pickings on the menu
Better prospects for expanded domestic consumption
are likely to drive the food and beverage sector this year,
but shares of listed companies in the group still remain unattractive
to investors, except for those of Thai Union Frozen Products
(TUF) and the Minor Food Group (MFG).
Investor
applause greets improved perferformances
Listed entertainment and recreation companies
have received a warm welcome from investors in recent years,
but three of the nine companies in the sector tend to attract
the lion's share of attention.
Some
plums for picking in quiet field
Despite the government's policy
to aggressively promote tourism, shares of listed hotel companies
are not considered attractive as they provide a lower return
on investment than in the overall market.
Phoenix
rises from ashes
The continuing improvement of the property
market has pushed up the performances of major listed developers,
making their shares very attractive to investors and offering
the highest returns on investment on the SET over the past
year.
Materials
benefit from building upturn
The prospects of the building and furnishing
materials sector look promising over the next six to 12 months,
on the back of the continuing recovery of the property business
since late last year, industry executives say.
Fashion
leads in tight market
Listed commerce firms were largely overlooked
by investors given the likely return on investment in a climate
of intense competition and low consumer buying power.
Defensive
stocks
The energy sector remains promising with stable
revenues in the long run, but in terms of returns to investors,
a handful of listed companies in the sector stand out. They
include Unique Gas, Banpu Plc, Lanna Resources and PTT Exploration
and Production Plc.
Upturn
in sector's business cycle is eagerly awaited
Long-term prospects for the petrochemical
sector are improving with the 12 listed companies making solid
headway in restructuring their debts and cutting production
bottlenecks.
|
