STOCKS in Thai companies with operations in Cambodia performed strongly in Bangkok last week, following positive profit forecasts and new contracts.
Krung Thai Bank, one of Cambodia’s 28 commercial banks and Thailand’s second-biggest lender, closed at the end of last week on 13.3 baht (US$0.41) per share on the Stock Exchange of Thailand – its highest price since April 7.
On Thursday, Bloomberg reported that KGI Securities increased its profit forecast for the bank this year by 13 percent to 14.5 billion baht on strong loan growth and low non-performing loans.
Meanwhile, Thai telecommunication services company Samart Corp – owner of Cambodia Air Traffic Control – said Tuesday that its 99.17 percent subsidiary, One To One Contacts Co, had secured two call centre contracts totalling 525 million baht with Thai government agencies.
The company rose to its highest level in more than eight months to close that day, and ultimately the week, at 6.50 baht per share.
But Thai satellite operator Thaicom, majority owner of Cambodia's mobile operator Mfone, fell last week after reports that a government committee said it may need a new satellite.
Thaicom stock fell 3.2 percent to 6.1 baht, the biggest one-day fall in two weeks.
According to Bloomberg, Thaicom chief executive Arak Chonlatanon said the company had not received any formal notification from any state agencies.
Nevertheless, the stock fell a further 1.64 percent on Friday’s trading, closing the week at 6 baht.
However, Thaicom’s shares remain higher than its May 4 close of 5.2 baht, when the SET peaked before Bangkok was engulfed in political chaos.
Indeed, for some investors, the political instability is an “opportunity to buy”, according to the portfolio manager of Daiwa Securities Trust’s Thai Capital Fund Vijchu Chantatab.
In a statement released Friday, he pointed to the SET’s gain of 10.6 percent in the past month. The Daiwa fund, which invests only in Thai-listed companies, released the statement urging investors to heed the opportunity.