STOCKS NEWS THAILAND-Thai banks' Q3 earnings seen up 23 pct-CIMB

Tue Oct 9, 2012 6:30am BST

CIMB Research expects listed Thai banks to post an average year-on-year net profit growth of 23 percent for the third quarter on strong loan growth and healthy insurance and card businesses.

The broker said its forecast was marginally below consensus while it maintained an 'overweight' rating for Thai banks.

"Given already-generous consensus estimates, we do not expect positive earnings surprises for the market, unlike the past two quarters," it said in a note.

"Although our optimism has waned in view of macro headwinds and less compelling valuations, we remain overweight. Some share-price consolidation is expected before the sector resumes its re-rating, led by solid medium-term demand for investment and consumption loans," CIMB said.

Banking shares offered investors a relatively cheap exposure to strong domestic economy, but valuations were no longer at bargain levels, it said.

The bank subindex was up 0.19 percent. It has risen 36.7 percent so far this year versus a 27.7 percent gain of the broader SET index.

1211 (0511 GMT)

(Reporting by Viparat Jantraprap in Bangkok; viparat.jantraprapaweth@thomsonreuters.com); Editing by Jijo Jacob

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11:00 STOCKS NEWS THAILAND-CIMB Thai falls back after Bank of Ayudhya buy denial

Shares in CIMB Thai Bank Pcl CIMBT.BK retreated from a near 1-1/2 year high after the bank denied a newspaper report about a plan by its parent, CIMB Group Holdings Bhd CIMB.KL, to buy a stake in Bank of Ayudhya.

CIMB Thai Bank shares were down 5.7 percent at 2.64 baht, after Monday's 16.7 percent surge to 2.8 baht, the highest since April 2011, triggered by a newspaper report that quoted a market source as saying that Malaysian bank CIMB had conducted due diligence on a plan to acquire about 25 percent stake in Bank of Ayudhya BAY.BK from General Electric Co GE.N. (Full Story)

"There have been no material developments at the Bank," CIMB Thai said in a statement to the stock exchange.

For the company statement, click (Full Story)

1043 (0343 GMT)

(Reporting by Viparat Jantraprap in Bangkok; viparat.jantraprapaweth@thomsonreuters.com); Editing by Jijo Jacob

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09:13 STOCKS NEWS THAILAND-Maybank Kim Eng raises Krung Thai bank price target

Maybank Kim Eng Securities raised its price target on state run Krung Thai Bank Pcl KTB.BK to 25 baht from 19 baht, reflecting strong loan growth outlook boosted by government spending.

On Monday, Krung Thai Bank shares closed down 0.5 percent at 18.6 baht. It was up 32.7 percent in 2012 versus a 36.6 percent gain of the banking subindex .SETB.

The broker raised loan growth forecasts for 2012-2014 to 12.3 percent, 14.1 percent and 14.5 percent, respectively, outperforming banking sector average of 10 percent while net profit was expected to rise by a 32.6 percent compound annual growth rate for 2012-2014, it said in a report.

"After the Lehman crisis in 2008-09, Thai loan demand recovered strongly. In 2010-11, the corporate loan demand was for private investment and M&A deals. This year, 2012, is the year of retail banking from government stimulus policies," it said.

"From 2013F onward, we believe the government seven year mega projects of 2.27 trillion baht will create the next loan demand wave, and we expect KTB to gain the most," it said.

0903 (0203 GMT)

(Reporting by Viparat Jantraprap in Bangkok; viparat.jantraprapaweth@thomsonreuters.com)

(Editing by G.Ram Mohan)

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