ASEAN KEY DESTINATIONS
ASEAN Markets, Strong Buy on Thailand Stock Exchange Shayne Heffernan
ASEAN Markets, Strong Buy on Thailand Stock Exchange
Given the gunfights in the streets of Bangkok, M79 grenades exploding and the stock exchange on fire, Thailand might be the last place for investors to want to put their money. The market will not open today and it is possible they will be closed for a little longer, but when the do open it is worthwhile buying.
But the turmoil, which has killed and injured far too many people, has had a remarkably limited effect on local financial markets. Investors, myself included have judged that the disturbances are largely restricted to a high-profile but small district of central Bangkok do not offer a huge threat to Thailand’s economic stability.
There is plenty of upside in Thailand. Korn Chatikavanij, the finance minister, said this month that the official forecast of 4.5 per cent growth in 2010 would be achieved despite the turmoil. That may prove optimistic, with officials saying this week the crisis might cost the country 0.5 of percentage point in GDP growth.
Foreign investors have been taking money out of Thai equities. But the total net withdrawal of about $1bn is still short of the $1.2bn that came into Thailand in the first four months. By comparison, nearly $5bn net was taken out during 2008 as the global financial crisis struck.
If you can not invest in Thailand directly you should look at NYSE:TTF and NYSE:THD.
iShares MSCI Thailand Index Fund (NYSE:THD)
iShares MSCI Thailand Investable Market Index Fund (the Fund) seeks to provide investment results that correspond generally to the price and yield performance, of the MSCI Thailand Investable Market Index (the Index). The Index is a free float adjusted market capitalization index designed to measure broad-based equity market performance in Thailand.
The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. The Fund may or may not hold all of the securities that are included in the Index. It invests in secots, such as financial, energy, communications, industrial, consumer cyclical, basic materials, consumer non-cyclical, utilities and technology. The Fund’s investment advisor is BlackRock Fund Advisors.
Thai Fund Inc. (NYSE:TTF)
The Thai Fund, Inc. (the Fund) is a non-diversified, closed-end management investment company. The Fund’s investment objective is long-term capital appreciation through investment primarily in equity securities of companies organized under the laws of the Kingdom of Thailand. The Fund makes its investments in Thailand through the Thai Investment Plan (the Plan).
The Fund is the sole unit holder of the Plan. The Fund may invest in unregistered or otherwise restricted securities. Morgan Stanley Investment Management Inc. (the U.S. Adviser or MS Investment Management) provides investment advisory services to the Fund. MFC Asset Management Public Company Limited (the Thai Adviser) provides investment advisory services to the Fund. The Fund invests in the Institutional Class of the Morgan Stanley Institutional Liquidity Funds- Money Market Portfolio (the Liquidity Funds), an open-end management investment company managed by the Adviser.
If you are investing on the local exchange then:
Banpu, PTT and KBANK look like bargains as Thailand’s stock market falls from political problems.
Banpu Public Company Limited (Banpu) is a Thailand-based company engaged in coal mining and power businesses. The Company has operations in Thailand and overseas, including Indonesia and the People’s Republic of China. Banpu supplies coal through its mines in the Lampang and Payao Provinces and via imported coal from Indonesia. The Company’s current operations in Indonesia are located in Jorong, Indominco, Kitadin, Trubaindo and Bharinto. In China, Banpu has mining projects in Daning, Hebi and Gaohe. As of December 31, 2009, the Company has for subsidiaries, namely Banpu Minerals Co., Ltd., Banpu Power Co., Ltd., BP Overseas Development Co., Ltd. and Banpu Power International Co., Ltd. On April 6, 2009 and June 22, 2009, the Company incorporated Banpu Australia Co. Pty Ltd. and Banpu Power Development Co., Ltd., respectively.
PTT Public Company Limited is a Thailand-based company engaged in the in upstream petroleum, downstream petroleum, coal business and other related businesses. Its business activities include the exploration for, the development and production of, natural gas, condensate and crude oil through subsidiaries; the procurement, transmission, processing, marketing and distribution of natural gas and gas products; the marketing of refined products through various distribution channels including commercial, retail, reseller and international markets, and the import and export of crude oil, condensate, petroleum feedstock and petrochemical products. As of December 31, 2009, the Company was operating in 24 countries, as well as it has 17 subsidiaries.
KASIKORNBANK PUBLIC COMPANY LIMITED is a commercial bank in Thailand. It provides corporate solutions, including K-Cash management solutions, credit, bancassurance, corporate finance and investments, international trade, supply chain financing, foreign exchange and derivatives and securities services. The small and medium-sized enterprise (SME) solutions cover K-Import service solutions, K-Global money transfer, K-Export Service Solutions and K-International trade finance solutions. The Bank operates 782 branches across the country, comprising 273 Bangkok Metropolitan branches and 509 upcountry branches. The Bank has seven overseas offices, including the Los Angeles International Branch, Hong Kong Branch, Cayman Islands Branch, Shenzhen Branch and the Representative Offices in Beijing, Shanghai and Kunming.
Around ASEAN Yesterday
Thai stocks gained 0.7 percent on Wednesday as a crackdown on anti-government demonstrators boosted hopes of an end to nine weeks of protests, prompting local investors to buy beaten big-cap energy shares and banks. Although foreign investors were net sellers. Elsewhere in Southeast Asia, markets closed lower on worries about moves by authorities in the euro area and the United States towards tighter financial regulation.
The prime minister imposed a curfew and the stock exchange said it would close for the rest of the week. Thailand's main index .SETI ended 0.7 higher, reversing earlier falls. Siam Commercial Bank SCB led the gains by rising 1.54 percent but is down 14 percent since hitting a March high. Kasikornbank KBAN rose 0.86 percent and is now down more than 14 percent since an early April high. Top energy firm PTT PCL PTT increased 0.8 percent and has dropped 12 percent since hitting an early April high.
Although the Thai index gained, foreign investors sold a net 4.7 billion baht of stocks on Wednesday.
Singapore's stock index closed at its lowest level since early March.
Malaysia's main index finished at its weakest level since mid March.
The Philippines dropped 1.3 percent, Jakarta fell 3.7 percent.
Vietnam .VNI dropped 2.6 percent.
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