Sign up | Log in



Home  >>   Daily News  >>   Thailand News  >>   Economy  >>   Floods to impact Thai corporate earnings
NEWS UPDATES Asean Affairs     18 October  2011

Floods to impact Thai corporate earnings

The floods in Thailand and the slowing global economy will likely trim earnings growth of Thai-listed companies to as low as 7 percent in 2012,a Thai securities firm  and economists say.

Also, economists expect gross domestic product (GDP) growth this year of 3 percent, down from an earlier 4 percent forecast.
Kim Eng Securities sees the SET index dropping to as low as 820 this year. Its recommended portfolio is 65-70 percent in cash, with 30 percent divided into short-term return trading and long-term return stocks.

Chaiyachoke Suwisuttangkul, Kim Eng's economist, said the SET index has been rebounding in anticipation of positive results from the euro zone's leaders on Oct 23.

The SET index gained 15.82 points, or 1.66 percent, yesterday to close at 971.63 in trade worth 25.20 billion baht.
"However, sentiment is dominating the market direction right now, and any wrong message will send the index diving immediately," Mr Chaiyachoke said.

He noted the market's extreme volatility, with downside risk including local floods that will trim GDP growth over the next two or three quarters.

While the government expects a hit to the 2011 GDP of 1.0 percent to 1.7 percent, Kim Eng is less sanguine and puts the damage at higher than 200 billion baht, with an impact on listed-company earnings at least two quarters ahead.

Mr. Chaiyachoke said corporate tax reform would ease the burden for listed firms, but leading sectors such as energy and petrochemicals would still show a decline in the third quarter.

The banking sector, despite healthy third-quarter growth, will feel a pinch from small business, corporate loans and hire purchase as clients delay payment or see growth contract in the short term.

The flooding is still hard to manage and the global economy remains uncertain, with euro zone public debt unresolved and US unemployment stuck above 9 percent.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    18  October  2011 Subsribe Now !
• Asia-Pacific countries meet on trade deal Subcribe: Asean Affairs Global Magazine
 Austrian firm pushes Indo hydropower Asean Affairs Premium

 Indonesia welcomes media investment

Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

Malaysian construction industry needs dynamism
Philippines overseas remittances increase
 Floods to impact Thai corporate earnings
 Tsingtao to open in Thailand

 Business confidence up in Vietnam


Asean Analysis              18  October  2011

Advertise Your Brand
• Japan may hold key to TPP trade deal Sponsor Our Events

Asean Stock Watch      18  October  2011

• Asean Stock Watch-October 18 p

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2021 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand