Thailand Weekly News

Week ended 27 January 2011

Cabinet approved four decrees including the controversial transfer of 1.14 trillion baht in FIDF liabilities to the central bank. As details are sketchy this prompted bank shares to fall on fears that the Bank of Thailand will need to raise income through higher deposit fees, new fees on B/Es and a clawback of corporate taxes which have just been reduced this year. PTT Exploration & Production announced a capital investment plan of $19.6 billion over the next 5 years and expects production to increase 22% to 324,000 boed by 2016; both are increases from earlier projections as the company looks for opportunities regionally and internationally. Kasikornbank expects loans to grow 9-11% this year which is slightly lower than the projected 12% in 2011. TISCO Financial Group's 2011 profits rose 13% year-on-year in line with our estimates amid narrower margins, lower brokerage income and a one-off tax charge in the fourth quarter. We hold the stocks.

We hold the companies in bold.