BOT Maintains rate @ 2.75%

For the past few weeks the government has been “pressuring” the BOT to cut rates in the aim of preventing the Thai baht from getting any stronger. We’ve been against this thought as Thailand has so much liquidity flying around as it is and with the Government’s spending coming through next year any further rate cuts are unwarranted as GDP growth is fine, inflation is still there hovering just about 3% and we think any increase in liquidity could push things into a “bubble” state for the financial and property markets.

So well done BOT you’ve proven you have a spine!

The Bank of Thailand’s Monetary Policy Committee (MPC) has kept its benchmark interest rate unchanged at 2.75%.

The committee members on Wednesday afternoon voted six to one not to cut the policy interest rate because they believed the current rate was in line with the overall economic situation.

The MPC said the global economy was more stable and Thailand’s gross domestic product growth was higher than expected in the fourth quarter of 2012, while the inflation rate continued to increase because of fuel prices.

Source: Bangkok Post

Stocks in the news (amata, anan, ap, ratch, tisco) – 20.02.13

AMATA

AMATA to set up property fund this year — AMATA aims to set up a real estate property fund this year. It said sales have grown by 10-20% from last year’s 2,800 rai. It has also secured a backlog of land worth Bt7.6bn, which is expected to be recognized this year. The company will invest Bt2bn on infrastructure in its industrial estates. (Khao hoon, 20/02/13)

Comment: Welll…another one jumping on the property fund train, they don’t have that much rental income generating assets to facilitate a decent sized property fund at the moment, not sure what amata is planning to sell into it

ANAN

New condo on Sukhumvit 64 — ANAN is to launch the Bt4.6bn “Elio Condo” located on Sukhumvit 64, with starting unit price at Bt1.29mn. The company plans to launch 13 new projects with a total value of Bt24bn this year, to push sales up to its goal of Bt14.9bn. (Khao Hoon, 20/02/13)

Comment: Yawn…zzzzz….over priced…

AP

Asian Property’s upscale condo with a difference on Sukhumvit – Asian Property Development hopes to cash in on the limited availability of upscale condominiums on Bangkok’s Sukhumvit strip by introducing its first top-end tower, Galerie Rue de 39, worth Bt3.3bn. (The Nation, 20/02/13)

RATCH

RATCH allots B10bn for 2013 projects, investments – The SET-listed Ratchaburi Electricity Generating Holding Plc (RATCH), Thailand’s largest private power producer, has set aside Bt10bn this year to fund ongoing and new projects, both at home and abroad. (Bangkok Post, 20/02/13) Continue reading Stocks in the news (amata, anan, ap, ratch, tisco) – 20.02.13

Management Trades 11.03.13 to 15.03.13

Notable Transactions

Buy(s) – THB 165mn

  • BGH – Directors buy another thb 30 mn worth of shares, I’m still thinking 200+
  • BLA – Stock had fallen out of love for the past month, however the underlying business still seems to be growing strongly
  • SIRI – Same story as before…K. Srettha here is merely swapping shares from his private investment vehicle to be placed under his name

Sell(s) – THB 170 mn

  • BLAND – K. Anantttttttttt, oh no, oops different family member
  • MACO – A director takes profit here, now we’ve always liked MACO as a company but never had found its stock appealing even though it had always been trading @ 10x PE with a 6% ish yield, we never saw its potential to grow more than 10% p.a. However the rumour mill has it that VGI would acquire MACO.
  • SIRI – See above

130220 mgmt_trades