LTF tax privileges face uncertain future

The LTF investment scheme begun in 2002 by Thaksin which has essentially helped to bring more local funds into the market in Thailand.

“LTFs are on the front burner when we talk with the Revenue Department. The association must make the department conform to the same view. Many people think such funds only benefit the rich, but that’s not true as more middle-income earners have also showed interest in putting money in these funds after they learn more about their privileges,” she said.

Source: Bangkok Post

The impact of this has been positive because increased the increased investment flow has led 1) increased liquidity within the market 2) The huge valuation discounts that were incredibly evident pre ’07 have now disappeared which in turn allows companies to raise capital at fairer valuations 3) The local Investment industry in Thailand has grown remarkably, with assets under managment at all the major firms hitting new highs year after year.

But Local institutions are still a small part of the overall value traded on the SET, retail investors still represent the largest @ 50-60%, followed by foreign investors @ 15-25% and the remainder with local institutions and prop funds. So there is still a long way to go for the professional investment industry to grow here in Thailand, to remove this LTF tax privelege will result in AUM’s no longer receiving additional funds for which to invest and thereby halting any growth in the capital markets in Thailand.

Let’s just hope they aren’t so silly.

Stocks in the news (Bay, bbl, cpnrf, prin, samart, scc, thai, wha) 27.03.14

BAY

BAY’s assets currently at Bt1tn. It expects loan growth of 9% YoY in 2014, made up of 40% big clients, 38% retail clients and 22% SME clients. (Khao Hoon, 27/03/14)

BBL

BBL expects loan growth of 5-6% YoY in 2014, if the Thai economy expands 3% YoY, assuming there is a working government. (Khao Hoon, 27/03/14)

CPNRF

CPNRF increases capital with total units offered for subscription of 576,150,000, priced at Bt14.8-15.2 per unit and subscription ratio of 0.3521 per 1 existing unit, on 1-4 April 2014. (SET, 27/03/14) Continue reading Stocks in the news (Bay, bbl, cpnrf, prin, samart, scc, thai, wha) 27.03.14

Stocks in the news (bcp, cpn, dsgt, ofm, spali, tmb, trc, trueif) 26.03.14

BCP

Bangchak’s solar sprint – The mostly state-owned oil refiner Bangchak Petroleum Plc says its third phase solar project in the Northeast is ready to feed power to the national grid one month ahead of schedule, signaling higher future revenue than expected. (Bangkok Post, 26/03/14)

Comment: The only sunny thing in the entire energy sector

CPN

CPN keeps income growth goal at 15% – Central Pattana (CPN), Thailand’s largest shopping mall developer, is maintaining a 15% revenue growth target this year, banking on the launches of two stores and rent rises amid the faltering economy. The company will commercially open Central Festival Samui on Friday and Central Plaza Salaya in the third quarter, said Wallaya Chirathivat, senior executive vice president. (Bangkok Post, 26/03/14)

DSGT

DSGT aiming at double-digit growth in 2014 from the launch of a new product. It is preparing to invest Bt800mn in expanding capacity and will look to markets on overseas. (Khao Hoon, 26/03/14)

Comment: #1 in adult diapers, #3 in baby diapers, stop giggling, this company has been on a roll for the past 8 years Continue reading Stocks in the news (bcp, cpn, dsgt, ofm, spali, tmb, trc, trueif) 26.03.14