KBank predicts more volatility in financial market next year
The financial market in 2012 will be more volatile than this year because of the unclear picture of the global economy, especially in the euro zone, Kasikornbank predicts. However, if the United States and the European countries inject money to improve li
Thailand is one of those countries that should gain if the US and European countries ease their monetary policies, said Thiti Tantikulanun, head of KBank’s capital markets division. Such a measure would accelerate investment by large companies, and the bank expects total project-financing |and syndicated loans of local commercial banks to increase to Bt350 billion in 2012 from Bt333 billion this year.
Syndicated loans will play a very important role in driving the growth of Thailand’s offshore businesses, mostly financing energy projects, particularly renewable-energy, petrochemical and chemical products. Steel and telecommunications are also key industries requiring large investment, estimated at no less than Bt250 billion, Thiti said.
KBank plans to participate in financing as well as acting as a financial adviser to Bt80 billion in investments in renewable energy to ensure market share of 22 per cent.
Syndicated loans are more flexible than bonds, as borrowers can gradually withdraw loans from |creditors and can negotiate with banks to extend repayment periods. The bank expects corporate bond issues in the new year to have the same total value as this year, about Bt300 billion.
KBank plans to participate in corporate bond underwriting of Bt60 billion, and expects to maintain its rank of No 1 in bond trading in the secondary market with a market share of 15 per cent, with annualised transaction volume of Bt3.7 trillion of total bond-trading value of Bt25.4 trillion.
Thiti expects that the gloom in the global economy will cause the baht to appreciate against the US dollar, to Bt29.5-Bt33, in 2012.
