Floods pose risks, but gains could follow
Retail and construction-material stocks could face short-term risks due to this year's floods, according to stock analysts.
An analyst with DBS Vickers Securities (Thailand) expects short-term risks from the floods in the overall economy and some industries. These include commercial, construction-material and transport groups, and manufacturing plants.
A Thanachart Securities research note said the current floods could have an impact on short-term confidence for stocks and land sales. If the water retreats, there could be positive impacts on commercial, construction-material and contracting groups, the DBS Vickers analyst said.
Flood impacts need to be monitored for industrial estates in Bang Chan and Latkrabang.
Bang Chan Industrial Estate houses listed companies President Bakery (PB), Union Plastic (UP), Union Pioneer (UPF) and Halcyon Technology (HTECH). Latkrabang Industrial Estate has KCE Electronics (KCE), Electronics Industry (EIC), Berli Jucker, Goldfine Manufacturers (GFM), S&P Syndicate (SNP) and Simat Technologies (Simat).
An analyst with Finansia Syrus Securities expects limited impact from the current floods as the affected industrial estates are mostly in the Northeast and East. When the floods subside, Siam Cement, Diamond Building Products and Home Product Centre (HMPRO) could gain, he said.
