#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.
Finance stocks soar as central bank reduces loan interest ceiling
EconAug 27. 2020
By The Nation
Finance stocks rose sharply on Wednesday (August 26) when at least two brokerage firms released information relieving investors’ uncertainty over the Bank of Thailand (BOT)’s reduction of the loan interest ceiling, experts said.
The price of Ratchthani Leasing (Thani) rose by Bt0.42 or 13.38 per cent to Bt3.56 per share, Srisawad Corporation (Sawad) rose by Bt4.25 or 9.77 per cent to Bt47.75 per share, and Muangthai Capital (MTC) rose by Bt1.75 or 3.59 per cent to Bt50.50 per share.
Kitpon Praipaisarnkit, a strategist at UOB Kay Hian Securities (Thailand), said finance stocks rose as at least two brokerage firms spoke up about the reduction of the loan interest ceiling. “These shares had dropped sharply previously and rose again in the short term because there were no negative sentiments in this group,” he said.
He said investors should hold on to finance shares because these companies will set up more allowances for doubtful debts once the BOT’s measure giving borrowers a holiday from debt repayment expires, resulting in an increase in non-performing loans (NPLs) and a decline in the second-half performance.
“The reduction in the loan interest ceiling has also caused a decline in return on equity [ROE], stopping investors from trading these shares at a high price,” he said. “Therefore, now is the chance to the sell these shares to make profits.”
Wijit Arayapisit, a strategist at Maybank Kim Eng Securities (Thailand), said finance shares rose because investors had picked them up when they dropped sharply, thinking that the Thai stock index could rise no further.
“Investors also decided to buy these shares because they are still performing well, though their profits have not been growing much as people still need to borrow from non-banking financial institutions,” he said. “However, we still advise selling these shares.”
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