Finansa, Thai Brokerages Climb on Cash, Valuation

Finansa Pcl (FNS) and other Thai stock brokerages rose in Bangkok trading as their cash holdings and recent share declines made them attractive to investors.

Finansa climbed 0.6 percent to 3 baht at the close, its highest close since Jan. 15. BFIT Securities Pcl, the No. 2 stock brokerage by trading volume, added 1.9 percent to 2.16 baht, bringing a four-day rally to 86 percent. The benchmark SET index was up 0.5 percent.

There will be “ more short-term speculation on shares of stock brokerages,” Touchcha Pattarasaengthai, an analyst at Trinity Securities Co., wrote in a report today, citing stocks with cash and those with share prices lower than book values.

Investors are focusing on cash holdings and stock valuations as the economic outlook dims amid the global credit crunch. Thailand’s exports fell the most in at least 17 years last month as the deepening slump worldwide crimped demand for Asian goods, the government said today.

Globlex Holding Management Pcl (GBX) surged 29 percent to 0.54 baht, the best performer in the 475-member benchmark index. United Securities Pcl (US) jumped 11 percent to 2.72 baht, the most since Dec. 29. UOB Kay Hian Securities (Thailand) Pcl (UOBKH) rose 14 percent to 3.34 baht.

Finansa trades at 0.17 times book value, according to Bloomberg’s data. It had cash of 645 million baht ($18 million) as of Sept. 30, according to its financial statements. BFIT Securities has a price-to-book ratio of 0.83 and Globlex trades at 0.46 its book value.

To contact the reporter on this story: Anuchit Nguyen in Bangkok at anguyen@bloomberg.net.

To contact the editor responsible for this story: Linus Chua at lchua@bloomberg.net.

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