Land & Houses Pcl, Thailand’s biggest developer of residential properties by market value, gained the most in a month in Bangkok trading after announcing the sale of its stake in a hospital operator.
Land & Houses jumped as much as 5.6 percent to 5.65 baht, the biggest intraday increase since Feb. 17, before trading at 5.55 baht as of the 12:30 p.m. lunch break. The stock was the fourth-best performer in the benchmark SET50 Index, which gained 1 percent.
The developer sold its 25 percent stake in Bangkok Chain Hospital Pcl (KH) for 3.5 billion baht ($115 million), the company said in a regulatory filing on March 18. Land & Houses divested the 415.6 million shares in the hospital operator to Bumrungrad Hospital Pcl (BH) at 8.50 baht each, it said.
The share sale is “strongly positive” by strengthening Land & Houses’ financial position, Narumon Ekasamut, a Bangkok- based analyst at Bualuang Securities Pcl, wrote in a note to clients today. Land & Houses will probably book a gain of 1.9 billion baht in the first quarter from the sale, she said.
Narumon upgraded her rating on Land & Houses’ stock to “trading buy” from “hold”, citing the divestment of its stake in Bangkok Chain.
Bangkok Chain jumped as much as 7.7 percent to 7.70 baht before trading at 7.30 baht, set for the highest close since it listed in 2004. Bumrungrad, the nation’s second-largest publicly traded hospital operator, climbed as much as 2.8 percent.
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