Siam Cement Pcl paced gains in shares of Thai construction-material producers on speculation demand will surge after the nation’s worst floods in more than half a century.
Siam Cement, the nation’s largest producer, climbed 5.5 percent to 290 baht at 11:42 a.m. local time, set for the highest close since Sept. 22. Siam City Cement Pcl, the second-biggest maker, rose 5.6 percent to 226 baht. Tipco Asphalt Pcl, the largest asphalt maker, surged 7.3 percent to 55.5 baht, set for the highest close since April 28.
“Investors are looking to buy shares of companies that will benefit from a jump in demand in the aftermath of the flooding,” Sasikorn Charoensuwan, head of research at Phillip Securities (Thailand) Pcl in Bangkok, said by phone today. “Home-improvement and building materials will be in great need as the damage from flooding has been quite severe.”
At least 269 people have been killed and 2.4 million displaced as a result of heavy monsoon rains that have deluged the country since July 25, the Department of Disaster Prevention and Mitigation said today.
Home Product Center Pcl, the country’s biggest home-improvement materials retailer, increased 3.4 percent to 9.25 baht, poised for a record close. Chonburi Concrete Product Pcl, a producer of concrete walls, blocks and products, advanced 4.5 percent to 2.34 baht.