Sentiment arising from the dispute effectively landed the composite Stock Exchange of Thailand Index in negative territory for most of the day yesterday. However, buying support hit the market in the last half hour, eventually pushing the index up 0.85 points on the day to close at 985.63.

Kavee Chukitkasem, head of research at Kasikorn Securities, said the border problem would affect SET sentiment a little, but it would not dent Thai gross domestic product or exports as trade between the two countries was relatively small.

He said only a few Thai listed companies were invested in Cambodia, and that the revenue generated in that country only accounted for 1 per cent of their overall income.

The exception is Khon Kaen Sugar Industry, whose Cambodian revenue proportion is higher. However, executives of the company yesterday insisted that the facilities in Cambodia were operating as normal and that they were located far from the disputed area.

Siripun Sutharoj, head of equities at ING Funds, said the border dispute would have an impact on investment sentiment, but would not affect the Kingdom’s economy or the Cambodian operations of listed companies.

He said the SET Index is expected to move in a range of 950 to 1,000 points in the near term, with good blue-chip stocks remaining those in the energy and petrochemical sectors.

Kim Eng Securities’ research cited Samart, Thaicom, Khon Kaen Sugar Industry, Siam Cement Group, Bangkok Dusit Medical Services, Tipco Asphalt, Diamond Building Products and Siam City Cement as listed companies with businesses in Cambodia.

There will be short-term speculation as result of the border problem, but it will not affect the operations of these companies, the brokerage said.

Pakorn Peetathawatchai, chief marketing officer of the SET, said the bourse had discussed the matter with the Finance Ministry and the Securities and Exchange Commission. They concluded that the stock market was facing uncertainty as a result of a number of factors, and that investors should trade cautiously and keep a close watch on the situation.

An analyst at Capital Nomura Securities (CNS) said the export of cement, sugar and petroleum to Cambodia would be affected by the dispute.

The securities house said exports of cement to the neighbouring country were US$66 million (Bt2 billion) last year, representing 14.73 per cent of overall cement exports. Sugar exports came in at $116 million or 8.72 per cent of overseas sugar sales, while petroleum exports were $118 million, or 3.12 per cent of overseas crude sales.

CNS said at least five listed companies would be affected by the dispute: Siam Cement Group, Khon Kaen Sugar Industry, Bangkok Dusit Medical Services, Samart and Thaicom.

However, the brokerage forecast the problem would not affect these firms greatly, due to the low percentage of revenue accounted for by their Cambodian operations.

CNS expects the situation will eat into Siam Cement’s net profit by no more 1 per cent. It also said the sugar plant in Cambodia generates 1 per cent of Khon Kaen Sugar Industry’s profit, while Bangkok Dusit’s hospital there is expected to contribute no more than 1 per cent of the group’s profit.

Thaicom, meanwhile, provides cellular operations in Cambodia, which generate 10 per cent of the company’s overall revenue, said CNS.

Thaicom yesterday said its Mfone cellular operator in Cambodia was operating as usual. Of the roughly 600 employees, only a few are Thais.

Samart said its businesses in Cambodia were continuing to operate normally, but it was keeping a close watch on the situation, which it hoped would return to normal soon.

Samart’s businesses in Cambodia include air traffic control operator Cambodia Air Traffic Services and Kampot Power Plant.

Charoen Pokphand Foods, the agro-business conglomerate that has invested in Cambodia, said yesterday that the gun battles along the border had not hit its business as the company’s feed-meal plant is located in a suburb of Phnom Penh.

“The plant is operating as usual, as it is far from the conflict area,” said Adirek Sripratak, president and chief executive of the company.