Thai listed companies reported first-half profits of 344 billion baht, down by 13.6% year-on-year as a result of rising costs, says the Stock Exchange of Thailand.

Sales, however, rose by 13.4% in the first half from the same period last year. The results represent first-half figures from 447 listed companies or 93.7% of the companies on the bourse. SET president Charamporn Jotikasthira said performance declines in the energy, steel and agribusiness sectors were the main factors behind the decline in net earnings, as lower global commodities prices resulted in stock losses and write-downs in inventory values. Insurance firms also faced claims as a result of last year’s floods.

“Excluding companies hit by the slump in commodities prices, year-on-year net profits of listed companies rose by 32% in the second quarter and 8.8% in the first half,” he said.

Total sales of the 447 listed firms rose by 13.4% to 5.06 trillion baht in the first half of the year. The top companies in profits for the period were PTT Plc, PTT Exploration and Production (PTTEP), Siam Commercial Bank (SCB), Kasikornbank (KBANK) and Advanced Info Service (ADVANC).

Second-quarter profits for the group numbered 130 billion baht, down by 24% year-on-year.

Phatra Securities’ managing director, Ian Gisbourne, said he expected equities earnings growth would be 14% for both this year and next.

He warned of high risk exposure around the globe, but this could be an opportunity for investors in some sectors.

Rising oil prices will drive earnings up, but risk will be priced into the stocks, Mr Gisbourne added.

Supavud Saicheua, Phatra’s managing director, cut his projection for Thai GDP this year to 5.3% from 5.7% but predicted the Thai shares market will likely grow a further 10% to 1,350 points this year.

Bangkok Post online classifieds

Try buying selling goods and properties 24/7 in our classifieds which has high purchasing power local expatriate audience from within Thailand and around the world.