Analysts wary of border standoff

Analysts recommend avoiding Thai stocks that have significant exposure to Cambodia and suggest investors monitor the border situation as it could escalate and subsequently affect the economy.

- NUNTAWUN POLKUAMDEE

If the conflict can be contained quickly, the investment impact is likely to be limited, with technical support for the Stock Exchange of Thailand (SET) index expected at 1,190 points, they said.

“So far, the effect on Thai listed companies’ earnings is considered modest,” Bualuang Securities (BLS) said in a research note.

Companies with more than 5% of their revenue from Cambodia were mainly energy drink producers, while those with 1-5% exposure include hospitals, energy firms and construction materials companies. Retailers and banks have an exposure of less than 1%, according to the brokerage.

Carabao Group (CBG) has more than 10% of revenue or profit derived from Cambodia, while Osotspa (OSP) and Siam City Cement (SCCC) have 5-10% exposure.

Stocks with 1-5% exposure include hospital groups, namely Bumrungrad Hospital (BH), Bangkok Dusit Medical Services (BDMS) and Bangkok Chain Hospital (BCH).