Ebeling Heffernan Issue Strong Buy on Thailand Stocks

The Thai stock market has finished lower again today making it three straight sessionsof declines. The Stock Exchange of Thailand SET is testing support at the 720 point level and today closed under the mark 718.77 points. Ebeling Heffernan Top Thai Stocks to own are:

PTT closed at 237.00 baht, up by 2.00 or 0.85 per cent.

PTT Public Company Limited is a fully integrated gas company engaged in the marketing and trading of various crude oil and refined petroleum products, as well as investing in the petrochemical and refining industries. Its business activities include the exploration for, the development and production of, natural gas, condensate and crude oil through subsidiaries; the procurement, transmission, processing, marketing and distribution of natural gas and gas products; the marketing of refined products through various distribution channels including commercial, retail, reseller and international markets, and the import and export of crude oil, condensate, petroleum feedstock and petrochemical products. As of June 28, 2007, it acquired retail petroleum business from ConocoPhillips Company, including 146 JET-branded service stations and Jiffy-branded convenience stores. On February 7, 2008, it announced the establishment of PTT Green Energy Pte., Ltd. and acquisition of PT Mitra Aneka Rezeki.

CPF closed at 11.50 baht, up by 0.20 or 1.77 per cent.

Charoen Pokphand Foods Public Company Limited is a Thailand-based manufacturing company. The Company is engaged in the production and sales of food products. Its operations cover the entire cycle of the agro-industrial sector, ranging from sourcing raw materials for animal feed production, manufacturing animal feeds, breeding animals, farming animals for commercial purposes, processing meat and manufacturing processed food products, to distributing products to domestic and international consumers. Its operation is divided into two main business lines, the livestock business and the aquaculture business. The Company’s products are comprised of three main categories, animal feeds, animal breeders and meat and food products. Charoen Pokphand Foods has a global network with 58 subsidiaries. As of March 20, 2007, the Company set up CPF Philippines Corporation, its wholly owned subsidiary engaged in the operations of shrimp hatchery in Philippines.

BANPU closed at 574.00 baht, up by 4.00 or 0.70 per cent.

Banpu Public Company Limited is a Thailand-based company that conducts coal mining operations and power generation. The Company’s coal mining projects are located in northern Thailand, Indonesia and China. Banpu is a private thermal coal supplier in the country through its mines in the Lampang and Payao Provinces and via imported coal from Indonesia. Its products are sold in both domestic and international markets. The Company’s current operations in Indonesia are located in Jorong, Indominco, Kitadin, Trubaindo and Bharinto. In China, Banpu has mining projects in Daning, Hebi and Gaohe. Its power business is comprised of 50%-owned BLCP Power Limited, a coal-fired power plant operator in Thailand, and a joint venture gas-fired plant in Ratchaburi. It also has three power plants in China, two being fully owned. Headquartered in Bangkok, Banpu has a number of subsidiaries and associated companies in Thailand, China and Singapore.

UNIQ remained at 5.90 baht.

Unique Engineering and Construction Public Company Limited is a Thailand-based company engaged in the provision of engineering and construction services. The Company’s services include civil engineering, the operation of infrastructure projects, including bridges, highways, tunnels, drainage system construction, flood protection and other civil works. It provides both general construction and turnkey design services. The Company is also involved in the development of real estates, such as single-detached houses and townhouses. The Company has one subsidiary under the name of Unique Real Estate and Development Co., Ltd. As of December 12, 2008, the Company signs a construction contract of commuter train project in Bangsur Taling Chan section.

Other Positive Factors

Aberdeen Asset Management Plc, Scotland’s largest money manager, said it will maintain investments in Thailand on the expectation political disputes will be resolved peacefully, aided by the monarchy.

“Several” Thai companies remain attractive because they have the ability to survive “when times are bad,” Mike Turner, head of global strategy and asset allocation at Aberdeen, which oversees about $249 billion of assets globally, told a briefing in Bangkok today. He declined to name the companies or say whether Aberdeen has bought Thai stocks recently.

Overseas investors have bought Thai stocks over the past two weeks after the Supreme Court last month authorized the government to seize 46.4 billion baht ($1.4 billion) of assets owned by Thaksin and his family. Yesterday, foreigners were net purchasers of Thai stocks for a 10th day, buying 2.98 billion baht of the equities, according to stock exchange data. That was the longest buying streak since September.

The latest figures show that only 43 billion baht or 26% of the first stimulus package worth 160 billion baht has been disbursed so far. For the second package worth 150 billion, about 82 billion has been allocated and 42 billion baht disbursed.

The Thai Exchange already trades at very low valuations and the increased discount on offer from the political issues is too good to miss.

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