Although the country's political turmoil has not yet had either obvious or adverse impacts on Thailand's business community, it is claimed to be the main culprit for the stalling of at least 13 company debuts on the stock market.

Plans by the 13 companies for initial public offerings (IPOs) have been approved by the Securities and Exchange Commission, but surprisingly none of them has fixed a date for their listing. Sitthichai Mahakun, deputy managing director of Kim Eng Securities (Thailand), which is financial advisor to Bangkok Metro Plc and Rock Garden Plc for their  IPOs, said the subscription period for the two firms has not yet been set because the company is still assessing the political situation.

Ayudhya Securities, the lead underwriter for the Thai Optical Group, which has set March 13 and 14 as the dates for its IPO, said yesterday it is possible the listing will be postponed if political tension continues.

"The political situation is paramount," the financial advisor said.

A source in investment banking circles said the disappointing debut of G Steel Plc and City Steel Plc has also sent a psychological shock to companies soon to be listed.

The firms were the first two companies listed on the stock market this year.

G-Steel, Thailand's leading hot-rolled coil maker, failed to offer a return to shareholders on the stock's first day of trading as it fell 16.87 per cent below its IPO price to Bt1.60 each. On its debut, City Steel's stock slumped 2.04 per cent below its IPO price to Bt2.94 per share.

SET president Kittiratt Na Ranong rushed to calm jittery investors yesterday, saying that shares in the stock market are still performing well despite anxiety over the political turmoil. His remarks implied that the political situation has no impact on the proposed IPOs.

Meanwhile, Credit Suisse First Boston (CSFB) said that it continues to be overweight in the Thai stock market despite the political woes because of improvements in the operating margins of Thai corporations and positive earnings revisions.

"On a 12-month view, we continue to be overweight in domestic stocks rather than global cyclicals. We highlight four themes: market-share gainers, balance sheet leverage plays, value play and asset play. Key catalysts for the SET are likely in the second half," the broker said.

CSFB said the stock market would probably rally when the current administration is replaced by an interim government.

SET chairman Vijit Supinit said yesterday that listed companies are expected to generate up to 20 per cent earnings growth this year and political tension is unlikely to affect development plans for the capital market.

Piyarat Setthasiriphaiboon

The Nation