Oil price hits bottom line
The Association of Securities Analysts is to revise downward this year's net profit of listed companies following the resurgence of record high fuel prices.
"We have to lower the earnings estimate of listed companies. Currently, I'm not so sure about the figure. The degree of the impact depends on which kind of business," said Kongkiat Opaswongkarn, the association's chairman and Asia Plus Securities' chief executive officer. The association predicted corporate earnings growth this year at 4.8 per cent. According to Stock Exchange of Thailand data, listed companies last year posted a cumulative earnings growth of 15 per cent to Bt537.39 billion, despite encountering the tsunami effect, the bird-flu epidemic, and higher oil prices during the year. Export industries will also be adversely affected due to the significant appreciation of the baht. The appreciation began after the floating of the Chinese yuan nearly a year ago and speculators poured money into many Asian countries. However, the baht's rise does not mean that the country is in a better position, as many of the region's currencies have also strengthened. Even amid the rising inflation triggered mainly by high oil prices, consumption momentum among consumers will continue as Thais have more savings than in the past, according to Kongkiat. Piyarat Setthasiriphaiboon The Nation
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