Singapore shares scaled new a five-year high, with Thai Beverage jumping to a record after an upbeat report on opportunities in Myanmar for the company.
The Straits Times Index gained 0.4% to 3,458.5 in a broad-based rally. The index is up nearly 9% so far this year, but has underperformed most Southeast Asian markets.
DBS Vickers said there was little room for upside on earnings potential in Singapore. “The hunt for yield, defensive and stable names should continue as global growth remains weak, central banks stay accommodative and inflation is still tame.”
Thai Beverage was the biggest gainer and rose as much as 5.2% to a record $0.71. Highlighting Myanmar’s strong potential in the beer market, Standard Chartered issued a bullish report and said Thai Beverage was an “excellent proxy” for the opportunities in Myanmar.
“The country’s extended isolation has led to a shortage of basic consumer items - and a thirst for beer. Myanmar could generate 47% of Thai Beverage’s beer volume growth in 2013 to 2017,” it said.
“Thai Bev has a 29% stake in F&N, which controls Myanmar Brewery. We think Thai Bev is likely to acquire F&N’s F&B business in a restructuring.”
Thai billionaire Charoen Sirivadhanabhakdi, through Thai Beverage and TCC Assets, is F&N’s biggest shareholder.
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