Siam Cement gains on flood demand, Thailand

Siam Cement gains on flood demand, Thailand
Published: 11 October 2011

Siam Cement Pcl (SCC) paced gains in shares of Thai construction-material producers on speculation demand will surge after the nation’s worst floods in more than half a century.

Bloomberg reports that Siam Cement, Thailand’s largest producer, climbed 5.5 per cent to THB290 at 11:42 a.m. local time, set for the highest close since September 22. Siam City Cement Pcl (SCCC), the second- biggest maker, rose 5.6 per cent to THB226.

“Investors are looking to buy shares of companies that will benefit from a jump in demand in the aftermath of the flooding,” Sasikorn Charoensuwan, head of research at Phillip Securities (Thailand) Pcl in Bangkok, said. “Home-improvement and building materials will be in great need as the damage from flooding has been quite severe.”

At least 269 people have been killed and 2.4 million displaced as a result of heavy monsoon rains that have deluged the country since July 25, the Department of Disaster Prevention and Mitigation said today.