IN Brief

BBL, SCB cut rates

BANKING :Bangkok Bank and Siam Commercial Bank yesterday announced interest rate reductions, following a move earlier this week by Krung Thai Bank.

Bangkok Bank cut its key lending rates by a quarter-point, with the minimum lending rate cut to 7.25%, minimum overdraft rate to 7.5% and minimum retail rate to 7.75%. Fixed deposit rates were cut by 0.5 percentage points to 2.75% and 3% depending on the term and amount.

Siam Commercial Bank also cut its key rates by a quarter-point. Effective Monday, the bank will quote an MLR of 7.25%, MOR of 7.5% and MRR of 7.75%. Fixed deposits of three-, six- and 12-month terms for less than three million baht will pay 2.75%, down from 3.25%.

IRPC paying dividend

PETROCHEMICALS :IRPC Plc, formerly Thai Petrochemical Industry Plc, will spend 2.34 billion baht to make its first dividend payment in seven years, at 12 satang per share.

The company's shareholders approved the dividend payment for 2006 performance yesterday. The payment amounts to 34% of the company's net profit after tax of 6.82 billion baht in 2006.

Shareholders also approved a plan by the company to set aside 400 million baht as reserved capital.

As well, the company said its planned issue of debentures worth US$400 million for refinancing was expected to be completed before August.

IRPC shares closed yesterday on the SET at 6.05 baht, unchanged, in trade worth 55.6 million baht.

PTT share 'not a threat'

PETROLEUM :The increased market share of PTT Plc in the oil retail market after it acquires 147 Jet service stations should not be considered a threat as long as the company does not take advantage of consumers, according to Energy Minister Piyasvasti Amranand.

The acquisition announced on Thursday would lift the majority state-owned oil company's share rises to 39% from 34% of the refined oil trade of 42 billion litres per year.

The current fuel marketing margin of one baht per litre is higher than it has been in recent months so oil traders have no reason to raise prices, he added.

In addition, competition is heavy because supply from local refineries such as IRPC Plc and Thai Oil Plc exceeds domestic demand.

About 20% of overall refinery capacity is now exported.

20% growth for Visa

CREDIT :Visa International reported 20.6 million cards outstanding in Thailand at the end of 2006, up 20% from the previous year. Credit cards totalled 6.7 million, up 17.3%, with debit cards expanding 21% to 13.9 million.

Spending through Visa cards, including cash withdrawals through ATMs, rose 32% to 1.547 trillion baht. Spending at local and overseas retailers totalled 357 billion baht, up 23%.

Somboon Krobteeranon, country manager for Visa International, said growth well outstripped the 10% average for the card industry, though Visa's figure was down from the 25% gain posted in 2005.

Visa International will soon begin a marketing campaign for the 2008 Beijing Olympics, featuring Jackie Chan in commercials highlighting Visa's status as an official Olympic sponsor.

'W' coming to Samui

HOTELS :Istithmar Hotels and Amburaya Resorts expects to open the W Hotel and Residences on Koh Samui in late 2008.

The 70-villa resort is the first Southeast Asian property for the W Retreat brand owned by Starwood Hotels. It will also include 15 luxury villas for sale.

Istithmar Hotels, owned by the Dubai government, has an investment portfolio worth $3 billion worldwide, including a 24.99% stake in the local developer Raimon Land. Amburaya Properties is a Thai-based developer with properties in Bangkok, Pattaya, Samui and India.

14-day bills yield 3.8%

DEBT MARKET :The Bank of Thailand yesterday auctioned 35 billion baht worth of 14-day bills for a weighted average accepted yield of 3.80082%. Accepted bid yields ranged from 3.785% to 3.81%, with the bid coverage ratio 1.34 times.

Reserves at $70.6bn

FINANCIAL DATA :International reserves totalled $70.6 billion as of April 12, unchanged from the week before, the Bank of Thailand said yesterday.

The net forward position was $9 billion as of April 12, compared with $8.9 billion the week before. Net claims on government totalled 105.9 billion baht, compared with 114.2 billion. Net claims on financial institutions were -1.091 trillion baht, compared with -1.119 trillion. Reserve money was 849.3 billion baht, compared with 829.8 billion the week before.

Bangkok Post

Last Updated : Saturday April 21, 2007