Spending up 7%

Today's Business News - Wednesday December 12, 2007

IN BRIEF

Spending up 7%

ADVERTISING / Advertising spending rose 7% year-on-year in November, the fifth straight monthly gain, helped by heavy spending from the local units of Unilever and Nestl? to spur consumer buying.

Spending rose to 8.25 billion baht last month from 7.71 billion baht a year earlier, according to Nielsen Media Research (Thailand).

Companies increased the promotion of skin-care products, cars, toothpaste and soft drinks, Nielsen said.

Unilever (Thai) Holdings increased its advertising spending by 0.7% to 256.7 million baht in November from a year earlier, making it the country's biggest advertiser, according to Nielsen data. Nestl? (Thai) Ltd. increased its spending by 38% to 118.9 million baht.

Procter & Gamble (Thailand) cut spending 3% to 166.4 million baht.

Advertising in newspapers rose 15.5% to 1.58 billion baht, while in-store advertising jumped 30% to 48 million baht, Nielsen said. Television advertising rose 9% to 4.71 billion baht, accounting for 57% of total spending. - BLOOMBERG

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IPO to raise B12.3bn

MINING / Banpu Plc, Thailand's biggest coal miner, will raise 3.16 trillion rupiah (12.35 billion baht) selling shares in its Indonesian unit amid record coal prices.

PT Indo Tambangraya Megah, 95% owned by Banpu, is selling 225.6 million shares at 14,000 rupiah (54.45 baht) apiece, Banpu said in a statement to the Stock Exchange of Thailand yesterday. The company had earlier indicated a price range of 11,000 to 15,000 rupiah. The IPO opened yesterday and runs until tomorrow.

Thermal coal prices for fuel shipped from Australia's Newcastle port, the Asian benchmark, reached a record in the week ended Dec 7, amid rising demand from Chinese utilities and export bottlenecks.

About 70% of Banpu's estimated 349 million tons of coal reserves are in Indonesia. Sales of 19.3 million tons last year from mines in the archipelago accounted for 77% of the company's total sales volume.

Shares of Banpu have doubled on the SET this year. They closed yesterday at 420 baht, down eight baht, in trade worth 768.1 million baht. - BLOOMBERG

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Jet Airways seeks hub

AVIATION / India's Jet Airways is seeking a hub for Southeast Asian and North Asian operations out of Bangkok, Kuala Lumpur or Singapore.

The decision will hinge on where the airline finds a suitable code-share and feed partner, executive vice-president Sudheer Raghavan said yesterday.

The carrier currently has 10 international routes and 44 domestic destinations in India, and is looking to expand international destinations to 15 by next month, and 19 by April.

The airline is seeking an arrangement similar to one it has at its European hub in Brussels, where it has links with Brussels Airlines for European and North American connections. - BLOOMBERG

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New Pranburi resort

PROPERTY / Supharat Resort has launched the 500-million-baht Pran-A-Luxe villa in Pranburi, Prachuap Khiri Khan to serve high-end Thai and foreign buyers, according to managing director Sumeth Sukapanpotharam.

The beachfront project will have 47 villas of one to three storeys each at prices starting from eight million baht a unit. The company said the development would suit buyers seeking a tranquil beach setting and convenient transport from Bangkok.

The company expects a good response from European buyers, especially Scandinavians, who already know the area. / Baht at 4-month high

CURRENCY / The baht rose to its highest level in more than four months on speculation that accelerating economic growth will increase demand for Thai assets.

The baht extended its 2007 gain to 6.3% in onshore trade as Finance Minister Chalongphob Sussangkarn said that economic growth may exceed 5% next year.

Exports in October increased by the most since December 2003 and overseas fund managers bought more Thai stocks than they sold in the five days through Dec 7, a second week of net purchases.

The baht rose as high as 33.6 per US dollar, the strongest since July 25, in onshore trade yesterday. Offshore, the baht advanced 0.3% to 30.26. - BLOOMBERG

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PR veteran passes away

COMMUNICATIONS / Norman Pajasalmi, the founder and managing partner of PR & Associates, passed away on Monday after a long illness. He was 48.

Mr Pajasalmi, the son of Esko and Anja Pajasalmi, was a leading figure in the Thai public relations sector, and was previously joint managing director of Presko Shandwick. His father Esko founded Presko, Thailand's first full-service PR consultancy, in the 1960s.

Mr Pajasami is survived by his mother Anja, his former wife Lan and their son Pol. A memorial service will be held on Friday at 3:30 pm at the Siam Society on Soi Asok.

Bangkok Post