Bloomberg News

Rojana Shares Slide After Flooding Halts Plant Operations

October 10, 2011

(Adds analyst’s comment in fourth paragraph.)

Oct. 10 (Bloomberg) -- Shares of Rojana Industrial Park Pcl, a Thai developer of industrial land, dropped to a two-year low in Bangkok trading after flooding in Ayutthaya province forced the closure of its biggest manufacturing complex.

The shares slid 13 percent to 6.10 baht at 11:21 a.m. local time, heading for the lowest close since Aug. 3, 2009. The stock was the worst performer in the 485-member SET Index, which fell 1 percent.

Flooding has closed all plants at Rojana’s industrial park in Thailand’s Ayutthaya province, 67 kilometers (42 miles) north of Bangkok, the company said in regulatory filing today. The closure will affect revenue from services and utilities, the company said.

“The flooding has a significant impact on Rojana, as new sales and rentals will be hurt in the short term,” Noppadol Piriyawut, an analyst at Thanachart Securities Co. Ltd., wrote in a report today. “Its development cost will probably increase” following the flooding, the analyst said.

Nikon, Canon, Hitachi Metals Ltd. and Siam Cement Pcl are among companies with operations at the estate, according to Rojana’s website.

At least 269 people have been killed and 2.4 million displaced as a result of seasonal monsoon rains that have hit the country since July 25, the Department of Disaster Prevention and Mitigation said on its website today. About 30 of Thailand’s 77 provinces remain underwater, the agency said.

-- Editor: Matthew Oakley

To contact the reporter on this story: Anuchit Nguyen in Bangkok at anguyen@bloomberg.net.

To contact the editor responsible for this story: Shiyin Chen at schen37@bloomberg.net.


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