BAM Capital Market

FSS International Investment Advisory (FSSIA) expected negative sentiment on Bangkok Commercial Asset Management Public Company Limited (SET: BAM) if the deal between JMT Network Services and Kasikornbank to establish a joint venture company for asset management business is complete. JMT Network Services Public Company Limited (SET: JMT) stated that the company is in the process of discussing with partners for the asset management business, following the report from “Kaohoon Turakij” newspaper that the company is expected to establish a joint venture with Kasikornbank Public Company (SET: KBANK) to operate the business. It is a win-win situation for JMT and KBANK from potential alliance, wrote FSSIA in a note, but saying that this joint venture, if done, could create negative sentiment to BAM, as a leading asset management company (AMC) in Thailand, due to the concern on potential lower NPLs supply. Mr. Bundit Anantamongkol, Chief Executive Officer of BAM, stated in March this year that the company is in talks with the bank to establish a joint venture for asset management. However, there has yet to be clarity on the matter up to this date. FSSIA stated further that Chayo Group Public Company Limited (SET: CHAYO) would have a neutral impact from this deal due to its significantly smaller size than BAM as the lower potential NPLs supply should not be a key concern for the company.