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STOCKS NEWS THAILAND-CIMB Thai falls back after Bank of Ayudhya buy denial

Shares in CIMB Thai Bank Pcl retreated from anear 1-1/2 year high after the bank denied a newspaper reportabout a plan by its parent, CIMB Group Holdings Bhd ,to buy a stake in Bank of Ayudhya.

CIMB Thai Bank shares were down 5.7 percent at 2.64 baht,after Monday's 16.7 percent surge to 2.8 baht, the highest sinceApril 2011, triggered by a newspaper report that quoted a marketsource as saying that Malaysian bank CIMB had conducted duediligence on a plan to acquire about 25 percent stake in Bank ofAyudhya from General Electric Co .

"There have been no material developments at the Bank," CIMBThai said in a statement to the stock exchange.

For the company statement, click 1043 (0343 GMT)

(Reporting by Viparat Jantraprap in Bangkok;viparat.jantraprapaweth@thomsonreuters.com); Editing by JijoJacob

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09:13 STOCKS NEWS THAILAND-Maybank Kim Eng raises Krung Thaibank price target

Maybank Kim Eng Securities raised its price target on staterun Krung Thai Bank Pcl KTB.BK to 25 baht from 19 baht,reflecting strong loan growth outlook boosted by governmentspending.

On Monday, Krung Thai Bank shares closed down 0.5 percent at18.6 baht. It was up 32.7 percent in 2012 versus a 36.6 percentgain of the banking subindex .SETB.

The broker raised loan growth forecasts for 2012-2014 to12.3 percent, 14.1 percent and 14.5 percent, respectively,outperforming banking sector average of 10 percent while netprofit was expected to rise by a 32.6 percent compound annualgrowth rate for 2012-2014, it said in a report.

"After the Lehman crisis in 2008-09, Thai loan demandrecovered strongly. In 2010-11, the corporate loan demand wasfor private investment and M&A deals. This year, 2012, is theyear of retail banking from government stimulus policies," itsaid.

"From 2013F onward, we believe the government seven yearmega projects of 2.27 trillion baht will create the next loandemand wave, and we expect KTB to gain the most," it said.

0903 (0203 GMT) (Reporting by Viparat Jantraprap in Bangkok;viparat.jantraprapaweth@thomsonreuters.com) (Editing by G.Ram Mohan)

Keywords: MARKETS THAILAND STOCKSNEWS/CIMBTHAI