10.23.2001
First Commercial allies with Polaris - Avoid

• Reports indicate First Commercial Bank has signed a confidential agreement with Polaris Securities (6011.TT) to absorb the latter into its financial holding company. Press also reports that the Ministry of Finance is pushing for the alliance. First Comm’l absorbed Taisec Securities (unlisted) on 16 Oct. this year. Larger than Taisec in terms of brokerage market share, Polaris (4.4% market share) is a leader in on-line trading. The tie-up will strengthen the securities arm of the bank. However, we believe more is needed for First Comm’l to improve its overall asset quality, which may not be achievable even with the help of AMCs.