WEAK ECONOMIC SIGNALS HURT EQUITY SENTIMENT
RECAP: Gold rose on Friday as equity markets wobbled amid heightened fears of a global economic slowdown and increased expectations of additional US interest rate cuts, with investors awaited cues from US employment data.
The SET index moved sideways in a range of 1,605.13 and 1,645.06 points before closing at 1605.96, down 2.3% from the previous week, in turnover averaging 40.5 billion baht a day.
Retail investors were net buyers of 14.4 billion baht and brokerage firms bought 1.4 billion. Institutional investors were net sellers of 9.2 billion baht and foreign investors offloaded 6.6 billion worth of shares.
NEWSMAKERS: North Korea and the United States are holding working-level nuclear talks today, Pyongyang said, signalling the resumption of a dialogue process that has been effectively stalled since the collapse of the Trump-Kim summit in February.
British Prime Minister Boris Johnson met his senior ministers on Thursday before setting out on a delicate mission to persuade sceptical EU leaders to back his new Brexit plan. He insists that if the EU doesn’t like it, Britain will leave the bloc without a deal on Oct 31.
Saudi Arabia’s crown prince has warned that oil prices could rise to “unimaginably high numbers” if the world does not act to deter Iran.
Japan increased its value-added tax for the first time in five years, from 8% to 10%, bringing the long-delayed policy into effect despite concerns it may slow the economy temporarily.
The fashion retailer Forever 21 has filed for Chapter 11 bankruptcy protection in the US. It expects to close up to 350 stores worldwide, including as many as 178 stores in its home market.
Mastercard, Visa and other financial partners that were enlisted to help oversee the Facebook-backed cryptocurrency Libra are having second thoughts about participating as regulators push for more information about the project, according to a Wall Street Journal report.
Malaysia’s competition watchdog on Thursday threatened to fine Grab US$21 million for practices that allegedly reduce competition, the latest problem for the ride-hailing giant.
Foreign fund outflows continue from the Stock Exchange of Thailand, bringing net outflows to 7.5 billion baht as of Oct 2.
Baht speculation has been declining after recent measures taken to manage local currency movement and a policy rate cut, says the Bank of Thailand.
Consumer prices edged up 0.32% in September from a year earlier, the lowest headline inflation level since January, mainly due to declining energy prices.
The Joint Standing Committee on Commerce, Industry and Banking has downgraded Thailand’s GDP growth outlook for 2019 for a third time, to a range of 2.7% to 3%. It also predicts exports will contract by up to 2% amid the US-China trade war, Brexit woes and baht appreciation.
The Thai National Shippers Association has also trimmed its export forecast, predicting a contraction of 1.5%. Economic growth in 2020, expected to be between 2.5% and 3%, will likely suffer from external risk factors, particularly the US-China trade war and further dampening of exports, says Kasikorn Research Center. Investments in a proposed sustainable equity fund (SEF) are expected to be about 4.5 billion baht lower than projected as high-income taxpayers avoid it because of the lower investment limit compared with long-term equity funds, says Kasikorn Securities.
Deputy Prime Minister Somkid Jatusripitak said the second phase of the 1,000-baht cash handout scheme will be launched this quarter in a bid to stoke economic growth momentum.
The Industrial Estate Authority of Thailand has signed a public-private partnership contract with Gulf MTP LNG Terminal to develop the third phase of Map Ta Phut seaport, worth 55.4 billion baht, on 1,000 rai.
The Energy Ministry will negotiate with the US energy company Chevron to decommission offshore gas platforms in the Erawan field as its concession approaches its end in 2022, in order to avoid arbitration.
The retail price of diesel B10 will be reduced by two baht per litre starting on Tuesday to promote biodiesel.
The Tourism Council of Thailand has cut the projection for tourist arrivals this year to 39.7 million from 40.1 million, as a result of the global economic slowdown and the strong baht.
Sales of new Bangkok condominiums in the fourth quarter are forecast to hit a record low if developers insist on introducing as many new units as planned, Colliers International Thailand has warned.
The new entity emerging from the merger of TMB Bank and Thanachart Bank plans to focus on three core business areas: auto loans, mortgages and financial advisory services.
Central Retail Corporation Plc, the retail arm of Central Group, the country’s biggest mall operator, says it will offer 2.23 billion shares, 1.62 billion of which will be new ordinary shares, as part of its longawaited initial public offering. Further details on timing and price are pending.
The property brokerage Bangkok Citismart, a subsidiary of the SET-listed developer AP Thailand, has begun selling new projects as the resale condo market slows.
SET-listed BEC World, the operator of Channel 3, expects positive operating results in the final quarter of this year from its revamped news programmes. COMING UP: Australia will release September business Confidence on Monday and October consumer confidence on Wednesday. The US Federal reserve will release the minutes of its last meeting minutes on Wednesday.
China and the US will resume trade talks on Thursday and the US will announce September inflation. Elsewhere, Britain and Germany will release August trade figures.
On Friday, Germany will announce September inflation, Canada will release September employment and the US will release October preliminary consumer sentiment.
STOCKS TO WATCH: Capital Nomura Securities recommends selective buying of healthcare stocks in advance of the peak travel season and a government plan to offer a 90-day visa exemption for patients from Japan and the US. Suggested picks are BCH, BDMS and BH. Other top picks for October are AOT, AMATA, CPF, JMART, KAMART, ICHI and STPI.
DBS Vickers Securities Thailand says its fundamental picks for the fourth quarter are ADVANC, AOT, CPALL, DREIT, ERW, STEC and TASCO. For high dividend yields, it recommends KKP, TISCO, LH, DREIT, LALIN, AIMIRT, HREIT, DIF, JASIF and SC.
TECHNICAL VIEW: Maybank Kim Eng Securities Thailand sees support at 1,580 points and resistance at 1,640. Finansia Syrus Securities sees support at 1,590 and resistance at 1,680.