RE­CAP: Global stocks fell amid surg­ing Covid-19 in­fec­tions glob­ally, with Hong Kong post­ing its big­gest weekly drop in six months. Euro­pean stocks fell along with US equity-in­dex fu­tures as in­vestors weighed the re­ced­ing prospects of a new Amer­i­can stim­u­lus pack­age.

The SET in­dex moved in a range of 1,241.52 and 1,295.35 points this week be­fore clos­ing at 1,244.94 points, down 3.4% from the pre­vi­ous week, in daily turnover av­er­ag­ing 47.1 bil­lion baht.

Re­tail in­vestors were net buy­ers of 15.13 bil­lion baht and bro­ker­age firms pur­chased 1.4 bil­lion. In­sti­tu­tional in­vestors were net sell­ers of 10.16 bil­lion and for­eign in­vestors off­loaded 6.36 bil­lion baht worth of shares.

NEWS­MAK­ERS: Mas­sive sums of al­legedly dirty money worth US$2 tril­lion flowed be­tween 1999 and 2017 through some of the world’s largest banks, ac­cord­ing to a re­port by the In­ter­na­tional Con­sor­tium of In­ves­tiga­tive Jour­nal­ists. The in­ves­ti­ga­tion points in par­tic­u­lar to five ma­jor banks — JPMor­gan Chase, HSBC, Stan­dard Char­tered, Deutsche Bank and Bank of New York Mel­lon — ac­cused of con­tin­u­ing to move as­sets of al­leged crim­i­nals, even af­ter be­ing pros­e­cuted or con­victed for fi­nan­cial mis­con­duct.

The United States passed 200,000 deaths from the coronaviru­s pan­demic, while a record-break­ing wave of new in­fec­tions has forced au­thor­i­ties in many Euro­pean coun­tries to reim­pose lock­down re­stric­tions. The Chi­nese vac­cine de­vel­oper Si­no­vac Biotech Ltd said on Thurs­day that coun­tries run­ning its fi­nal-stage clin­i­cal tri­als — among them Brazil, In­done­sia and Tur­key — will get its coronaviru­s shots at the same time as China, un­der­scor­ing how vac­cine sup­ply agree­ments could ce­ment diplo­matic ties in the Covid-19 era.

US Pres­i­dent Don­ald

Trump said he would nom­i­nate a re­place­ment for the late Ruth Bader

Gins­burg on the Supreme

Court to­mor­row, and in­sisted the Se­nate should vote on his choice be­fore the Nov 3 elec­tion.

An Or­a­cle-led deal to re­struc­ture own­er­ship of the pop­u­lar video app Tik­Tok to stave off a US ban ap­pears to be fal­ter­ing. Pres­i­dent Trump has vowed to block any deal that al­lows the com­pany’s Chi­nese par­ent firm to re­tain any con­trol.

EU for­eign min­is­ters failed to agree on sanc­tions against Be­larus, where Pres­i­dent Alexan­der Lukashenko was sworn in at a se­cret cer­e­mony this week de­spite wide­spread protests over a rigged elec­tion. In­done­sia’s econ­omy is set to con­tract for the first time since the Asian fi­nan­cial cri­sis of 1998 as the coun­try strug­gles to get virus cases un­der con­trol.

Myan­mar plans to push ahead with the Nov 8 gen­eral elec­tion de­spite calls from op­po­si­tion par­ties to post­pone it be­cause of a surge in coronaviru­s cases, which now are ap­proach­ing 8,000.

Ant Group, the fi­nan­cial arm of the Chi­nese e-com­merce ti­tan Alibaba, is plan­ning the big­gest IPO in history, rais­ing as much as US$35 bil­lion in a joint list­ing in Hong Kong and Shang­hai.

AirAsia Group says it is build­ing a su­per­app from its ex­ist­ing mo­bile ap­pli­ca­tion and web­site to pro­vide ser­vices such as e-com­merce, de­liv­er­ies and pay­ments. It will be avail­able next month in Thai­land and Asean. Shares in HSBC plunged to a 25-year low Mon­day on fears the bank could be added to a Chi­nese list of firms deemed a threat to na­tional se­cu­rity and fol­low­ing news it had been ac­cused of al­low­ing fraud­u­lent ac­tiv­ity to go un­pun­ished. Aus­tralia’s West­pac bank has agreed to pay a record A$1.3 bil­lion (US$923 mil­lion) fine for more than 23 mil­lion breaches of money-laun­der­ing laws. Thai­land’s eco­nomic re­cov­ery is ex­pected to take longer than pre­vi­ously an­tic­i­pated, mainly due to the dras­tic de­cline in for­eign tourist num­bers, says the Bank of Thai­land. It slashed its GDP growth fore­cast for 2021 from 5% to 3.6% as the pan­demic con­tin­ues to ham­per in­ter­na­tional travel.

The Stock Ex­change of Thai­land on Oct 1 will re­sume nor­mal rules for short-sell­ing prices with a zero-plus tick and ceil­ing and floor lim­its of 30%, as mar­ket volatil­ity has eased.

The govern­ment is con­sid­er­ing an ex­ten­sion of ex­cise tax re­duc­tions for jet fuel for an­other six months, claim­ing the im­pact of the pan­demic on low-cost air­lines re­mains un­abated.

A se­nior So­cial Se­cu­rity Of­fice of­fi­cial de­fended its in­vest­ment in the SET-listed Sri Panwa Hos­pi­tal­ity Real Es­tate In­vest­ment Trust, say­ing it is in line with SSO reg­u­la­tions. SSO has in­vested about 500 mil­lion baht in SRIPANWA since 2013. So far, it has yielded around 200 mil­lion baht in re­turns.

The Bank of Thai­land is not con­cerned about liquidity in the bank­ing sys­tem, a direc­tor said on Mon­day, af­ter anti-govern­ment demon­stra­tors called for peo­ple to close their ac­counts at Siam Com­mer­cial Bank.

Krungthai Bank said it was ready to co­op­er­ate with lo­cal and in­ter­na­tional reg­u­la­tory bod­ies to in­ves­ti­gate fund trans­fers pend­ing clearer in­for­ma­tion from the US Trea­sury Depart­ment’s Fi­nan­cial Crimes En­force­ment Net­work. KTB, Bangkok Bank, Kasiko­rn­bank and the Exit Bank were linked by the In­ter­na­tional Con­sor­tium of In­ves­tiga­tive Jour­nal­ists (ICIJ) to 92 sus­pi­cious trans­ac­tions to­talling US$41.35 mil­lion be­tween 2000 and 2017.

Ho­tel op­er­a­tors have wel­comed the prospect of ad­di­tional hol­i­days in Novem­ber and De­cem­ber but have raised con­cerns about un­equal op­por­tu­ni­ties for ho­tels in dif­fer­ent tiers.

A seven-day quar­an­tine for for­eign tourists can be put into ef­fect in Novem­ber if the first batch of in­bound tourists sched­uled to ar­rive in Oc­to­ber is clear of coronaviru­s in­fec­tions, says the Tourism and Sports Min­istry.

New busi­ness reg­is­tra­tions con­tin­ued to fall in Au­gust, dip­ping 7% from the same month last year as the busi­ness sec­tor frets over the pan­demic.

With ris­ing de­mand for rub­ber gloves, prod­ucts re­lated to work­ing from home, ap­pli­ances, health­care items and food be­cause of the pan­demic, the Com­merce Min­istry ex­pects the coun­try’s over­all ex­ports to shrink by just 5-8% this year. The value of Thai­land’s dig­i­tal in­dus­try is ex­pected to climb 1.2% to 655.6 bil­lion baht this year and surge 12.9% in 2021, driven by dig­i­tal trans­for­ma­tion, 5G and the adop­tion of ar­ti­fi­cial in­tel­li­gence and the In­ter­net of Things, says the Dig­i­tal Econ­omy Pro­mo­tion Agency.

SCG Pack­ag­ing Plc (SCGP), the coun­try’s big­gest pack­ag­ing com­pany, plans to raise as much as 39.5 bil­lion baht in the na­tion’s sec­ond-largest IPO this year. The unit of Siam Ce­ment Group Plc set a price range of 33.50 baht to 35 baht for its of­fer­ing of 1.13 bil­lion shares in Oc­to­ber.

SET-listed de­vel­oper San­siri Plc has in­vested 25 mil­lion baht in a new ven­ture, Hugs In­sur­ance Bro­ker Co, via wholly owned sub­sidiary San­siri China Co to di­ver­sify into new busi­ness seg­ments.

COM­ING UP: Bri­tain and the US will an­nounce fi­nal sec­ond-quar­ter GDP data on Wed­nes­day. Due the same day is a Chi­nese man­u­fac­tur­ing PMI and update and the closely watched Tankan large man­u­fac­tur­ers’ in­dex in Ja­pan.

Thai­land on Wed­nes­day will an­nounce Au­gust in­dus­trial pro­duc­tion, cur­rent ac­count, pri­vate in­vest­ment and con­sump­tion and July re­tail sales.

The Re­serve Bank of In­dia will an­nounce its in­ter­est rate de­ci­sion on Thurs­day and the US will re­lease Au­gust per­sonal spend­ing. Thai­land will an­nounce Septem­ber man­u­fac­tur­ing PMI, busi­ness con­fi­dence and in­fla­tion.

Ja­pan will re­lease Septem­ber con­sumer con­fi­dence and the US will an­nounce Septem­ber non-farm pay­rolls on Fri­day.

STOCKS TO WATCH: Cap­i­tal No­mura Se­cu­ri­ties rec­om­mends re­tail busi­nesses that will ben­e­fit from govern­ment mea­sures to spur con­sump­tion spend­ing. They in­clude HMPRO, JMART, COM7, CPN, CRC, GLOBAL and DOHOME.

The bro­ker is un­der­weight on en­ergy given fall­ing crude prices and is wary of the tourism sec­tor be­cause of a sec­ond Covid wave in sev­eral coun­tries. IT is more up­beat on food, tech­nol­ogy and health­care, with rec­om­mended stocks in­clud­ing TU, CPF, KCE, HANA, XO, ADVANC, INTUCH and BDMS.

Coun­try Group Se­cu­ri­ties rec­om­mends high-div­i­dend and growth stocks amid the low in­ter­est rate en­vi­ron­ment. Sug­gested stocks are ADVANC, RATCH, TTW, AUCT, VGI, BEM, MA­JOR and TKN.

TECH­NI­CAL VIEW: May­bank Kim Eng Se­cu­ri­ties Thai­land sees sup­port at 1,232 points and re­sis­tance at 1,270. DBS Vick­ers sees sup­port at 1,230 and re­sis­tance at 1,270.


Unit: bil­lion baht


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