STOCKS MOVE UPWARD AS US RATE-HIKE CONCERNS EASE
Recap: US Federal Reserve minutes suggesting it is likely to refrain from raising interest rates anytime soon, and hopes of fresh stimulus from central banks pushed up stock markets last week. However, a sharp fall in oil prices on Thursday trimmed some gains before surprisingly good US jobs data sparked a rally on Friday. Thai shares extended their gains.
The SET index moved in a range of 1,443.97 and 1,464.10 points and closed at 1,455.65, up 0.7% from the previous week, in heavy turnover averaging 55.4 billion baht a day. Retail investors were net sellers of 5.48 billion baht and institutional investors sold 1.56 billion. Foreign investors were net buyers of 5.72 billion baht and brokers bought 1.32 billion.
Big movers: ALT surged 60.6% above its 4.70-baht IPO price on its first trading day on July 4. The stock also led in turnover, advancing 70.2% to 8 baht. BANPU, gaining 7.5% to 15.80 baht and KBANK, up 2.9% to 1.75 baht, were second and third in turnover. Top gainer U jumped 33.3% to 0.04 baht, while top loser TFD fell 91.3% to 3.48 baht. BWG led in volume, adding 4.1% to 2.52 baht.
Newsmakers: The Bank of England said it had taken steps to ensure British banks keep lending and insurers do not dump corporate bonds in the “challenging” period following the Brexit vote. It said risks it had identified before the referendum were starting to materialise, including lower demand for commercial property.
UK consumer confidence plunged the most in 21 years, according to a post-Brexit survey conducted by the market research firm GfK. It reported a reading of minus 9, compared with minus 1 earlier in June.
Australia’s central bank kept its interest rate at an all-time low of 1.75% as expected, as the country awaited the final outcome of elections in which the incumbent coalition held a narrow lead. Standard & Poor’s warned of a downgrade to Australia’s AAA credit rating within two years, saying the knife-edge July 2 vote might have weakened the government’s ability to tackle budget deficits.
The Philippines cut its growth target, but vowed to spur activity by spending more on infrastructure. The economy is now expected to grow 6-7% this year, from the previous forecast of between 6.8% and 7.8%, Budget Secretary Benjamin Diokno said.
Thailand’s consumer confidence hit a 25-month low in June as Thais fretted about the slow economic recovery, weak exports, the possible adverse impact from Brexit and rising unemployment. The index compiled by the University of the Thai Chamber of Commerce (UTCC) was 71.6 in June, against 72.6 in May.
Toyota Motor Thailand surprised the auto industry by launching a voluntary redundancy scheme to reduce its headcount by 800, but other carmakers have no intention of following suit, says the Federation of Thai Industries (FTI). Production at Toyota is currently running at 60-70% of capacity and the company says car buyers’ sentiment is still weak.
The Tourism Authority of Thailand (TAT) aims for 12% growth in tourism revenue to 2.89 trillion baht in 2017, thanks to an expected economic recovery and effective cooperation among tourism-related agencies and private operators.
Six major gold dealers believe local prices will reach 24,000 baht per baht weight (15.16 grammes), from 22,650 baht now, in the second half as global economic uncertainty and the Brexit effect lifts gold demand.
Business sentiment improved slightly in June, reversing two months of declines, as falling commodity prices led to lower production costs. The Bank of Thailand business sentiment index (BSI) rose to 50.4 from 49.7 in May.
The three big mobile operators have complained that proposed maximum tariff rates for 3G and 4G mobile services impede the operation of an open, flexible and competitive market. The maximum 3G rate has been set at 82 satang a minute for voice, 1.33 baht per SMS, 3.32 baht per MMS and 28 satang a megabyte for data. The maximum 4G tariff is 69 satang a minute for voice, 1.15 baht per SMS, 3.11 baht per MMS and 26 satang per Mb for data.
Krungthai Bank (KTB) president Vorapak Tanyawong has announced that he will not extend his four-year term when it ends on Nov 8.
Thai Union Group Plc (TU), the world’s biggest exporter of canned tuna, is acquiring a major stake in the Canadian lobster processor Les Pecheries de Chez Nous to expand its customer base.
Thai Airways International is gearing up to construct an aircraft maintenance, repair and overhaul centre at U-Tapao airport, targeting large-sized aircraft.
Ratchaburi Electricity Generating Holding Plc plans to invest 70 billion baht to expand its power generating capacity to 10,000 megawatts by 2023 from 6,956 MW now. Coming up this week: The steel fabrication group BT Wealth Industries makes its MAI debut today. Its IPO price was 3.75 baht each.
China’s trade balance for June and euro-zone industrial production in May are due on Wednesday.
The Bank of England and the Bank of Korea will meet on Thursday.
China’s second-quarter GDP and US inflation in June are available on Friday. Due the same day are eurozone inflation and retail sales data for June.
Stocks to watch: Finansia Syrus has buy recommendations for BBL, SNC and TU. Its picks for the month are ARROW, CK, KBANK, PTTGC and TPCH.
Top picks at DBS Vickers Securities (Thailand) are ADVANC, INTUCH, TMT and JASIF. It also recommends high-dividend plays — DIF, CPNRF, SC, QH, SIRI and BCP — and fundamental stocks — CK, CPALL, CPN and JASIF. Technical view: Bualuang Securities tips support at 1,430 points with resistance 1,470. Finansia Syrus sees support at 1,444 and resistance at 1,464 points.