ECB CHEERS GLOBAL INVESTORS, BUT SELLING PRESSURE HITS SET

RECAP: Global market sentiment has improved following a decline in US bond yields and signals from the European Central Bank that it will continue its asset purchases to stimulate euro zone economies. The Thai bourse was pressured by foreign selling and speculative activity in shares of energy, electronics and digital TV firms.

The SET index moved in a range of 1,761.12 and 1,805.78 points before closing yesterday at 1,778.02, down 1.3% from the previous week, in turnover averaging 61.45 billion baht a day.

Foreign investors were net sellers of 8.41 billion baht and institutional investors sold 3.28 billion worth of shares. Retail investors were net buyers of 11.1 billion baht and brokers bought 586.92 million.

NEWSMAKERS: North Sea Brent crude prices closed above US$75 a barrel on Tuesday for the first time since March 2015 before easing slightly yesterday. Oil prices are up more than 20% from their lows earlier this year, spurred by Opecled production cuts and concern about renewed US sanctions against Iran, which could reduce the latter’s exports by up to 800,000 barrels per day. The European Central Bank has signalled no change in monetary policy despite recent data indicating weakness in euro zone growth, keeping in place its promise to continue its asset purchases at least until the end of September.

French President Emmanuel Macron conceded he may have failed to persuade US President Donald Trump to stick to the international nuclear deal with Iran. Mr Trump has until May 12 to decide whether to renew the agreement intended to curb Teheran’s nuclear programme.

North Korean leader Kim Jong-un and South Korean President Moon Jae-in yesterday affirmed their commitment to “a nuclear-free Korean peninsula” in the first summit between the two countries since 2007.

Auction plans for the Bongkot and Erawan gas blocks in the Gulf of Thailand have finally been determined after almost a dozen postponements in the last two years. The winning bidders are expected to sign production-sharing contracts with the government by February 2019.

PTT Plc is conducting a feasibility study for a 200-billion-baht high-speed railway link between the three major airports in Bangkok and Chon Buri.

The lame-duck National Broadcasting and Telecommunications Commission, its authority extended indefinitely under Section 44, on Wednesday approved a draft for an auction of three 1800MHz licences to pave the way for 5G communication. Interested bidders must submit documents on June 15. Household debt among workers has risen 4.9% year-on-year to an average of 137,000 baht per household, the highest in a decade, according to a university survey.

After a week of mounting speculation, the president of Krungthai Bank and the chairman of TMB Bank said there were no plans for merger talks between the two majority state-owned entities. The government is hoping to nudge some banks into merging to create larger and more regionally competitive institutions. Year-to-date daily trade on the Thailand Futures Exchange is averaging 470,000 contracts, a jump of 45% from the same period last year, as more investors seek to hedge against stock market volatility, TFEX officials said.

J Ventures Co Ltd, a subsidiary of SET-listed Jay Mart Plc, will begin trading its JFin cryptocurrency coin on May 2 on Coin Asset, moving from the Thai Digital Asset Exchange (TDAX) after the latter temporarily suspended domestic digital asset registration. Thailand’s exports rose in March for the 13th straight month, albeit at a slower pace, bringing the first-quarter gain to 11.3%. The Commerce Ministry said the US dollar value of exports rose 7.06% year-on-year in March after increasing 10.3% in February. Domestic car sales rose 12.1% to 95,082 cars in March from a year earlier, boosted by the Bangkok Motor Show and improving public and private investment, the Federation of Thai Industries said.

COMING UP: Thailand will release March industrial production data and China will release April manufacturing and services purchasing managers’ index (PMI) updates on Monday. Germany will announce March retail sales and April inflation, and the US will update March pending home sales and personal spending.

On Tuesday, Canada will release February GDP and the US will release April manufacturing and employment figures. The euro zone and Italy will announce first-quarter GDP on Wednesday. Due the same day are the Caixin manufacturing PMI from China and Japanese consumer confidence for April.

On Thursday, the US will release minutes of the most recent fed meeting and the ISM non-manufacturing and services composite index. Also due is euro zone inflation for April. The US will release April non-farm payroll and unemployment data on Friday.

STOCKS TO WATCH: Tisco Securities recommends stocks benefitting from expected weakening of the baht, such as DELTA, HANA, JWD, SAPPE, ERW and MINT. It says the auto industry recovery should help AH, SAT and NYT, while Eastern Economic Corridor beneficiaries will be CK, STEC, SEAFCO, AMATA, ROJNA, and WHA.

DBS Vickers Securities Thailand recommends accumulating stocks with sound fundamentals, among them AEONTS, AOT, ERW, DIF, IVL, and SENA.

TECHNICAL VIEW: DBS Vickers Securities Thailand sees support at 1,770 points and resistance at 1,800. Capital Nomura Securities sees support at 1,772 and resistance at 1,800.