RECAP: Hong Kong led gains across most Asian and European markets on Friday thanks to a surge in tech giants, while the yen extended gains against the dollar on revived hopes for US interest rate cuts.
The SET index moved in a range of 1,352.84 and 1,372.85 points this week, before closing on Friday at 1,369.92, up 0.7% from the previous week, with daily turnover averaging 40.47 billion baht.
Institutional investors were net buyers of 1.3 billion baht, followed by brokerage firms at 26.03 million. Foreign investors were net sellers of 672.28 million baht, followed by retail investors at 649.96 million.
NEWSMAKERS: The US Federal Reserve on Wednesday left its benchmark interest rate unchanged as expected, citing a lack of progress towards a 2% inflation target. However, it ruled out a rate hike to rein in prices, and dismissed talk of stagflation.
- The yen appreciated to the upper 152 range against the US dollar on Friday in Asian trading, after suspected intervention by Japanese authorities. The currency had opened the week by falling past 160.
- The euro zone emerged from recession with growth of 0.3% in the first quarter and inflation held steady at 2.4% in April. The European Central Bank is expected to start cutting interest rates in June.
- Apple shares jumped late Thursday after the iPhone maker posted stronger-than-expected profit of $23.6 billion on $90.8 billion in revenue in the first three months of this year. The company also announced a $110-billion stock buyback plan, the largest of its kind in US history.
- The OECD raised its forecast for global growth in 2024, boosted by a dynamic recovery in the US. It said it now sees global GDP rising 3.1%, up from its previous projection of 2.9%.
- Standard Chartered reported better than expected first-quarter results, with pre-tax profit up 6% year-on-year to $1.9 billion, on the back of higher interest rates and growth in its wealth and banking business.
- HSBC reported first-quarter revenue of $20.8 billion, exceeding forecasts, but net profit was down slightly from a year ago at $10.84 billion.
- Bitcoin registered its worst month since the collapse of FTX empire, slumping almost 16% in April, just a hair below the decline seen in November 2022. The cryptocurrency was traded at about 59,800 early Friday, compared to its record high of almost $74,000 in mid-March.
- Binance founder Changpeng Zhao was sentenced on Tuesday to four months in jail after pleading guilty to violating US money-laundering laws at the world's largest cryptocurrency exchange.
- Microsoft CEO Satya Nadella announced a new data centre in Thailand to support cloud and AI demand, with an estimated investment of $1 billion. Similar initiatives were announced for Malaysia ($2.2 billion) and Indonesia ($1.7 billion). The company has also pledged to train 2.5 million people in the region in the use of AI by 2025.
- Headline consumer inflation in Thailand rose 0.2% year-on-year in April after seven straight months of declines, The Ministry of Commerce said on Friday. The core Consumer Price Index rose 0.37%.
- The recent increase in domestic diesel prices is fuelling fresh concerns about inflation but manufacturers are expected to maintain prices of goods in the short term to avoid burdening consumers, says the Federation of Thai Industries (FTI).
- The Bank of Thailand estimates that GDP grew just 1% year on year in the first quarter, noting that the economy slowed in March due to weaker domestic demand and tourism. It expects the economy to recover, though, saying it is not revising down its full-year forecast at this time.
- Baht depreciation softened in April, supported by improving economic momentum. During the first quarter, the baht weakened by 7.8% against the dollar, the second-largest depreciation rate in Asia, trailing only the Japanese yen, which fell 9.6%.
- Government spokesperson Chai Wacharonke said the minimum wage would rise to 400 baht a day nationwide, with gradual increases starting on Oct 1. The national wage committee will discuss details on May 14.
- Contracts for new state investment projects worth 250 billion baht have already been signed since the enactment of the fiscal 2024 Budget Expenditure Act last month, according to the Ministry of Finance.
- The Board of Investment said it received 724 investment applications in the first quarter, up 94% year-on-year, with a combined project value of 228 billion baht, up 31%, reflecting increased investor confidence.
- Tourism operators are urging the new tourism minister to revive the plan to collect a 300-baht fee from tourists because it is not considered an obstacle to arrivals.
- B.Grimm Power said it would invest $3.39 million to acquire a 40% shareholding in ThreeEightSix Holdings Ltd, an independent power producer, aiming to penetrate the clean energy market in the Middle East.
- Businesses are repeating their call for the government to change the country's electricity market from a single-buyer system because it does not support increased use of renewable energy that businesses could buy direct from producers.
- AirAsia is banking on tourism growth within Southeast Asia to support its latest airline, AirAsia Cambodia, with inaugural flights getting under way on Thursday.
- The Ministry of Finance will start collecting 7% value-added tax in May on imported goods from Singapore, Malaysia and Vietnam valued under 1,500 baht after cabinet approval.
- Bangkok Bank (BBL) took the lead among commercial banks cutting their minimum retail rate (MRR) for loans by 25 basis points, while state financial institutions also decided to cut their MRR from May 1 for six months to assist vulnerable retail and SME customers.
- SET-listed Ratch Group expects positive business prospects for its coal-fired thermal power plants in Indonesia after acquiring them from Mitsui & Co for $590 million.
COMING UP: On Tuesday, the Reserve Bank of Australia will announce its interest rate decision and the US will release a consumer credit update. China will report April trade figures on Wednesday. The Bank of England will hold a rate meeting on Thursday, and Japan will update household spending data. Due Friday is a Chinese inflation update and monthly GDP from the UK.
- Domestically, the Thai National Shippers' Council will discuss the export outlook on Tuesday. An updated investor confidence index will be released on Wednesday. On Friday, members of the Senate complete their 5-year term.
STOCKS TO WATCH: Yuanta Securities recommends accumulating stocks based on three themes: retail plays that will be major beneficiaries of economic stimulus, notably CPALL and BJC; food and beverage firms with a good export outlook given the weak baht: ICHI, SAPPE, OSP, CBG and COCOCO; hospital operators BDMS and BH as they are expected to outperform their industry.
- Tisco Securities recommends stocks expected to show year-on-year growth, among them AAI, BDMS, CPAXT, ICHI and NSL; and stocks with a chance of entering the SET50 in the second half: BJC and ITC. Top picks for May are AAI, BDMS, BJC, CPAXT, ICHI, ITC, NSL and STANLY.
TECHNICAL VIEW: Tisco Securities sees support at 1,350 points and resistance at 1,380. InnovestX Securities sees support at 1,350 and resistance at 1,380.