MARKETS
Thai stocks gained 0.96% yesterday as investors shrugged off the conviction of Khunying Potjaman Shinawatra for tax evasion to focus on a global rebound in oil and coal prices.
SERVICES
Close to 600 participants worldwide working in pest control services and the food industry will take part in the Pest Summit 2008 from Aug 13-15 in Bangkok.
ECONOMY
Net capital flows posted a deficit of $3.8 billion in June for the first time in six months, primarily the result of selloffs of local assets by foreign investors.
PTT Plc, the majority state-owned energy conglomerate, is seeking to jointly develop the massive Natuna field in the South China Sea with the Indonesian national oil company PT Pertamina (Persero), the new licence holder. According to PTT senior executive vice-president Chitrapongse Kwangsuksathit, the offer was made following the signing of a memorandum of understanding between the Thai and Indonesian governments to collaborate in natural gas projects.
A new National Provident Fund (NPF) could be established within two years to help strengthen the country's social safety net as it deals with an ageing population.
BANKING
Non-performing loans at Siam City Bank have risen to 7.19% of total loans at the end of June from 6.84% at the end of 2007, due largely to high inflation and weak consumer and business confidence.
BANKING
BankThai directors yesterday approved a capital increase to 50.06 billion baht from 25.03 billion now through the issue of 6.67 billion new common shares in a rights offering.The shares will have a par value of 3.75 baht each, raising 25.03 billion baht in capital for the bank. Existing shareholders will be offered one new share for every one share, with the offering price to be set between the par value of 3.75 baht and a floor price of 0.66 baht, which represents the bank's book value per share as of the end of June 30.
COMMODITIES
The government yesterday agreed to sell rice in its stock on the government-to-government basis to countries mostly in Africa and Asia.
BROKERAGES
Phatra Securities, the country's second largest stockbroker, says revenues in the second half will be lower than in the first half as turbulent markets lead companies to shelve initial public offering plans. Phatra expects market volumes to fall as investors are put off by political uncertainty surrounding Prime Minister Samak Sundaravej's six-month old leadership, the loss of several ministers as part of an anti-graft push, and the handling of a border row with Cambodia.
BY Invitation
Economic pundits were until recently big fans of the notion that the Thai economy will no longer be flying on one engine - a reference to a shift of paradigm whereby exports will cease to be the sole driver of growth in 2008. Recent events notably the political Armageddon, mounting inflationary pressures precipitated by high prices of oil and other commodities and rising interest rates suggest they might have changed their minds.
INDUSTRY
Industrial production volume is expected to increase in the second half of the year in response to higher purchasing orders, led by the electrical and electronics and automobile industries, according to the Office of Industrial Economics (OIE).
IN Brief
BANKING :Fitch Ratings has upgraded the long-term foreign currency issuer default rating (IDR) of Bank of Ayudhya to BBB from BBB-. Several other ratings were also upgraded one step, including the national long-term rating to AA-(tha) from A+(tha). The outlook has been revised to stable from positive.
Nation Multimedia's The Nation newspaper, which was relaunched earlier this year as a business daily, is set for further changes to cope with rising costs. According to Pana Janviroj, president of The Nation, starting today the English daily is no longer operated by Nation Multimedia Group (NMG). Instead, it operates separately under NMG Co Ltd, a subsidiary of the parent company. Also, a separate sub-editing company partly owned by former sub-editors of The Nation will be set up with the backing of NMG.
HOTELS
Tourism-related businesses are urged to offer excellent services and unique products to meet the demand of high-end tourists, a segment that is expected to keep growing in face of the prevailing slump, says an executive of lebua Hotels & Resorts. Cash-rich travellers will continue to visit Thailand because they need to relax and get away from work pressures while prices are not their concern.
CORPORATE COUNSELLOR
The continuous rise in oil prices over the past two years has reached an unprecedented level. The reason for such a sharp rise is the source of much debate. However, what is clear is the devastating effect high oil prices are having on the performance of many businesses in Thailand. The records of the Justice Court Office reveal that the number of bankruptcy cases and cases of dishonoured cheques has steadily increased over the same two-year period. This has a knock-on effect throughout the economy as other businesses suffer as a result of the failure of these bankrupt businesses to pay their debts. In this article we outline the procedure for making a claim for debt repayment in bankruptcy proceedings.
Hotel and restaurant owners want regulators to clarify whether broadcasting rights owners can charge royalty fees for proprietary programmes broadcast on free TV channels.
PREMIUM ICE-CREAM
Movenpick of Switzerland, a maker of super-premium ice-cream, is aiming for sales of 100 million baht over the next four years in the Thai market.
CONSTRUCTION
After building Baan Ua-arthorn low-cost housing in Thailand, the Malaysia-based contractor Bina Puri (Thailand) plans to seek more construction jobs from the private sector, bidding for five projects worth combined three billion baht. ''The Thai economy remains healthy and will continue to grow in the next 10-15 years, seen from the population which is double the Malaysian population,'' said the company's executive chairman, Dato' Mohamed Feisal Bin Ibrahim.
The Panichewa family, the major shareholder of Unique Engineering & Construction and the Don Muang Tollway, has joined hands with Singapore-based construction firm TEE Group to invest 800 million baht to develop a condominium project in the Ratchaprarop area.
