PETROLEUM
PTT Plc may reduce pump prices again next week after it cut prices for two consecutive days this week unless Middle East political tension escalates, according to Chaiwat Choorit, senior executive vice-president for the oil business at the majority state-owned oil company. He said PTT was watching the movement of oil prices closely this weekend to see whether the test-firing of missiles by Iran would drive up tensions and affect oil prices.
MONEY& BANKING AWARDS
Bangkok Bank, the country's largest bank, has won the 2008 Bank of The Year award from Money and Banking magazine. Kannikar Chalitaporn, the president of Siam Commercial Bank, was named financier of the year at the annual awards event held last night. She was cited for her success in expanding the century-old institution, as well as for contributions to society, visionary leadership and professionalism.
The Charoen Pokphand Group, Thailand's largest agribusiness conglomerate, is preparing to expand in India by establishing two more animal feed plants. The new plants would be located in areas where raw materials are widely available, said Pinij Kungvankij, CP's senior vice-president and also a vice-president of CP Aquaculture (India).
REAL ESTATE
As banks have reduced homebuyers' purchasing ability by 10% and the economy continues to slow down in the second half, the second-hand property brokerage Realty World Alliance Co has reduced it sales target by 15% in 2008, according to managing director Visit Kunathornkul. He said political and economic factors now had more influence on homebuyers' decision-making. People's purchasing power decreased as their expenses soared from higher inflation rates and oil prices.
STOCKS
Thai stocks rallied 1.17% yesterday on bargain hunting and speculation ahead of the release beginning next week of second-quarter company earnings. The Stock Exchange of Thailand index closed at 730.29 points, up 8.43, in modest trade worth 13.16 billion baht. Energy stocks led trade, gaining 1.73%, while banks gained 1.15% and property 0.43%.
FINANCE
Soaring prices and volatility in the commodities markets have led to sharply increased interest in hedging instruments among local companies, according to Bank of Tokyo-Mitsubishi UFJ executives. Supong Jiengattanakit, a first senior vice-president at the Bangkok branch of Bank of Tokyo-Mitsubishi UFJ, said interest in the bank's risk management services had risen sharply since opening several months ago.
ECONOMY
The Finance Ministry is ready to increase deficit spending if economic growth this year falls below 5%, according to Finance Minister Surapong Suebwonglee. The fiscal 2009 budget, currently under review by Parliament, calls for expenditures of 1.835 trillion baht and revenues of 1.585 trillion, resulting in a deficit of 249 billion baht or 2.5% of gross domestic product. The 2009 fiscal year starts on Oct 1.
The farm equipment maker Siam Kubota has outlined an ambitious plan to become the production hub for agricultural machinery development in Asean.''Kubota is now expanding to overseas markets by exporting diesel engines, walk-behind tractors and other machinery to new markets including Burma, Laos, Cambodia, Vietnam and India,'' said Veerachai Chaochankit, president of The Siam Kubota Industry.
ALTERNATIVE FUEL
The Industry Ministry has vowed to push for tax and legal reforms to help ease an ethanol oversupply and to support technology development for the industry. While the private sector is developing ethanol rapidly in terms of quality and supply, government policies are not yet persuasive enough to promote ethanol demand, Industry Minister Suwit Khunkitti acknowledged yesterday.
The Bank for Agriculture and Agricultural Co-operatives is cooperating with Kasetsart University to encourage farmers to use organic fertilisers to reduce production costs.
IN Brief
FINANCE :Fitch Ratings has affirmed IRPC Plc's national long-term rating at A-(tha) and short-term rating at F2(tha). The outlook is stable.
ASIA FOCUS
Asia's once-booming property market seems to be heading for some kind of a slowdown of which local Thai companies are looking to take advantage by venturing into the unknown.
ASIA FOCUS
Developers in Singapore are paying property agents bigger commissions - in some cases almost double what was offered a year ago - to push their new residential project launches.
ASIA FOCUS
Riots and protests over high food prices around the world formed the backdrop for statesmen meeting at the G8 summit this week. The goal of the meeting was to issue a statement on food security and chart a way forward toward reducing global food prices. But any announcement must be backed up by significant shifts in government policy that have made the current food crisis significantly worse.
