Traders wait for clarity on syria

Traders wait for clarity on syria

Recap: Tensions over Syria weighed on global sentiment ahead of a US Congressional debate today over President Barrack Obama's proposed military strike. In the Thai market, political tension triggered by rubber farmers' protests capped the upside of a rebound that followed two weeks of declines.

The SET Index traded in the range of 1,294.30 and 1,334.15 and closed last week at 1,336.25, up 3.24% from a week earlier, with modest average turnover of 34.48 billion baht a day. Local institutions were net buyers of 2.98 billion baht. Retail investors were net sellers of 2.61 billion, followed by brokers at 374.92 million and foreign investors at 3.54 million baht.

Big movers: Communication and System Solution (CSS) disappointed investors on its SET debut, closing 29.3% below the 3-baht IPO price on Tuesday. It closed Friday at 2.68 baht. Sea Oil (SEAOIL) rose 13% above its 3.45-baht IPO price on the MAI on Tuesday and finished the week at 5.05 baht, up 46.4%.

TRUE led in value and volume, rising 3.85% from a week before to 6.75 baht, driven by its planned infrastructure fund. KBANK gained 5% to 167 baht, and INTUCH rose 1.6% to 77.25 baht. Thai Rung Union Car (TRU) was the top gainer, soaring 17.2% to 7.15 baht. Thai Polycon (TPOLY) was the top loser, falling 15.25% to 2.00 baht.

Newsmakers: The Securities and Exchange Commission (SEC) has discussed with brokers possible controls on proprietary trading after brokers' stock trading has been blamed for causing some share price distortions.

- The Bank of Thailand's Monetary Policy Committee (MPC) projected the economy in 2013 and 2014 would expand by less than previous forecasts, given a longer slowdown in private consumption and exports, coupled with the risk of delay in planned government stimulus.

- On the political front, the parliamentary debate on constitutional amendments persists and may further delay deliberation of the 2-trillion-baht megaproject borrowing bill.

- The consumer confidence index fell to a nine-month low of 79.3 points in August, the fifth straight monthly decline, from 80.3 in July.

- IRPC Plc expects a profit this year thanks to extra gains from land sales worth 1 billion baht in Rayong and a higher spread in the petrochemical business in H2.

- Subway operator Bangkok Metro (BMCL) expects the Purple Line extension will be running 40 months from now, two years behind the original schedule of 2015.

- Noble Development Plc plans to resume single-house development with a new project in northern Bangkok next year.

- Central Pattana Plc, the SET-listed property arm of Central Group, has earmarked 120 billion baht to develop 30 shopping centres in Malaysia, Indonesia and Vietnam over the next 15 years. It aims to become a regional retail developer ahead of rivals CapitaMalls of Singapore and SM Prime Holdings in the Philippines.

- East Water Resources Development and Management Plc plans to expand to other parts of the country after supplying only the Eastern Seaboard and Chon Buri for 20 years.

Coming up this week: Markets will assess the trade data released over the weekend by China, along with consumer and producer price indices today, and industrial output and retail sales tomorrow.

- The Thai House of Representatives will likely consider the 2-trillion-baht infrastructure loan bill this week.

Stocks to watch: Asia Plus recommends trading buys in PTT, PTTEP, TTA and BANPU. KK Trade Securities recommends medium-term investment buys in INTUCH, INET, MODERN, STEC, SRICHA, PTTEP and STANLY; and short-term trading in JAS, THCOM, LH, BANPU and AH.

Technical view: Asia Plus Securities sees support at 1,298 and resistance at 1,380. Finansia Syrus Securities sees support at 1,300, and resistance at 1,350 and 1,400.

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