Recap: The rout in Asian and emerging stock markets began last week on concerns over the health of China after manufacturing dipped to a six-month low. The sharp fall in Argentina's and Turkey's currencies and another cut by the US Federal Reserve in its monthly asset purchases also sparked investors' fears of a continuing exodus of offshore funds from emerging markets. Political tensions at home also clouded Thai stock market sentiment.
Spending on Lunar New Year offerings this year will grow by 4% to 5.8 billion baht, down from last year’s 6%, according to Kasikorn Research Center. THANARAK KHOONTON
The SET index moved in a tight range of 1,258.05 to 1,298.06 points before closing on Friday at 1,274.28, down 3.1% on the week, in sluggish trade worth 24.77 billion baht a day. Foreign investors sold 17.76 billion baht more than they bought, while retail investors were net buyers of 8.21 billion baht, institutional investors 6.54 billion and brokers 3 billion baht.
Big movers: RPGC (RPC) was the top gainer, rising 17.6% to 1.67 baht. Energy Earth (EARTH) was the top loser, sliding 10.3% to 6.10 baht. KBANK, tops in value, lost 3.1% to 170 baht, followed by AOT, falling 2.3% to 171.50 baht, and ADVANC shed 2.8% to 290 baht. Jasmine International (JAS) led in volume, down 1.4% to 7.05 baht.
Newsmakers: The US Federal Reserve said it would cut its monthly asset purchases by $10 billion to $65 billion this month.
- The Markit/HSBC final manufacturing PMI of China for January dipped to 49.5 from December's 50.5, the first fall in six months.
- Argentina's peso suffered the biggest one-day fall in 12 years after the central bank scaled back intervention in a bid to preserve reserves that have fallen to a seven-year low.
- Turkey's central bank raised its overnight lending rate to 12% from 7.75%, one-week repo rate to 10% from 4.5%, and overnight borrowing rate to 8% from 3.5% to defend its crumbling lira.
- Caretaker Prime Minister Yingluck Shinwatra insisted on going ahead with Sunday's election, which will not produce enough MPs to allow for the House of Representatives to convene. The cost to Thai taxpayers has been 3.8 billion baht so far.
- The Finance Ministry called off a 20-billion-baht bridging loan auction aimed at borrowing to repay unpaid rice farmers as only a few banks participated.
- Thailand's 2013 exports fell 0.3%, the first fall in four years.
- Siam Cement's Q4 net profit fell 16% from Q3 because of a 45-day maintenance shutdown at its petrochemical complex, a forex loss and declines in cement and paper units. However, full-year 2013 net profit rose 19% on gains in petrochemical and cement businesses.
- Amarin Printing and Publishing will invest 5.87 billion baht in digital television to expand its media coverage.
- Ratchaburi Electricity Generating Holding Plc acquired a 50% stake in Tri Energy (TECO) for 700 million baht, raising its shareholding to 100%.
- Thai Union Frozen Products, the world's largest canned tuna producer, expects revenue from sardines to reach 10% of its total in five years from 6% now.
- RS Plc, the country's second-largest entertainment company, expects to see its revenue jump by 43% this year to 5 billion baht thanks to the startup of digital TV.
Coming up this week: Thailand will announce January inflation today and China will update its services PMI figures.
Stocks to watch: KT Zmico Securities recommends accumulating stocks with robust earnings prospects and high dividend yields. Its top picks are PTT, PTTEP, PS and TICON. Krungsri Securities recommends dividend plays such as ADVANC, KTB, DELTA, HANA and PTTGC.
Technical view: KT Zmico sees support lines at 1,250 and 1,200, with resistance at 1,290 and then 1,300. Krungsri Securities sees support at 1,230 and 1,200 and resistance at 1,280 and 1,300.