Recap: Asian stock markets last week were jolted by renewed concerns over China's economic health and escalating tension in Ukraine. The Thai stock market was in a tug of war between profit-taking and buying on dips.
The SET Index moved in a range of 1,501.61 and 1,532.30 points and closed at 1,520.31, up 1.3% from the preceding week, in brisk trade worth 45.55 billion baht a day on average. Foreign investors were net sellers of 939.75 million baht, retail investors sold 134.24 million and brokers 2.29 billion. Institutional investors bought 3.36 billion baht more than they sold.
Big movers: The property developer RICHY moved 30.9% above its 3.30-baht IPO price to 4.32 baht on its debut Thursday and closed on Friday at 4.26 baht. Top gainer HDH increased 27% to 106 baht. Top loser IEC fell 25% to 0.03 baht. BLAND led in volume, gaining 1% to 2.18 baht. The top three by value were JAS, down 12.5% to 6.65 baht; TRUE, up 11.8% to 10.40 baht, and ADVANC, up 1.9% to 213 baht.
Newsmakers: The crisis in Ukraine worsened after Russia sent 20,000 troops close to the country's eastern border. Russian President Vladimir Putin has also banned or limited imports of agricultural products from countries that imposed sanctions on Russia.
Fears for the health of the euro zone have resurfaced following news of weaker-than-expected German industrial orders and data suggesting Italy has fallen back into recession.
China's HSBC/Markit services PMI fell from a 15-month high of 53.1 in June to 50.0 in July, the lowest since November 2005 when data collection began.
Thailand's military regime has expanded planned civil service salary increases beyond an initial proposal to increase pay for only the lowest-paid officials. Base salaries will be raised by 7-8% on average, effective from April 2015. The increase expected to cost taxpayers 40 billion baht per year.
The central bank's Monetary Policy committee kept its benchmark interest rate at 2% as expected, amid signs of economic improvement.
The Bank of Thailand said the current level of household debt, while high at 82.7% of GDP, was not overly worrisome as most of the debt had gone to housing purchases. It said it would start to worry if the level exceeded 85%.
The private sector is expected to take a 20% stake in transport megaprojects worth 2.4 trillion baht to reduce the government's financial burden. Laws to support public-private partnership deals are expected to be completed before the end of the year. Investments by state enterprises would be made through infrastructure funds that are yet to be established. Egat plans a fund worth 16 billion baht. Other enterprises planning infrastructure funds include AOT and the Port Authority of Thailand.
The Industry Ministry has approved factory permits for 158 of the 241 applications submitted last month after the period for approvals was shortened to 30 days from 90. The 241 applicants represented investment of 43.5 billion baht. In the first seven months this year the ministry granted 2,212 permits, down 5.4% from last year, but their value was up 8.8% to 211 billion baht.
The SET will propose that the NCPO waive taxed for mergers and acquisitions to promote ways for Thai businesses to expand.
The beverage maker Ichitan (ICHI) said sales could reach 10 billion baht in 2016 from an expected 7 billion this year as it expands into other Asean markets and diversifies into fruit drinks. ICHI will re-launch Bireley drinks in the fourth quarter after paying 240 million baht for distribution rights in June.
Consumer confidence rose for the third month in July, hitting an 11-month high of 78.2 points, compared with 75.1 in June and 70.7 in May, when the index advanced for the first time in 14 months.
The Metal Tube and Cold-Forming Steel Association wants the interim government to help control hot-rolled coil steel prices, which have risen 20% since the imposition of higher tariffs last year. It foresees a further 10% rise this year, which would drive up prices of steel pipes up by 8-9%.
The Energy Conservation Fund is expected to approve projects worth 3 billion baht this week for development of renewable energy sources.
Indorama Ventures (IVL) reported Q2 net profit of 1.48 billion baht, up 592% year-on-year, due to significantly lower stock losses and higher sales volume.
The Jasmine International (JAS) infrastructure fund could face further delays due to a legal dispute. TT&T has filed a lawsuit against Acumen, a wholly owned subsidiary of Jasmine, which holds 99% of the shares in Triple T Broadband. TT&T claims that since Triple T failed to list on the SET within three years as required under a 2006 agreement, Acumen must sell at least 70% of the shares it held in Triple T to TT&T shareholders.
Berli Jucker Plc has sealed a deal to buy the German retailer Metro AG's cash-and-carry unit in Vietnam for 655 million euros (28.3 billion baht).
Bank of Ayudhya is maintaining its 2014 growth target for SME loans at 13% despite the first-half figure falling far short of the target, saying the H2 recovery should drive loan demand.
PTT is considering selling its oil-palm interests in Indonesia because of lack of expertise in the business. Thailand's National Anti-Corruption Commission has been investigating the venture.
The dispute between Noble Development Plc and a group of shareholders has intensified after ABN Amro Nominee Singapore Ltd came out to defend itself. Suwat Prugsatien, a legal adviser to ABN Amro, said a lawsuit against Noble's management was intended to protect the rights of investors who felt they had been unfairly treated.
ADVANC said net profits fell 7.8% year-on-year to 8.5 billion baht, reflecting 3G base station extension costs and financial costs from issued debentures, despite lower regulatory fees and revenue sharing. It cut its revenue growth forecast for 2014 to 1-2% from 6-8% earlier.
Coming up this week: Japan will report Q2 GDP on Wednesday, followed by a preliminary reading on Q2 euro-zone GDP on Thursday.
Stocks to watch: Capital Nomura Securities recommends two themes for August, starting with laggard plays (buy when the price is weak). Its picks are KTB, KBANK, SCB, BBL, PTTEP, TTA, CK, STEC, CKP, GUNKUL, SIM, BLAND, STPI, QH, ERW, MINT, SPALI and PS. It also likes dividend plays, again buying on weakness — ADVANC, DTAC, INTUCH, LH, SAMART, SCC, PTT, BTS and CPF.
Finansia Syrus Securities recommends stocks that will benefit from infrastructure projects, such as contractors CK and STEC. In retailing it suggests CPALL and in petrochemicals PTTGC.
Technical view: Capital Nomura Securities sees strong support this month at 1,502 and resistance at 1,547. Finansia Syrus Securities sees support at 1,505 and resistance at 1,530.