Recap: Asian stock indices were mixed last week as rising geopolitical risks from the US missile strike on Syria and soaring tensions on the Korean peninsula kept investors on edge. The same concerns lifted gold to five-month highs, while oil advanced amid confidence that Saudi Arabia will support an extension to Opec-led output cuts just as US stockpiles show signs of shrinking. The Thai stock market edged up, driven by buying in heavyweight energy stocks.
The SET index was rangebound between a low of 1,576.99 and a high of 1,589.50, also the close, up 0.4% from the previous week, in modest turnover averaging 35.9 billion baht a day in a shortened three-day week. Foreign investors were net buyers of 225 million baht, institutional investors bought 1.39 billion and brokers 617.8 million. Retail investors were net sellers of 2.24 billion baht.
Big movers: WHA Utilities and Power Plc (WHAUP) fell almost 1% below its IPO price of 26.25 baht on its opening day on the SET on Monday and closed the week at 26.50 baht, up almost 1%. Mudman (MM) rose 4.8% above its IPO price of 5.25 baht but finished the week down marginally at 5.20 baht.
BANPU led in turnover, adding 2.9% to 21.10 baht; followed by BBL, rising 2.2% to 186.50 baht, and PTT, up 0.5% to 397 baht. MM led in volume. Top gainer KWG surged 42.2% to 3.30 baht and top loser RICH fell 11.1% to 0.08 baht.
Newsmakers: Janet Yellen, the US Federal Reserve chair, says the Fed is shifting its focus from stimulating the economy to keeping growth on an even keel. The central bank is also preparing to start reducing its large holdings of securities by year-end.
Bank of Japan Governor Haruhiko Kuroda said raising interest rates on excess reserves that lenders hold with the bank was one option the central bank could use once it starts to unwind its quantitative easing programme. He expressed confidence that policymakers would manage the exit smoothly, including reducing holdings of bonds purchased in recent years to stimulate growth.
The BoJ maintained its rosy economic assessment for eight of Japan's nine regions and revised up the assessment for one. Two regions, including Tokai, home to Toyota Motor Corp, said their economies were "expanding moderately" -- the first time in nine years the BoJ had used such upbeat language for more than one region.
World trade is on track to expand by 2.4% this year, though there is "deep uncertainty" about economic and policy developments, particularly in the US, the World Trade Organization said. There was a risk that trade activity could be "stifled" due to lack of clarity about government policies, it added.
International Monetary Fund managing director Christine Lagarde says that after six years of disappointing growth, the world economy is finally gaining momentum. But she warns of a number of potential threats, ranging from political uncertainty in Europe to protectionism that could hinder global trade.
The government will use the powerful Section 44 of the interim constitution to speed up the development of the much-touted Eastern Economic Corridor (EEC), improving foreign investor confidence in the programme. However, the bureaucratic bypass will be applied on a case-by-case basis, with the first focus on encouraging international schools to set up shop in the region.
Prime Minister Prayut Chan-o-cha has also invoked Section 44 to amend the Public Limited Companies Act to give more clout to minority shareholders. The amended Section 100 allows shareholders who hold at least 10% of total shares, regardless of the actual number of shareholders, to call an extraordinary meeting within 45 days to pave the way for new board and executive appointments. Under the previous law, at least 25 retail investors who owned a combined 10% or more were required to call an extraordinary shareholders' meeting.
Advertising spending on all media outlets fell nearly 4.5% year-on-year to 26 billion baht in the first quarter because of the slow economic recovery, according to Nielsen Thailand. Consumer spending also remained weak, it said.
TCC Group, the property arm of billionaire Charoen Sirivadhanabhakdi, is making a tender offer for three property funds in a bid to regain ownership of the assets. The combined offer is valued at 80 billion baht. The funds are the Thai Commercial Investment Freehold and Leasehold Fund, Thai Retail Investment Fund and Thai Hotel Investment Freehold and Leasehold Property Fund.
Charoen Pokphand Foods Plc (CPF), the flagship of the agribusiness giant Charoen Pokphand Group, is upbeat about duck shipments after New Zealand approved imports of cooked duck meat from Thailand.
The telecom regulator has urged the Digital Economy and Society (DE) minister to settle the operating fee structure for the latest two satellites of Thaicom Plc by May in order to put an end to a year of confusion in the local satellite industry.
CIMB Thai Bank (CIMBT) delivered better-than-expected retail loan growth in the first quarter, reaching double digits. The bank's new retail loans for the three months to March expanded by 10% over the same period last year to 4.9 billion baht.
Coming up this week: Data on March US housing starts and building permits will be released today. Euro zone inflation figures are due tomorrow.
Indonesia's central bank will meet on Thursday.
Thailand will release automobile sales data for March on Friday.
Stocks to watch: Tisco Securities recommends stocks expected to have good first-half performances, among them STEC, SEAFCO, TPIPL, JWD, MALEE and TWPC. Also recommended are those expected to report good Q1 results -- AP, BANPU, BBL, BEAUTY, BTW, JWD, KTB, LH, MEGA, MTLS, ROJANA and TMB.
Asia Plus Securities is overweight on food exporters, especially chicken and shrimp (CPF and TU) and commodities such as rubber (STA) and sugar (KSL). The broker's stock picks are TU, STA and KSL.
Technical view: Maybank Kim Eng Securities (Thailand) sees support at 1,560 with resistance at 1,620. Tisco Securities tips support at 1,565 and resistance at 1,600 points.