Recap: Global stock markets were rattled by escalating tensions between the US and North Korea over the latter's missile tests. Investors subsequently are seeking shelter in safe havens such as gold and government bonds and shunning risk assets including oil and the US dollar. The Thai stock market was also under selling pressure.
The SET index moved in a narrow range of 1,556.22 and 1,577.44 points before closing at 1,561.31, down 1.1% from the previous week, in moderate turnover averaging 36.1 billion baht a day. Institutional investors were net sellers of 2.47 billion baht. Brokers were net buyers of 939 million baht, foreign investors 921 million and retail investors 610 million.
Big movers: Ngress Industrial (Thailand) Plc INGRS gained 6% above its 1.33-baht IPO price to 1.41 baht on its SET debut Wednesday and closed Friday at 1.43 baht.
AOT led in turnover, losing 1.4% to 52.50 baht. CPF surged 8.3% to 26.75 baht. SCB was up 0.3% to 143.50 baht. U led in volume, steady at 0.03 baht. OTO was the top loser, sliding 28.9% to 5.30 baht. Top gainer TEAM surged 42.3% to 1.85 baht.
Newsmakers: US President Donald Trump warned Pyongyang not to make good on its threat to fire a missile toward Guam. "Military solutions are now fully in place, locked and loaded, should North Korea act unwisely. Hopefully Kim Jong Un will find another path!" Mr Trump tweeted.
♦China's exports and imports grew much less than expected in July, raising concerns over whether global demand is starting to cool even as major Western central banks consider scaling back years of massive stimulus support. China's export growth slowed to 7.2% in July from a year earlier, the weakest pace since February and cooling from 11.3% in June. Imports rose 11%, the slowest growth since December and down from a 17.2% rise in June.
♦The State Railway of Thailand (SRT) has chosen the winning bidders for two sections of a 169-kilometre double-track railway worth 16 billion baht from Nakhon Pathom to Hua Hin. Sources said AS Associated Engineering (1964) Co Ltd made the lowest bid for the section from Nakhon Pathom to Nong Pla Lai, valued at 8.39 billion baht, and SET-listed Sino-Thai Engineering and Construction (STEC) won the bid for the second section from Nong Pla Lai to Hua Hin, worth 7.67 billion. Contracts are expected to be signed next month pending SRT board approval.
♦Four bank creditors of beleaguered Energy Earth Plc (EARTH) will attempt to find a solution to the company's debt delinquency in the next two weeks. The four are Krungthai Bank (KTB), Kasikornbank (KBank), Bank of Ayudhya (BAY) and the Export-Import Bank of Thailand.
♦The SEC last week asked EARTH to submit a document concerning contingent liabilities worth 26 billion baht within five business days, and is also demanding a special audit of the coal trader's debt obligations.
♦TOA Paint Thailand Plc will be the first paint company to list on the SET, scheduled for the fourth quarter of this year. The country's largest maker of decorative paints and coatings will float 507.6 million shares in its IPO, or 25.02% of its equity, with the proceeds to fund local and overseas expansion. The SEC last week approved the IPO application and filing.
♦Siam City Cement Plc (SCCC), the country's second-biggest cement maker, posted an 80% drop in second-quarter net profit, its steepest decline in 17 years, as rising costs and lighter demand at home eroded earnings.
♦The possibility of another temporary tax break on domestic travel remains unresolved after meeting of the Finance Ministry and the Tourism Authority of Thailand (TAT) failed to settle the matter.
♦IRPC Plc, the petrochemical arm of PTT Plc, expects its best-ever business performance next year, thanks to the completion and full-year operations of its upstream project for hygiene and value-added products (UHV). President Sukrit Surabotsopon forecast earnings before interest, tax, depreciation and amortisation next year would reach 10 billion baht, up 30% from an estimated 7 billion this year.
♦Nok Air will have another go at a capital injection to get its turnaround into the advanced stage. The budget airline's board has resolved to stage an additional share offering to existing shareholders with 1.207 billion new shares. Current shareholders would be entitled to subscribe to one new share at 1.50 baht for each share held, with a par value of one baht.
♦The Bank of Thailand expects the delinquency rate of commercial banks' bad loans to peak in the fourth quarter as a broader-based economic recovery and robust export growth take hold.
♦TU reported a Q2 net profit of 1.41 billion baht, declining 7.6% year-on-year on rising raw material prices, high financial costs and foreign-exchange volatility.
Coming up this week: China will announce July retail sales and updated manufacturing production data today, and Japan will release second-quarter GDP figures.
♦US retail sales are due tomorrow.
♦The Bank of Thailand's Monetary Policy Committee will meet on Wednesday, with no change expected in the 1.25% benchmark interest rate.
♦Euro zone inflation data will be released on Thursday.
Stocks to watch: Tisco Securities recommends stocks expected to show robust financial performance in Q2, among them AP, BANPU, BCH, BDMS, BEAUTY, BR, ERW, JWD, MEGA, ROJNA, RS, SEAFCO, TPIPP, UNIQ and WORK. Stocks with interim dividend payments include BPP, HANA, INTUCH, LH, QH, RATCH, SPCG, TCAP and TTW.
Apple Wealth Securities recommends accumulating banking stocks such as KBANK, SCB, BBL and KTB on expectations that their earnings will gradually recover until next year. It also recommends construction plays including STEC, CK and UNIQ because of expected infrastructure revenue.
In the property sector, Apple Wealth notes that LPN and AP offer dividend payments and limited downside risk. The broker also has buy recommendations on small and mid-cap stocks with growth potential, specifically LIT, BEAUTY, SYNEX, ERW, FSMART, ASEFA, ASAP and WORK.
Technical view: Bualuang Securities tips support at 1,540 with resistance at 1,570 points. Apple Wealth Securities pegs support at 1,550 and resistance at 1,580 points.