Recap: The market last week moved sideways up, helped by positive international factors including improved US employment and Chinese manufacturing data. Locally, investors continue to worry about possible delays in 3G service after a widely criticised spectrum auction. However, sentiment has been generally upbeat ever since the Bank of Thailand cut interest rates on Oct 17 to help insulate the Thai economy from global weakness.
The SET index moved in a range of 1,274.9 and 1,311.39 points and closed at 1,306.6, up 1.9% from the week before, with daily average trade of 28.2 billion baht. Foreign investors were net sellers of 44.9 million baht and retail investors sold 4.9 billion. Brokers were net buyers of 515 million baht and local institutions 4.43 billion.
Big movers: PTT led the table in trading turnover, rising by 1.92% on the week to 313 baht. Bangkok Land (BLAND) was tops in volume, rising 2.57% on rumours about land sales on Srinakarin Road. Thoresen Thai Agencies (TTA), the top loser, was down 13.74% to 15.70 baht after announcing a capital increase of 708 million shares in a 1:1 ratio to existing shareholders. ICT shares were pressured by 3G auction uncertainty. Advanced Info Service (ADVANC) shed 6.1% to 186 baht, TRUE 9.4% to 4.80 baht and DTAC 5.4% to 82.75 baht.
Newsmakers: Unemployment in the euro zone hit a record in September, with nearly 150,000 people losing jobs as the debt crisis turns a slump into a recession. The sickest economy is Spain, where 25.8% of adults are out of work compared with 4.4% in Austria and 5.4% in Germany and the Netherlands.
- The World Bank approved an US$80 million grant for Myanmar to support its reform drive, resuming assistance to the former pariah nation after a quarter-century absence. The money is for infrastructure projects in poor villages in rural areas, it said.
- The Thai government confirmed the daily minimum wage will rise to 300 baht in 70 provinces as scheduled on Jan 1 despite calls from businesses for a delay.
- Thoresen Thai Agencies Plc (TTA) plans to raise 9.9 billion baht through a rights offering, mainly to finance expansion of its dry-bulk fleet. It operates 16 vessels and plans to buy 15 more.
- The National Broadcasting and Telecommunications Commission (NBTC) conceded it will have to delay granting 3G licences to the three bid winners. Three separate investigations are under way into whether the widely criticised auction or the NBTC violated any laws.
- The Bank of Thailand predicted growth will accelerate six months from now as world demand and domestic consumption improve. Exports will likely be stable in the next few months, it said. Export value increased to US$21 billion in September but decreased by 1% over the first nine months compared with the same period last year.
- The value of IPO shares on the Thai bourse will likely meet the target of 100 billion baht even though the nine-month figure fell slightly short of expectations. Fourteen IPOs including five property funds were launched in the period, with a combined market capitalisation of 60.9 billion baht. New IPOs will bring the number to 100 billion baht.
- CP Retail and Marketing Co, the maker of frozen foods and bakery items, will spend 20 billion baht from 2013-17 to open seven new food production and distribution centres nationwide.
- Eastern Star Real Estate expects to see a turnaround next year with revenue of 2.8 billion baht. It plans to develop three new condos worth a combined 5 billion baht next year.
- The SEC is seeking cooperation from everyone in the capital market for its drive to shun people and businesses involved in or suspected of corruption. That creates a dilemma for SET-listed BEC World, the operator of Channel 3, where the programmes of news anchor Sorayuth Suthassanachinda are huge moneymakers. The National Anti-Corruption Commission has accused Mr Sorayuth's production company and others of bilking MCOT out of 138 million baht six years ago. He has refused to step aside pending a resolution of his case, and BEC has said little about the affair.
- Consumer confidence in the overall economy for October rose to 68.1 points from 67.5 in September on the back of positive factors, said the University of the Thai Chamber of Commerce. Confidence in job opportunities rose to 69.8 points from 68.9, while confidence in future income went up to 95.3 from 94.8.
- More than 300,000 people have filed claims for the government's first-time car buyer tax rebate scheme, which will cost the government 30 billion baht.
Coming up this week: G20 finance ministers and central bank governors meet tomorrow, the same day as the US presidential election.
- The Chinese Communist Party begins its once-a-decade meeting to hand the reins of power to new leaders following months of turmoil.
Stocks to watch: Asia Plus Securities (ASP) recommends buying energy stocks, notably PTT and TOP, as they are underperforming. For now, it suggests investors hold shares at about 40% in their portfolios.
- Krungsri Securities recommends being overweight in banking, automobiles and transport; neutral in petrochemicals, building materials, real estate, infrastructure, ICT and commerce; and underweight in electronics. Its stock picks for the month are BECL, HMPRO, INTUCH, KBANK, PS, PTTGC, SAT and SCC.
Technical view: ASP sees support at 1,270 points and resistance at 1,314. Country Group Securities sees support at 1,300 points and resistance at 1,315.
About the author
Writer: Nuntawun Polkuamdee & Darana Chudasri