MARKET MONITOR

Recap: The Thai market moved sideways down in line with global equities. Positive signals about Greece were unable to lead the index higher as investors turned their attention to the "fiscal cliff" looming in the US now that the dust has settled from the presidential election.

The SET Index moved in a range of 1,285.77 and 1,306.60 points and closed at 1,290.83, down 1.21% from the week before. Foreign investors were net sellers of 1.28 billion baht and brokers 1.32 billion. Retail investors bought 1.46 billion baht and local institutions 1.14 billion.

Big movers: PTT led in value, gaining 0.96% on the week to 316 baht, and PTTGC rose 2.08% to 61.50 baht. Bangkok Land (BLAND) led in volume, down 2.22% to 1.32 baht.

BTS rose before the company asked the SET to halt trade on Friday pending the announcement of its plan to raise capital via a new infrastructure fund. The shares rose 12% on the week to 6.55 baht.

The warehouse company WHA Corporation (WHA) made a strong debut, closing at 20.50 baht, up 54.7% from its IPO price of 13.25 baht.

Newsmakers: US stocks sank for two days after President Obama's re-election victory. Traders said Wall Street was reacting more to the spectre of a gruelling new battle between Democrats and Republicans over the deficit and the looming "fiscal cliff" of spending cuts and tax hikes.

- China opened its 18th Communist Party Congress, at which Xi Jinping this week will assume the party leadership from Hu Jintao, a process in which the Chinese people have no say at all.

- The governments of Thailand and Myanmar pledged to complete a master plan for the Dawei megaproject within three months and begin infrastructure investment next April. The Thai government says no taxpayers' money will be spent to benefit Dawei's lead contractor, Italian-Thai Development Plc.

- Consumer confidence in October rose to 77.8 points from 77, the first rise in four months, as consumers' concerns eased regarding flooding and global economic prospects.

- Krung Thai Bank increased Energy Earth's credit line by 2.5 billion baht to 3.08 billion baht in order to acquire five coal mines by 2017.

- The coal miner Banpu plans to appeal the Civil Court verdict against it by early next year and says the ruling has had no impact on loans and construction. The court in September ordered Banpu to pay more than 31 billion baht in damages to Siva Nganthavee for "deception" after the latter was frozen out of a venture to develop the Hongsa power project in Laos.

- Thai Union Frozen Products plans to increase its capital expenditure the next two years to a combined 12 billion baht, mainly to expand capacity and upgrade production facilities in Samut Sakhon.

- Thanachart Bank expects to see its tier-1 capital rise by two percentage points after the 17.5-billion-baht sale of wholly owned subsidiary Thanachart Life Assurance Co to Prudential Life Assurance (Thailand). The bank as a result may have no need to raise more capital.

- Asian Property Development plans to launch 17 or 18 residential projects worth 20 billion baht combined next year, which it hopes will boost annual presales and revenue growth to at least 10%.

- Charoen Pokphand Foods has revised up its five-year investment budget through 2016 by 50% to 75 billion baht, as it sees potential acquisition targets in Asia.

- Bangchak Petroleum plans a second refinery outside Bangkok, raising capacity to 300,000 barrels per day at a cost of 100 billion baht. It could take 8 years for the refinery to be operational.

- PTT expects liquefied natural gas (LNG) imports to more than treble to 3.5 million tonnes by 2014 as domestic demand increases.

- Siam Makro has set up Vina Siam Food Co (VSF) as a trading and distribution business in Vietnam, in its first overseas expansion amid fierce competition at home.

- Real Estate Capital Asia Partners (Recap), the Singaporean property investment company, will spend 3-4 billion baht next year to acquire two Thai shopping complexes in a bid to expect its retail portfolio.

Coming up this week: Japan today will report third-quarter GDP and industrial data for September. Euro zone ministers meet today to discuss new funds for Greece, which has passed more austerity measures.

- France reports its unemployment rate and Germany its economic confidence index tomorrow.

Stocks to watch: Asia Plus Securities recommends holding 40% of the portfolio in cash amid uncertainties about the US "fiscal cliff". If US tax increases go ahead, an estimated $500-600 billion in liquidity could disappear. Locally, it recommends selective buys of low P/E stocks with growth potential. TK and PREB are top picks.

- Phillip Securities recommends selective buys in small- and mid-cap stocks, and sees property stocks gaining from low interest rates and an industry recovery. Its picks are AP and LPN.

Technical view: ASP sees support at 1,260 and resistance at 1,300. Phillip Securities sees support at 1,270 and resistance at 1,310.