Recap: The Stock Exchange of Thailand (SET) continued to trade heavily above 50 billion baht a day (compared with an average of about 32 billion in 2012) for the third straight week since the year begun.
The SET Index moved sideways up in the range between 1,410.10 and 1,432.21 points and closed at 1,434.44, up 1.6% from the previous week, in a heavy daily average trade worth of 58.18 billion baht.
Foreign investors remained net buyers of 5.24 billion baht and are net buyers of 10.5 billion this year. Local institutions were net buyers of 1.64 billion baht. Brokers were net sellers of 2.63 billion and retail investors sold 4.43 billion.
Big movers: Stocks outside the SET100 moved dramatically and the SET warned retail investors to trade with caution. The list of stocks, including many highly speculative favourites, requiring cash payment upfront is getting longer.
Bangkok Land (BLAND) led in trading volume and value, rising 28.3% from the previous week to close at 1.81 baht. BTS Group Holdings (BTS) gained 4.2% to 7.35 baht, and Beauty Community (BEAUTY) rose 37.6% t 25.75 baht.
Newsmakers: The SET reported a significant milestone, saying it surpassed the Singapore Exchange last year in average daily turnover in US dollar terms: $1.04 billion compared with $1.025 billion. Market officials also noted that internet trading accounted for more than 50% of total retail trading last year.
- The SET hopes to see transactions through the new high-frequency trading (HFT) system rise to 10% of total volume this year from 7.7% last year. It also wants to attract 96,000 new trading accounts to the SET and 22,000 to the MAI. The goal for market capitalisation from new stocks this year is 120 billion baht.
- The International Monetary Fund said it would release 3.2 billion euros ($4.3 billion) in aid to Greece that had been frozen for months amid fears about the country's ability to surmount its debt crisis.
- JPMorgan Chase said Q4 profit surged 53% to $5.7 billion, capping a third straight year of record income. Full-year profit at the largest IS bank was $21.3 billion.
- The Bank of Thailand said it would not amend the single lending limit rule that restricts combined lending to a single client or companies under the same group to no more than 25% of a lender's tier-1 capital base. The rule was intended to prevent a repeat of the 1997 financial crisis.
- The Commerce Ministry is forecasting Thai export growth of 9.38% year-on-year for the first six months of 2013. Deputy permanent secretary Nanthawan Sakuntanak forecast exports to China would expand by 9.98%, to India 10.3%, and to Asean 6.8%.
- The Thai bond market should remain active this year on foreign inflows, the government's demand for funds and rising interest rates, says the Thai Bond Market Association. It expects the government to issue 717 billion baht in bonds and state enterprises to issue 242 billion, with corporate bonds totalling approximately 350 billion.
- Banpu, one of Asean's largest coal miners, has begun to fight back in the legal battle involving its power-plant joint venture in Laos, demanding 4 billion baht in damages. The Thai civil court last September ordered Banpu to pay 31.3 billion baht to Siva Nganthavee and his companies for squeezing him out of the venture.
- Siam Cement has set aside a budget of 40 billion baht this year for domestic investments and overseas takeovers, CEO Kan Trakulhoon said last week.
- PTT Group plans to invest 1 trillion baht under its five-year investment plan through 2017, says chief executive Pailin Chuchottaworn. More than half of the amount will cover upstream to downstream energy businesses overseas. The amount does not increase potential mergers and acquisitions, he said.
- WHA Corp, a listed warehouse operator, aims to raise revenue by more than 30% this year from 300,000 square metres in new space.
- Cho Thavee Dollasein (CHO), a manufacturer of trailers and truck bodies, plans to list on the MAI in the second quarter, issuing 200 million new shares with par value at 0.25 baht each. Asset Pro Management is the financial adviser.
- Premier Product Plc, the building and materials distributor, plans to list on the SET next month, issuing 82.5 million new shares at one baht par value each. Funds raised will be used in solar farm projects.
- Amata Corp, the country's leading industrial estate developer, plans to list its holding company, AMATAV, which invests in its projects in Vietnam, on the SET by the next quarter. SCB Securities and OSK Securities (Thailand) are co-lead underwriters. The company will issue 139 million new shares. AMATAV will be the first stock under the holding company sector.
Coming up this week: The Bank of Japan opens a two-day meeting today, amid expectations that it may announce more stimulus measures.
- The International Monetary Fund (IMF) will release its latest economic forecasts on Wednesday.
Stocks to watch: Finansia Syrus Securities notes that the baht is the second best-performing currency in Asia this year (up 1.4% to date) behind the Malaysian ringgit (up 1.8%), compared with a regional average of 0.8%. A strong baht strength benefits importers such as TVO, BJC, HMPRO, THAI, AAV, BSBM, TSTH, SSI, ADVANC, DTAC, TRUE, AIT, JAS, and SAMTEL. It is negative for exporters like TUF,CPF, GFPT, CFRESH, TIPCO, KSL, STA, SITHAI, BGH, BCH, and THCOM. It is neutral for energy and petrochemicals. Sectors not sensitive to currency change are housing, industrial estates, and construction.
Technical view: Asia Plus Securities sees support at 1,390 points and resistance at 1,445 points this week.