Recap: Global stock markets remained volatile on concerns over euro zone debt as political trouble emerged in Portugal, while traders also awaited more US economic cues including employment data on Friday. Thai shares also endured swings with property stocks at the centre of a selling spree after the Law Reform Commission warned that the government's draft law to borrow 2 trillion baht for its megaprojects might violate the Constitution.
The SET Index traded in the range of 1,430.88 and 1,463.98 points and closed at 1,441.33, down 0.7% from a week earlier, with low daily average turnover of 35.2 billion baht. Foreign investors were net sellers of 1.44 billion baht and local institutions sold 3.31 billion. Retail investors were net buyers of 4.31 billion baht and brokers bought 432.37 million.
Big movers: The apparel retailer Mc Group (MC) entered the SET on Thursday and closed the week at 15.60 baht, up 4% from its IPO price at 15 baht.
Banks and ICT stocks led in turnover. BAY gained 5.6% on the week to 37.50 baht on news of its planned acquisition by Bank of Tokyo-Mitsubishi UFJ. INTUCH shed 1.1% to 86 baht and KBANK lost 5% to 181.50 baht. Natural Park (N-PARK) led in volume, closing unchanged at 0.07 baht. Yong Thai (YCI), the top gainer, surged 66.7% to 10.50 baht. Italian Thai Development (ITD), the week's top loser, fell 13.2% to 4.34 baht.
Newsmakers: Japan's biggest bank, the Bank of Tokyo-Mitsubishi UFJ (BTMU), plans to buy as much as 75% of Thailand's' fifth-largest lender, Bank of Ayudhya (BAY), in a deal worth up to 177 billion baht. BTMU is buying the remaining 25.33% held by GE Capital in BAY and plans a voluntary tender offer for the remaining shares by December.
- Thai consumer confidence sagged for the third consecutive month in June on concerns over an economic slowdown in light of torpid exports, local political risks and the fragile world economy. The University of the Thai Chamber of Commerce (UTCC) said the index dropped to 81.6 points from 82.5 in May, 83.7 in April, 84.8 in March and 84 in February.
- The energy giant PTT will review its five-year investment plan to suit the changing global economy, said CFO Surong Bulakul.
- True Corporation has set a goal to slash its net debt-to-earnings ratio by more than half this year through the offering of an infrastructure fund and a series of recapitalisation programmes. The telecom conglomerate expects to book consolidated revenue of 75 billion baht this year, up 20% from last year.
- A CEO survey on the second-half economic outlook found that 57% of 75 listed companies in nine industries see the economy growing by less than 4.5% this year.
- Energy Minister Pongsak Raktapongpaisal will ask PTTEP to study the possibility of joint investment with Colombia in the latter's active oil fields. He is also urging parent PTT to spin off its gas transmission pipeline unit into a separate subsidiary.
Coming up this week: China will report inflation data tomorrow. Trade balance and loan-growth data are also due this week.
- The Monetary Policy Committee will meet on Wednesday.
- The US Federal Reserve on Thursday will release minutes of its June 18 meeting.
Stocks to watch: Tisco Securities recommends buying undervalued petrochemical stocks, especially PTTGC, on rising oil prices and strong Q2 earnings. It also recommends ADVANC.
- Thanachart Securities also recommends accumulating energy stocks such as PTTGC, PTG and TOP. Asia Plus recommends oil refinery and petrochemical stocks as they have bottomed out; its picks are TOP, BCP and PTTGC.
Technical views: Tisco Securities tips support at 1,400 to 1,410 and resistance at 1,450 to 1,460. Finansia Syrus Securities sees support at 1,425 and resistance at 1,470.
About the author
Writer: Nuntawun Polkuamdee & Darana Chudasri