Recap: The temporary extension of the US debt ceiling bolstered Asian stock markets last week. In Thailand, speculative buying on banks' third-quarter earnings and good results from some banks also helped stoke demand.
The SET Index traded in the range of 1,443.20 and 1,485.21 points and closed at 1,484.72, up 1.85% on turnover of 41.9 billion baht a day. Foreign investors was net buyers of 3.06 billion baht and local institutions 1.63 billion. Brokers were net sellers of 724 million and retail investors sold 1.46 billion baht more than they bought.
Big movers: TMB and Bangkok Land (BLAND) led in volume and were first and fifth respectively in trading value. TMB finished unchanged at 2.80 baht. BLAND was up 2.3% to 1.76 baht. Other high-turnover stocks were TRUE, rising 6.5% to 9.85 baht; KTB, gaining 2.9% to 21.20 baht; and PTT, falling 0.9% to 320 baht.
Siamgas and Petrochemicals (SGP) was last week's top gainer, up 17.2% to 13.60 baht. RHB OSK Securities (OSK) was the top loser, down 17.8% to 3.04 baht.
Newsmakers: China's GDP expanded 7.8% year-on-year in the third quarter, snapping two quarters of slow growth and lifting markets.
- President Obama signed legislation ending the US government shutdown and raising the debt ceiling. The government will run out of money again on Jan 15 and will reach its debt limit on Feb 7.
- The Bank of Thailand's Monetary Policy Committee kept its policy rate unchanged at 2.5%, and economists expect it to stand pat at the year's final meeting in November.
- The Thai economy is expected to bounce back to grow by at least 3% in the third quarter, helped by recovering exports.
- The Public Debt Management Office said debt in August increased by 74.27 billion baht from July to 5.3 trillion baht, or 44.63% of GDP.
- Prices of condominium units in Greater Bangkok have skyrocketed by 48% on average over the past four years, while those of townhouses and single houses rose by 36% and 25% respectively, according to a survey by SET-listed Sena Development Plc.
- Ramkhamhaeng Hospital and Synphaet have formed a 50:50 joint venture to invest 700 million baht in a new 100-bed hospital on Phetchaburi Road in Bangkok.
- Bangkok Bank warned its non-performing loans (NPLs) will keep rising slowly until the end of this year due to borrowers' deteriorating debt servicing ability amid the sluggish economy. However, the overall NPL ratio is expected to remain at 2.5% thanks to a growing lending portfolio.
- The National Broadcasting and Telecommunications Commission (NBTC) approved network rental rates for digital TV, with MCOT offering the highest and Thai PBS the lowest. Thai PBS will be charged 4.6 million baht a month for a standard-definition (SD) channel and 13.81 million baht for a high-definition (HD) channel.
- PTT Global Chemical Plc expects to sign a joint-venture agreement with Indonesia's national oil firm Pertamina next year for a US$4 billion chemical complex in Java.
- Shin Corp (INTUCH) aims to expand in digital TV as a channel manager rather than a broadcaster. It is bidding for a standard definition (SD) variety channel and an SD children's channel.
Coming up this week: US existing home sales and manufacturing production data for September are due today.
- Thai trade data for September is due Thursday, as is China's HSBC Flash Manufacturing PMI for October. The Thai Manufacturing Production Index is due Friday.
Stocks to watch: Asia Plus Securities recommends buying PYLON, STEC and BTS as they are expected to benefit from infrastructure spending. Finansia Syrus recommends KBANK, BBL and BJC. Maybank Kim Eng Securities also has a buy recommendation on KBANK.
Technical view: Krungsri Securities tips support at 1,440 and 1465; resistance at 1,500 and 1,520. Asia Plus sees support at 1,382 and 1,494 and resistance at 1,500.