Recap: European bourses slipped yesterday but Asian shares rose as news of a US GDP contraction was offset by the Federal Reserve's pledge of unlimited quantitative easing and stimulus hopes from the European Central Bank. The market also cheered the results of a clinical trial of Remdesivir, which top US medical officials said showed a "clear-cut" effect in helping Covid-19 patients recover.
The SET index moved in a range of 1,258.45 and 1,301.66 points, where it ended the holiday-shortened week yesterday, up 3.4% from the previous week, in turnover averaging 59.61 billion baht a day.
Institutional investors were net buyers of 4.8 billion baht and brokerage firm purchased 989.88 million worth of shares. On the other hand, foreign investors were net sellers of 3.1 billion baht and retail investors offloaded 2.7 billion.
Newsmakers: The US economy suffered its most severe contraction in more than a decade in the first quarter, with GDP shrinking 4.8% year-on-year, as the coronavirus crippled economic activity.
- France will make face masks compulsory on public transport and in secondary schools when it starts easing its coronavirus lockdown on 11. Germany has extended a warning against global travel until June 14.
- US President Donald Trump suggested on Monday that he may seek damages from China over the coronavirus outbreak.
- North Korean leader Kim Jong-un is "alive and well", says a top security adviser to South Korean President Moon Jae-in, downplaying rumours over the health of the young dictator, who has not been seen in public since April 12.
- The postponed Tokyo 2020 Olympics will have to be cancelled if the coronavirus pandemic is not brought under control by next year, the organising committee's president said.
- The world's biggest smartphone maker, Samsung Electronics, reported a 3% drop in first-quarter net profits on Wednesday, as the pandemic dampened consumer demand.
- Thailand's aviation regulator has extended the ban on incoming passenger flights for another month, until May 31, citing deepening worries about the Covid-19 pandemic.
- Thai Airways International will borrow money, reported to be 58 billion baht, as part of its coronavirus survival plan and will keep its state enterprise status. The Finance Ministry will guarantee the loan by waiving a rule that denies guarantees to chronically money-losing state firms. Reuters said an internal document showed THAI would raise 77 billion baht by issuing new shares around November, and use the proceeds to pay off the loan plus interest and maintain liquidity.
- The economy could contract by as much as 10% this year in a worst-case scenario in which a second coronavirus outbreak occurs after the government lifts lockdown measures, says Supavud Saicheua, adviser to Kiatnakin Phatra Financial Group.
- The manufacturing production index (MPI) declined for the 11th straight month in March, falling 11.25% from a year earlier, hurt by lower production of cars, sugar and petroleum.
- The US benchmark oil price could fall below zero for a second time this year, as global oil storage is almost full, says Manoon Siriwan, an independent energy analyst. Prices have advanced this week on signs that fuel consumption is starting to recover in the some major economies.
- New business registrations in Thailand fell 12% year-on-year in March to 6,066. On a monthly basis, registrations fell 5% from 6,407 in February.
- Media advertising spending is expected to drop 15% to 77 billion baht this year as the coronavirus outbreak causes brands to tighten their budgets amid a weak economy, says the research firm Media Intelligence.
- The Tourism and Sports Ministry is floating an idea to provide long-stay packages to "quality" foreign tourists who are seeking disease-free destinations.
- Deputy PM and Commerce Minister Jurin Laksanawisit has withdrawn a proposal to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as the cabinet is said to be divided the issue. Mr Jurin's chief coalition rival, Deputy PM Anutin Charnvirakul, is said to side with activists who say the pact will have an adverse impact on food security and access to medicine.
- Some 16 million out of the 24 million registrants for a monthly stipend of 5,000 baht have been approved and are awaiting the outcome of the final consideration process after the application period closed.
- The Thailand Futures Exchange (TFEX) reported its most volatile first quarter in more than 14 years, with volume of more than 540,000 contracts per day.
- Nine commercial banks have sought liquidity support worth a total of 56 billion baht for their purchases of mutual fund units through the Bank of Thailand's Mutual Fund Liquidity Facility (MFLF) as of April 24, according to central bank data.
- SET-listed Bumrungrad Hospital Plc (BH) reported a double-digit drop in first-quarter revenue and net profit due to the "highly disruptive impact" of the Covid-19 pandemic.
- SET-listed Nava Nakorn Plc (NNCL), an industrial estate developer, expects the Covid-19 outbreak to cause more factories to leave China and relocate to Thailand and Asean, a trend that has accelerated over the past few years because of the US-China trade war.
- SET-listed Siam Cement Group (SCG), the country's largest industrial conglomerate, has lowered its revenue forecast and investment budget for this year because of the pandemic.
- The SET-listed solar farm operator SPCG Plc says it will invest 2.73 billion baht to develop the Ukujima "mega-solar project" with a total capacity of 480 megawatts in Japan.
Coming up: China will release the Caixin manufacturing PMI for April on Monday. The Reserve Bank of Australia will announce its interest rate decision on Tuesday, with Canada and the US releasing March trade data the same day.
- The Bank of England will announce its interest rate decision on Thursday and Australia will announce March trade figures. Due Friday are UK consumer confidence, US April non-farm payrolls and German trade data for March.
Stocks to watch: Capital Nomura Securities believes the MSCI rebalancing, which will be announced on May 12 and will take effect from May 29, will add AWC, TOA and KTC, while BANPU is expected to be withdrawn. The brokerage's portfolio advice for May is to accumulate stocks such as ADVANC, BAM, BEM, CPALL and CPF.
DBS Vickers Securities Thailand says good fundamental stocks for the second quarter include BJC, CPALL, DIF and GPSC.
Technical view: DBS Vickers sees support at 1,200 points and resistance at 1,320. Maybank Kim Eng Securities Thailand sees support at 1,275 and resistance at 1,320.
