Recap: Emerging market stocks and currencies traded sideways yesterday as investors waited to see how the US would respond to China's security law on Hong Kong. Most Asean bourses advanced on news of more easing of mobility restrictions in the Philippines, Thailand and Indonesia.
The SET index moved in a range of 1,302.12 and 1,358.60 points this week before closing at 1,342.85, up 3% from the previous week, in heavy turnover averaging 77.69 billion baht a day.
Institutional investors were net buyers of 8.7 billion baht, foreign investors bought 1.5 billion and brokerage firms purchased 341.3 million worth of shares. Retail investors were net sellers of 10.5 billion baht.
Newsmakers: China officially has the power to quash unrest in Hong Kong, after legislators on Thursday approved a plan to suppress subversion, secession, terrorism and other acts that might threaten national security in the territory. Early signals from Chinese authorities point to a crackdown once the law takes effect, expected by September.
- China said relations with the United States were "on the brink of a new Cold War", fuelled in part by tensions over the coronavirus pandemic. Tensions have been exacerbated further by the passage of the Hong Kong security law, which might cause Washington to remove the territory's special trade treatment.
- US President Donald Trump has issued an executive order, certain to be challenged in court, that removes some legal protections for online platforms. The order follows a move by Twitter to attach cautionary labels to some of the president's more incendiary tweets.
- Huawei executive Meng Wanzhou suffered a legal setback on Wednesday when a Canadian judge ruled that proceedings to extradite her to the United States, where she faces charges related to sanctions evasion, can go ahead.
- The EU unveiled a proposed €750-billion recovery plan Wednesday to get the continent back on its feet, as Latin America began to outpace Europe and the US in the number of daily Covid-19 infections.
- Singapore's embattled economy could shrink by as much as 7% this year, which would be the worst reading since independence, as the pandemic has throttled the key export sector.
- Airlines' plans to resume domestic travel in India were in disarray after some states restricted flight numbers just hours before departure. Air India reportedly had to cancel 92 flights scheduled between May 28 and 31 because of unavailable slots at airports, along with stringent quarantine rules.
- Latin America's largest airline, Chile-based Latam, has filed for bankruptcy in the US.
- Stanley Ho, the Hong Kong-born tycoon who made billions transforming neighbouring Macau from a sleepy Portuguese outpost into the world's biggest gambling hub, died on Tuesday at age 98.
- The Thai government expects to end the state of emergency on July 1 and lift all restrictions imposed to curb the spread of coronavirus. These would include interprovincial and international travel, as well as the end of the night curfew. Most remaining business restrictions will be lifted on June 1.
- Thailand may lose up to 14.4 million jobs in the second and third quarters, largely because of the virus outbreak and drought, says the National Economic and Social Development Council.
- The economy could take at least two years to return to pre-pandemic growth levels and this year's nadir could be delayed in the event that a second-wave outbreak occurs, says Standard Chartered Bank Thai.
- Thai Airways International has appointed five people, including former president Piyasvasti Amranand, to prepare its rehabilitation plan under bankruptcy court supervision. Along with EY Corporate Advisory Services, they will have "the authority and duty in managing the business and assets of the company", the carrier told the SET.
- The Tourism and Sports Ministry wants authorities to lift the domestic tourism lockdown starting in June, as the industry has prepared new national safety and health standards with almost 1,500 operators applying for certification.
- The cabinet will set up a committee to consider whether Thailand should seek membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, after widespread opposition last month amid concerns joining the trade pact may harm the agriculture industry.
- Bank of Thailand governor Veerathai Santiprabhob will not apply for a second term after his five-year tenure is expires on Sept 30, citing family reasons.
- Ten SET-listed banks reported loan growth during the first four months of the year, thanks to brisk wholesale lending and an additional credit line provided under the debt relief scheme, even as the economy reeled from the pandemic.
- The Excise Department has turned down car makers' proposal for a 50% tax cut for fear that prices of all vehicles will decline further if such a reduction is approved.
- Global demand for protective gloves is soaring in light of the coronavirus pandemic, driving Thailand's rubber glove exports to surge 16% year-on-year in the first four months of 2020.
- Thailand's manufacturing production index in April stood at 79.04, the lowest level since November 2011.
- New business registrations fell again in April, with figures down 33% year-on-year from the same month last year after a 12% drop in March.
- Advanced Info Service (ADVANC), the country's top mobile operator, has insisted no personal information from customers was leaked during a scheduled test earlier this month -- only non-critical information was exposed online, as reported by foreign media.
- SET-listed developer Raimon Land Plc (RML) has revised down its 2020 revenue target by 25-35%, postponed the opening of Hotel Kitch from June to the end of the year and delayed the launch of a new condominium project until 2021.
- The National Broadcasting and Telecommunications Commission board on Wednesday failed to decide how much the state-owned broadcaster MCOT would be compensated after its 2600-megahertz spectrum range was recalled for 5G licence auction in February.
Coming up: China will announce May Caixin manufacturing PMI on Monday and Thailand will report May inflation data along with business confidence and manufacturing PMI. The Reserve Bank of Australia will announce its interest rate decision on Tuesday.
- The Bank of Canada will announce its interest rate decision on Wednesday and Australia will release first-quarter GDP data. On Thursday, Australia, Canada and the US will announce April trade figures, with Thailand reporting May consumer confidence the same day.
- Britain will announce May consumer confidence on Friday and the US will announce May non-farm payrolls.
Stocks to watch: Krungsri Securities recommends stocks benefiting from measures to stimulate domestic tourism once lockdown measures are eased further. Suggested picks are MINT, CENTEL, ERW and AOT. Firms expected to report good Q2 net profits are CKP, TASCO, STA, RS and EPG.
DBS Vickers Securities Thailand recommends defensive stocks such as ADVANC, TISCO and LH. High-growth stocks expected to recover quickly include MTC, DELTA and TASCO. Retail stocks benefiting from the 5,000-baht income-support scheme are CPALL and HMPRO.
Technical view: Maybank Kim Eng Securities Thailand sees support at 1,300 points and resistance at 1,360. DBS Vickers sees support at 1,280 and resistance at 1,360.