Recap: Most Asian markets advanced yesterday on optimism about US President-elect Joe Biden's much-anticipated $1.9-trillion fiscal stimulus plan, even as Wall Street retreated. European stocks dropped as investors took profits after solid gains. Tokyo also fell as investors locked in gains after the Nikkei rose for five straight trading days to a fresh 30-year high.
The SET index moved in a range of 1,513.48 and 1,561.66 points this week before closing yesterday at 1,519.13, down 1.1% from the previous week, in turnover averaging 97.86 billion baht daily.
Retail investors were net buyers of 8.4 billion baht, foreign investors purchased 2.08 billion and brokers bought 666.03 million baht worth of shares. Institutional investors were net sellers of 11.14 billion baht.
Newsmakers: The Trump administration yesterday blacklisted the Chinese smartphone manufacturer Xiaomi for alleged military links, along with the country's third-biggest oil company over its drilling in the South China Sea, part of a final push to ratchet up pressure on Beijing before President-elect Joe Biden takes office on Jan 20.
- Donald Trump became the first president in US history to be impeached twice, after the House of Representatives sanctioned him for inciting the deadly Capitol riot of Jan 6. But a trial in the Senate is not expected to start until after Mr Biden takes office.
- Google-owned YouTube on Tuesday temporarily suspended President Donald Trump's channel and removed a video for violating its policy against inciting violence, joining other social media platforms in banning his accounts after last week's Capitol riot.
- Twitter chief Jack Dorsey backed the messaging platform's ban of US President Donald Trump, but said Wednesday it sets a "dangerous" precedent and represents a failure to promote healthy conversation on the social network.
- Malaysia's king on Tuesday declared a nationwide state of emergency to fight a surge in coronavirus cases that threatens to overwhelm the country's healthcare system.
- Malaysia, which is negotiating supplies of a Covid vaccine with China's Sinovac Biotech, will only go ahead with procurement if it satisfies the safety and efficacy standards of local regulators, a minister said on Wednesday.
- Indonesia began its coronavirus vaccination drive on Wednesday, with President Joko Widodo receiving his first shot of a Chinese-produced vaccine.
- Palm oil prices are expected to have their best annual performance in a decade, helped by La Nina-linked flooding and shrinking inventories in Malaysia. Benchmark futures for the oil will average 3,200 ringgit a tonne in 2021, versus 2,700 ringgit last year, according to a Bloomberg survey of industry players.
- The world's largest platinum miner, South Africa-based Sibanye Stillwater Ltd, says the price of the metal could climb more than 80% over the next four to five years as the global economy recovers and supply dwindles. Platinum has almost doubled from an 18-year low in March.
- French Finance Minister Bruno Le Maire has reaffirmed the country's opposition to the retailer Carrefour being taken over by the Canadian retail giant Couche-Tard, citing "food security" scorns among others.
- PTT Plc has priced the IPO shares of its retail unit PTT Oil and Retail (OR) between 16 and 18 baht, with a goal to raise up to 54 billion baht in what is expected to be among the country's largest listings this year. Shares will be offered to retail investors from Jan 24 to Feb 2 and institutions from Feb 3-5.
- Thailand's GDP growth is forecast at 2.5% this year, assuming the government maintains stringent measures to contain new Covid infections until February, says Krungthai Compass.
- Informal workers must have monetary deposits in a bank account to be eligible for a new financial relief payment of 3,500 baht a month for two months, says a Finance Ministry source.
- State-owned banks expect around 2 million debtors to participate in the latest financial relief measures rolled out to alleviate the impact of the pandemic.
- The Federation of Thai Industries (FTI) expects the US decision to impose anti-dumping duties (AD) on car tyres exported from Thailand to seriously affect Thai industries, including the automotive and agricultural sectors, as Thailand may end up missing export opportunities in the global market, says FTI vice-chairman Kriangkrai Tiannukul.
- The National Communicable Diseases Committee (NCDC) has formed a sub-committee and tasked it with overseeing the rollout of the government's free Covid-19 vaccinations.
- Foreign investors are expected to keep steering clear of the Thai bond market in 2021 after two years of selling due to low returns, while the country's benchmark interest rate is likely to stay at 0.5% all year, says the Thai Bond Market Association.
- Thailand's recent amendments to the eligibility criteria for regulatory capital will enable domestic banks to distribute dividends or pay interest without approval from the central bank, says S&P Global Ratings.
- The Finance Ministry has allowed employers and employees to extend a pause in provident fund contributions for another six months to ease financial hardship caused by the pandemic.
- Saying that the pandemic has caused as many as 80% of inbound travel companies to close, the Association of Thai Travel Agents (Atta) is asking the government to allow vaccinated visitors to visit the country without quarantine in the third quarter to boost demand.
- Despite a new wave of Covid cases in Thailand, Chinese buyers are prepared to purchase Thai properties in the second half of 2021, driven by expectations of vaccine effectiveness and the reopening of inbound tourism, says the regional real estate marketing firm Juwai IQI Group.
- Thailand's exports are recovering and expected to tally growth of 3.6% this year to US$237 billion if a Covid-19 vaccine becomes effective and sufficient as hoped, says the University of the Thai Chamber of Commerce (UTCC).
- The new wave of the pandemic is sparking demand for computers and accessories, pushing sales by 45-70% above normal, as more people work from home and learn online, say major IT retailers.
- The government has retained its price controls on 55 products and service items including medical face masks.
Coming up : China will release fourth-quarter GDP data and December industrial production figures on Monday. Germany will release December inflation data and January economic sentiment on Tuesday.
- China will announce the 1-year prime lending rate on Wednesday, and Britain, Canada and the euro zone will release December inflation data. The same day, Canada's central bank will announce its policy rate decision, Australia will release January consumer confidence, and Japan will release December trade figures.
- Japan will release December inflation data on Thursday, and the European Central Bank will hold a briefing after its policy meeting the same day. Thailand will release December trade data on Friday, Britain will release January consumer confidence and December retail sales. Germany will release January manufacturing PMI.
Stocks to watch: Capital Nomura Securities recommends high-dividend stocks expected to offer more than 3.7% yields in the March-May dividend season. Its picks are MC, AP, KKP, SC, SPCG, THANI, HTC, PTT, SNC and TISCO.
The brokerage says central bank signals about a possible cut in interest rates in the first quarter are positive for consumer finance, property and high-dividend stocks. It recommends accumulating SAWAD, MTC, AP, SPALI, LH, ADVANC and INTUCH.
DBS Vickers Securities recommends stocks with strong fundamentals for Q1, including ADVANC, KBANK, PTT, PTTEP, RJH, SCC, SCGP, STGT, TQM and UTP.
Technical view: Maybank Kim Eng Securities sees support at 1,500 points and resistance at 1,560. DBS Vickers sees support at 1,500 and resistance at 1,580.
