Global shares stall amid China growth worries

Global shares stall amid China growth worries

Recap: Global shares struggled near record highs on Friday as concerns over slowing China growth and a resurgence of the pandemic in Europe stalled a widespread equity market rally.

The SET index moved in a range of 1,635.22 and 1,656.27 points this week before closing yesterday at 1645.06, up 0.68% from the previous week, in daily turnover averaging 83.75 billion baht.

Institutional investors were net buyers of 3 billion baht and brokerage firms bought 1.22 billion baht. Retail investors were net sellers of 2.23 billion baht and foreign investors offloaded 1.98 billion baht worth of shares.

Newsmakers: Stronger-than-expected retail sales data and earnings from big-box chains painted a heady picture of US consumers on Tuesday despite global supply chain snarls that have fuelled inflation and created shortages.

  • President Joe Biden is weighing his choices for the head of the US Federal Reserve. He could give a second term to Jerome Powell, a Republican who has won praise from officials in Biden's own Democratic administration, or choose Lael Brainard, favoured by progressive Democrats because he would be tougher on banking regulation.
  • Battered by critics and dire opinion polls, President Biden signed into law the biggest US infrastructure revamp in more than half a century at a rare bipartisan celebration in the White House on Monday.
  • Japanese and US officials held top-level trade talks in Tokyo on Monday after Washington said it was ready to discuss reducing steel and aluminium tariffs imposed under former president Donald Trump.
  • Japan's economy shrank by 3% year-on-year, far more than expected, in the third quarter as a surge in virus cases hit spending and supply chain issues hampered business.
  • Oil prices steadied yesterday following a day of wild swings prompted by the prospect of coordinated action by major economies to release official crude reserves to push down their citizens' fuel costs.
  • General Motors took a leap on Wednesday towards its much-touted "all-EV" future when it officially opened its first electric pickup truck factory in Detroit.
  • The Indian mobile payments giant Paytm lost a quarter of its value on its market debut Thursday, after raising $2.5 billion in the country's biggest ever IPO, as traders questioned whether the loss-making firm would ever turn a profit.
  • Nearly a third of total job losses in five Asian countries were linked to tourism, with an estimated 1.6 million jobs lost, according to the International Labour Organization.
  • Singapore Airlines expects to resume Boeing 737 Max flights before the end of the year in a positive sign for the model's return in Asia.
  • The US Internal Revenue Service said it seized $3.5 billion worth of cryptocurrencies during fiscal 2021, accounting for 93% of all assets seized in cases of tax fraud and related crimes.
  • The Thai economy is expected to recover only in the second half of next year despite the opening up of tourism as people are concerned about a possible new Covid wave, a university survey showed on Tuesday.
  • The economy contracted 0.3% in the third quarter, reflecting the impact of Covid curbs, compared with 7.6% year-on-year growth in the second quarter. The National Economic and Social Development Council (NESDC) now expects full-year growth of 1.2% this year, recovering from a 6.1% contraction in 2020.
  • The number of poor people in Thailand is expected to increase to 15 million next year from almost 14 million now because of the impact of the prolonged Covid outbreak, said Deputy Finance Minister Santi Promphat.
  • Thailand's exports rose 17.3% in October from a year earlier while imports jumped 34.6%, according to Commerce Ministry data on Thursday.
  • Car exports in October grew by 14.3% year-on-year -- the highest in seven months -- to 81,577 units, impressing automakers with a chance to see exports rise to 870,000 units beyond the 2021 target, says the Federation of Thai Industries (FTI).
  • Domestic car sales declined 13% in October from a year earlier to 64,462 vehicles, the FTI said.
  • The first batch of government savings bonds for fiscal 2022 worth 10 billion baht were quickly sold out on the first day of offering on Nov 15, according to the Public Debt Management Office.
  • Thailand's economic engines may not be as strong as before and the important tourism sector may take longer to normalise, central bank governor Sethaput Suthiwartnarueput said on Thursday.
  • Fewer hotel business operators have been joining the Bank of Thailand's asset warehousing programme -- a debt relief measure -- due to an improvement in domestic tourism following the country's reopening, said a central bank executive.
  • The Real Estate Information Center (REIC) has moved forward its target for a housing market recovery to pre-Covid levels to 2023, supported by an easing of lending rules and a reopening to foreign visitors.
  • Thailand's digital content industry is expected to reach 49.6 billion baht in market value this year, up 26% year-on-year, buoyed crucially by strong growth in the gaming segment, according to the Digital Economy Promotion Agency (Depa).
  • Thailand's internet economy is expected to be worth 984 billion baht in 2021, up 51% year-on-year, buoyed by a surge in e-commerce, according to the latest e-Conomy SEA 2021 report.
  • Struggling Thai Airways International (THAI) generated a net profit of 51.1 billion baht in the first nine months of the year, almost all of it from asset sales and cost cuts, said Piyasvasti Amranand, a member of its debt rehabilitation panel.
  • Thai AirAsia (TAA) has announced mass layoffs and extended furloughs after struggling with the impact of the pandemic, despite the country's reopening on Nov 1.

Coming up: The People's Bank of China will update the prime loan rate on Monday. Britain will release October composite, manufacturing and services PMI and the US will release October existing home sales. New Zealand will release third-quarter retail sales on Tuesday. The US, the euro zone and Germany will release November manufacturing PMI.

  • The Reserve Bank of New Zealand will release an interest rate decision on Wednesday. Germany will release the November business climate index. The US will release third-quarter GDP, October new home sales and core durable goods orders.
  • New Zealand will release October trade figures and Germany will release third-quarter GDP on Thursday. Australia will release October retail sales on Friday.

Stocks to watch: Capital Nomura Securities recommends energy stocks that have outperformed the SET such as GPSC and GULF, hospital stocks BMDS and BH, telecoms stock ADVANC, and export-oriented firms KCE, HANA and TU.

  • Asia Plus Securities recommends stocks expected to perform in the fourth quarter with lagging prices and unique supporting factors such as CPALL, DOHOME and TASCO.

Technical view: Asia Plus sees support at 1,630 points and resistance at 1,670. Phillip Securities sees support at 1,640 and resistance at 1,670.

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