Recap: Global shares rebounded yesterday but still headed for a weekly loss as concerns over aggressive global interest-rate increases and geopolitical risks prevail.
The SET index moved in a range of 1,674.81 and 1,708.89 points this week before closing yesterday at 1,686.00, down 0.9% from the previous week, in daily turnover averaging 75.59 billion baht.
Retail investors were net buyers of 7.22 billion baht, foreign investors bought 1.86 billion baht and brokers purchased 711.88 million baht worth of shares. Institutional investors were net sellers of 9.79 billion baht worth of shares.
Newsmakers: The White House announced sanctions Wednesday targeting Russia's top public and private banks and two daughters of Vladimir Putin, adding pressure on the country's economy and its elite over the invasion of Ukraine.
- Canada's environment minister on Wednesday approved a controversial offshore oil project in Newfoundland, expected to produce 300 million barrels of oil over 30 years -- and to set back efforts to curb climate change.
- Oil prices have lost about 3% on the week as consuming countries have agreed to release 240 million barrels from emergency reserves to help offset disrupted Russian supply.
- Elon Musk is now on the board of Twitter after acquiring a 9.2% stake in the social media network. The move sent the stock soaring and ignited speculation that he will seek an active role in its operations.
- Amazon.com is stepping up plans for a fleet of internet satellites that would compete with a service operated by Elon Musk's SpaceX, buying dozens of launches from three rocket companies.
- Thailand's economy is expected to grow by 2.9% this year, down from a previous prediction of 3.9%, the World Bank said on Tuesday.
- The Joint Standing Committee on Commerce, Industry and Banking continues to cut its GDP forecast, with maximum growth down to 4%, while inflation is likely to soar to 5.5% for the year, based on the unsettled Russia-Ukraine war and Covid outbreaks in China.
- The consumer price index jumped by a higher-than-expected 5.7% in March from a year earlier, the fastest pace in 13 years. The Commerce Ministry has now raised its forecast for headline inflation to 4-5% this year from a previous estimate of 0.7% to 2.4%.
- The government has not overspent its budget and is trying to reduce the budget deficit to maintain fiscal stability, says Finance Minister Arkhom Termpittayapaisith.
- The Bank for Agriculture and Agricultural Cooperatives (BAAC) saw a surge in non-performing loans to almost 7% of outstanding credit in its last accounting year as a result of the pandemic and natural disasters, says president Tanaratt Ngamvalairatt.
- Thailand's exports are forecast to grow by 5% this year, at the low end of a previous forecast of 5-8% growth, thanks to uncertainty over the Russia-Ukraine war, a shortage of raw materials and volatility in their prices, as well as higher labour costs, says a group of Thai shippers.
- Domestic tourism receipts for the first quarter this year are expected to tally 135 billion baht from 29.7 million trips, but the Tourism Authority of Thailand (TAT) is still aiming for 656 billion baht in revenue from the segment for the entire year.
- Authorities propose to scrap the mandatory RT-PCR for foreign visitors on May 1 -- pending a final review after Songkran -- and replace it with a simple antigen test. The pre-travel PCR test was scrapped on April 1 and arrivals via Suvarnabhumi airport have since picked up to more than 11,000 per day.
- The TAT aims to attract 1.75 million tourists from short-haul markets this year as more countries reopen, and will partner with Thai AirAsia to bring in at least 18,000 package tours over the next few months.
- The Board of Investment (BoI) approved enhanced incentives and conditions for investments in EV charging stations to help accelerate the growth of the domestic EV market.
- Shareholders of True Corp and DTAC have approved the planned merger of the two firms' mobile businesses. Market leader AIS has filed a complaint with the National Broadcasting and Telecommunications Commission, whose board is still debating whether it has the authority to do anything.
Coming up: China will release March consumer and producer prices on Monday. Britain will release February manufacturing production and trade figures on Monday, followed by employment data on Tuesday. Germany and the euro zone will release April ZEW economic sentiment and the US will release March consumer prices.
- The US will release March federal budget balance and producer prices on Wednesday. The Reserve Bank of New Zealand and Bank of Canada will announce interest rate decisions, and Britain will release March consumer prices.
- The European Central Bank will hold a policy meeting on Thursday, and Australia will release March employment data. On Friday, the US will release March industrial production.
Stocks to watch: UOB Kay Hian Securities recommends accumulating stocks expected to see profit increases in the second quarter such as BBL, TIDLOR, CPN, CENTEL, BJC, OSP, TRUE, ONEE, IVL and TOP. It recommends PTTEP and BANPU for speculative trading and LH, SPALI, AP, SC and ASW for high dividends.
- SCB Securities recommends stocks with good fundamentals and potential for long-term growth with laggard prices, including AOT, BDMS, CRC, GULF and PTTEP.
Technical view: UOB Kay Hian Securities sees support at 1,685 points and resistance at 1,720. Asia Plus Securities sees support at 1,660 and resistance at 1,750.
