Recap: Trade friction between the US and China continues to cast a shadow over equity investment optimism, with China retaliating against Washington's latest threat to impose higher tariffs on Chinese imports later this month.
The SET index moved in a range of 1,692.01 and 1,729.48 points before closing on Friday at 1,705.96, down 0.4% from the previous week, in moderate turnover averaging 51.79 billion baht a day.
Retail investors were net sellers of 2.42 billion baht and institutional investors sold 8.24 billion worth of shares. Foreign investors were net buyers of 7.37 billion baht, with brokerage firms purchasing 3.28 billion.
Newsmakers: Washington now says that 25% tariffs will apply to US$16 billion worth of Chinese imports starting on Aug 23. Beijing immediately countered with 25% penalties on $16 billion in US goods, starting from the same date. The good news for Washington: China said its trade surplus with the US in July shrank to US$28.1 billion from $28.9 billion in June.
European foreign affairs chiefs have pledged to protect firms against the impact of US sanctions for doing business with Iran. An EU "blocking statute" took effect on Tuesday to nullify US legal action against European firms in connection with Iran.
The pound fell below US$1.29 for the first time in almost a year on continuing worries that Britain will leave the EU without a trade deal. Sterling is also down against the euro, despite the recent rise in UK interest rates.
The Russian rouble slumped to its lowest level since November 2016, hours after the US announced new sanctions because of the poisoning of a former Russian spy and his daughter in the UK.
HSBC said it was "cautiously optimistic" about global growth as it announced a 4.6% increase in pre-tax profit for the first half of 2018. The bank said Asian economies remained robust despite growing trade tensions. It also said its contingency plans for Brexit had not changed, despite growing warnings of a no-deal exit.
The Bank of Thailand left its policy rate unchanged as expected on Wednesday, but said the necessity of accommodative monetary policy is subsiding, signalling a shift to a neutral stance and a possible rate increase later.
The Securities and Exchange Commission has announced expanded reporting requirements for holders of securities and derivatives. The move is aimed at providing investors with clearer information and enabling them to better track the movement of securities held by those involved with listed companies.
Investor confidence remains neutral for a fourth straight month as volatile fund flows, global trade tension and the monetary policies of major central banks dampen prospects. The investor confidence index rose 6.7% to 108.11 in August, staying in the neutral range of 80-120. A figure below 80 points is considered bearish and over 120 is bullish.
The Thai Bankers' Association has agreed to shorten the period for unmatched fund transfer returns in the event of mobile app glitches to one day from a few days.
Exports are likely to slow slightly in the second half of 2018 after 11% growth in the first half and 12% in the second half of last year. Full-year growth is likely to be 8.1% or a range of 7.3% to 8.9%, according to the latest forecast by the University of the Thai Chamber of Commerce.
Chinese buyers now dominate foreign involvement in the Bangkok property market, especially in condominiums and the trend is expected to continue, says the Thai Condominium Association.
Property investors and condo buyers from abroad are awaiting clarity on Eastern Economic Corridor regulations that would allow 100% foreign property ownership, according to a property consultant.
Advanced Info Service (AIS) and Total Access Communication (DTAC) will take part in the second round of the 1800-megahertz spectrum auction scheduled for Aug 19 after declining to take part in an earlier round.
Thai Union Group Plc (TU), the world's biggest exporter of canned and frozen tuna, reported year-on-year dips in net profit and sales, citing a stronger baht and volatile raw material costs.
Siam Cement Group (SCG), the country's largest industrial conglomerate, says wholly owned subsidiary SCG Distribution has entered a joint venture with the home-improvement chain Boonthavorn Group to establish retail outlets specialising in home-related design services.
Coming up: The EU will release its second estimate for second-quarter GDP on Tuesday and Australia will release business confidence for July. France will announce second-quarter unemployment, Germany will release a Q2 GDP estimate and the ZEW economic sentiment index for August.
Britain will update unemployment figures on Tuesday and July inflation on Wednesday, and the US will announce July retail sales on Wednesday.
Japan will release July trade figures on Thursday and Australia will release July employment data the same day. Due on Friday are Canadian unemployment data for July and US consumer sentiment for August.
Stocks to watch: Tisco Securities recommends stocks with growth potential and upside gains such as AEONTS and III, where it is expected that earnings will improve in H2 and profit will be driven by business acquisitions, and ORI where earnings are projected to grow by 180%.
DBS Vickers Securities Thailand recommends shares with sound fundamentals such as AOT, BBL, CPALL, HANA, PTTGC and SEAFCO. High dividend yield stocks are KKP, PSH, LALIN, SENA, TMT, MODERN, BCP, MC, SNC, DIF, JASIF and CPNREIT.
Technical view: Tisco Securities sees support at 1,700 points and resistance 1,730. Finansia Syrus Securities sees support at 1,690 and resistance at 1,730.
