RECAP: Most Asian stock markets struggled for direction yesterday, but were set to post weekly gains as risk sentiment got a boost after a surprisingly soft US inflation data fuelled bets for a September interest-rate cut.
The SET index moved in a range of 1,311.05 and 1,332.76 points this week, before closing yesterday at 1,332.04, up 1.5% from the previous week, with daily turnover averaging 36.81 billion baht.
Retail investors were net buyers of 2.89 billion baht, followed by institutional investors at 404.95 million. Foreign investors were net sellers of 3.16 billion baht, followed by brokerage firms at 200.28 million.

NEWSMAKERS: US consumer prices unexpectedly fell in June and the annual increase was the smallest in a year, drawing the Federal Reserve a step closer to cutting interest rates. The consumer price index was up 3% year-on-year, down from 3.3% in May.
- Fed chairman Jerome Powell expressed concern that holding interest rates too high for too long could jeopardise economic growth. But he told lawmakers that the central bank was still determined to push inflation down to its 2% target.
- Gold jumped above $2,400 an ounce to close in on the record price set in May, after benign US inflation data caused the dollar to dip and made gold more attractive to holders of other currencies.
- The Japanese yen surged nearly 3% on Thursday in its biggest daily rise since late 2022, a move that local media attributed to official buying to prop up a currency that has languished at 38-year lows.
- Britain's economy grew more quickly than expected in May, providing some momentum for the new government but adding to doubts about the possibility of an interest rate cut next month. The pound rose to a one-year high of $1.295 amid an improving economic outlook and newfound political stability.
- The Guangzhou Futures Exchange plans to launch platinum and palladium futures contracts in China to offer a domestic price-hedging mechanism.
- China generated 53% of its electricity from coal in May, a record low, while a record high 44% came from non-fossil fuel sources, indicating its carbon emissions may have peaked last year, according to a new analysis.
- Bloomberg reports China's solar energy industry is facing oversupply issues after overproduction in recent years. Several firms reported losses in the first quarter after selling products below cost.
- Inflation in China edged up by 0.2% year-on-year in June, the slowest pace in three months, after a 0.3% rise in May.
- Shares of Taiwan Semiconductor Manufacturing Co (TSMC) hit a record high on Thursday, buoyed by the AI boom that is fuelling data centre investment worldwide, cementing its position as Asia's most valuable company.
- New energy vehicle (NEV) exports from China grew at a slower pace in June due to new EU tariffs. Exports of EVs and plug-in hybrid cars fell by 15.2% in June compared with May, although they still rose by 12.3% year--on-year, the China Passenger Car Association said.
- Cable News Network (CNN) announced 100 job cuts, or 3% of its workforce, as well as a digital strategy that would include a new subscription-only digital offering by the end of the year.
- Deloitte data shows a significant decrease in initial public offerings (IPOs) in Southeast Asian markets in the first half of this year due to high interest rates, with market capitalisation of offerings down 71% to just $5.8 billion.
- Thailand needs stronger economic growth as the current potential growth rate of about 3% is not high enough to help the economy expand sustainably in the long term, Bank of Thailand governor Sethaput Suthiwartnarueput said on Tuesday.
- Honda Motor will halt vehicle production in Ayutthaya next year and consolidate all output at a newer plant in Prachin Buri. The Ayutthaya site will still make parts. The Japanese automaker plans to reduce car production capacity in Thailand by over 50%, from 270,000 units to 120,000 a year, amid intense competition from Chinese rivals.
- The Excise Department said 14 manufacturers must produce 180,000 electric vehicles to compensate for imports in 2022-25 in order to qualify for subsidies intended to promote the industry. The EV makers have expressed concern over potential oversupply due to high household debt and loan rejections. The department is seeking cabinet approval for another 7 billion baht to subsidise 35,000 more EVs.
- The Federation of Thai Industries is encouraging auto parts manufacturers to diversify into the medical device business to provide a safety net as demand for combustion-engine vehicles falls.
- The Ministry of Finance has cut the digital wallet budget to 450 billion baht, saying it can be funded from the 2024 and 2025 budgets without the need for a loan from the Bank for Agriculture and Agricultural Cooperatives (BAAC).
- The Ministry of Finance plans to discuss a loan to value (LTV) criteria review with the Bank of Thailand, as high non-performing loans are pressuring real estate growth. Longer mortgage repayment terms as well as longer land leases for foreigners are also being proposed.
- The Bank of Thailand reported household NPLs in the first five months 2024 reached a record high of 1.14 trillion baht, surpassing the 1.1 trillion baht during the pandemic. Car, home, credit card and cooperative loans continue to rise.
- The June consumer confidence index reached a 9-month low, due to concerns about political instability, higher energy prices, a global economic slowdown, said the University of the Thai Chamber of Commerce.
- Higher electricity bills are likely in the September-December period, to accommodate gradual debt repayment to the Electricity Generating Authority of Thailand and PTT Plc for absorbing subsidy costs, says the Energy Regulatory Commission.
- The SET is talking with the Securities and Exchange Commission about disclosing information about listed company executives who are using shares as loan collateral or mortgages on a website for investors, an improvement from the current monthly reports.

COMING UP: On Monday, Germany releases monthly retail sales, China reports new loans and the euro zone updates manufacturing data. On Tuesday, the US reports June retail sales and the euro zone releases trade figures. Due on Wednesday are UK and euro zone inflation and Japanese trade data. On Thursday, the European Central Bank holds a policy meeting. On Friday, the UK reports monthly retail sales.

STOCKS TO WATCH: Globlex Securities recommends stocks set to benefit from US interest rate cuts. Analysts surveyed by the Investment Analysts Association suggest stocks related to tourism, communications and consumption, such as ADVANC, AOT, CPALL, MINT and TU.
- Maybank Securities suggests three themes, starting with infrastructure plays that benefit from state budget disbursement, including TASCO, SCCC and CK. Second is travel-related stocks, especially AOT, CENTEL and BH. Finally, look at firms expected to improve their profit margins. For instance, GPSC will benefit from lower gas prices and ADVANC from adjustments in service fees and lower marketing costs.
TECHNICAL VIEW: Finansia Syrus Securities sees support at 1,300 points and resistance at 1,360. Asia Plus Securities sees support at 1,320 and resistance at 1,350.