RECAP: Asian stocks rose to a seven-month peak on Friday as investors cheered the prospect of an imminent interest rate easing cycle led by major central banks, keeping the dollar and Treasury yields under pressure.
Thai shares moved in a range of 1,350.98 and 1,386.58 points this week, before closing yesterday at 1,386.42, up 1.4% from the previous week, with daily turnover averaging 40.12 billion baht.
Retail investors were net buyers of 2.87 billion baht, followed by institutional investors at 2.31 billion. Foreign investors were net sellers of 4.21 billion baht, followed by brokerage firms at 962.9 million.
NEWSMAKERS: US interest rate reductions will “likely be appropriate” later this year, Federal Reserve chairman Jerome Powell told lawmakers on Wednesday. He reported progress in bringing inflation down, but said the central bank still needs “greater confidence” in its continued decline before making its first move at some point this year.
- The European Central Bank on Thursday held its key interest rate at a record high and signalled it won’t begin cutting rates before June, as policymakers take time to assess whether a historic run of increases has tamed inflation.
- The two-year Japanese government bond yield hit a 13-year high yesterday amid growing speculation that the Bank of Japan could exit from its negative rate policy as soon as its next meeting on March 18 and 19.
- The US trade deficit widened in January by more than forecast, rising 5.1% from the prior month to $67.4 billion — the widest since April. The shortfall was driven by a pickup in the value of imports while exports were little changed.
- Gold snapped a winning streak that began on Feb 28, correcting lower to near $2,160 per ounce during the Asian trading hours yesterday. Prices have been buoyed by market expectations that the US will start cutting interest rates as early as June.
- Bitcoin reached an all-time high of $68,869 on Tuesday, exceeding the previous high of $68,789 established on Nov 10, 2021, before falling back as some investors locked in profits. The world’s largest cryptocurrency tumbled below $60,000 again in a matter of hours and rebounded to $67,300 yesterday.
- China has set an ambitious economic expansion target of around 5% for 2024, similar to last year’s growth target, Premier Li Qiang said at the opening of the annual gathering of the National People’s Congress on Tuesday.
- Chinese exports grew 7.1% in January and February, beating the 1.9% forecast and significantly higher than the 2.3% gain recorded in December, because of strong demand from Russia, India and emerging markets in Africa and Latin America.
- Apple’s iPhone sales in China fell 24% year-on-year in the first six weeks of this year, according to the research firm Counterpoint, as the US company faced increased competition from domestic rivals such as Huawei.
- The Indian conglomerate Tata Sons Ltd may fetch a valuation of as much as 8 trillion rupees ($96 billion) in an initial public offering that could potentially take place within the next 18 months, according to Mumbai-based investment bankers.
- Vietnam’s rice exports are forecast to be between 6.5 million and 7 million tonnes this year, down from last year’s record high of 8.1 million, according to the Vietnam Food Association.
- Singapore will raise the salary criteria for foreign executives and professionals that companies can hire starting next year, the government announced on Monday.
- Battery electric vehicles (BEVs) will be, on average, cheaper to produce than comparable internal combustion engine cars by 2027 thanks to new manufacturing methods that are lowering production costs, the market research firm Gartner said on Thursday.
- Sales of (BEVs) in Thailand skyrocketed last year by 600% to 73,568 units, with the trend expected to continue this year, says the Federation of Thai Industries.
- PTT Oil and Retail Business (OR) is collaborating with Konvy, a major beauty e-commerce platform, to propel ongoing expansion in health and beauty, strengthening OR’s lifestyle ventures.
- B.Grimm Power (BGRIM) is expanding its renewable energy business through investments in Nakwol Wind and Hanbit Wind, two offshore wind power plants in South Korea which have a combined installed capacity of 740 megawatts.
- Banpu Power Plc is planning to acquire a new gas-fired power plant in the US this year to increase its electricity generation capacity as it seeks more business opportunities in the country.
- The Ministry of Finance has announced the criteria to apply for a virtual bank licence, with initial registered capital set at 5 billion baht. It expects to approve the first licensees by mid-2025.
- The Stock Exchange of Thailand (SET) and Market for Alternative Investment (MAI) are extending their daily trading hours from March 25, opening the afternoon session 30 minutes earlier, allowing trade on the two bourses for five hours per day.
- The Securities and Exchange Commission has announced new criteria for companies wanting to raise funds through an initial public offering (IPO), requiring the names of the 40 major share allocations to be disclosed at least two days before shares start trading on the bourse.
- Since the permanent visa exemption between Thailand and China took effect on March 1, airlines and tour operators have reported a surge of bookings from Thai travellers from the Songkran holiday until May, with some routes containing more Thai passengers than Chinese.
- Thai consumer confidence rose to a 48-month high in February, as government stimulus measures and a rebound in tourism revitalised economic activities.
- The Thai economy, which is expected to grow slowly this year, should improve in the second quarter thanks to state budget spending and easing tension in the Red Sea region, says the Joint Standing Committee on Commerce, Industry and Bangkok (JSCCIB).
- Siam Commercial Bank (SCB) expects no growth in small and medium enterprise (SME) and retail loans this year, citing the fragile financial conditions of these two customer segments.
- Holders of credit cards issued in Thailand will be charged a fee of 1% for foreign currency conversion when they make purchases in baht from merchants and online shops registered outside the country.
- Thailand’s interest rate levels are appropriate for current conditions and are neutral, the World Bank said on Wednesday.
- Headline inflation as measured by the consumer price index fell for a fifth straight month in February, with a 0.77% drop, versus a 1.1% decline the previous month.
- Foreign tourists spent more on accommodation following the pandemic and opted for street food more than fine dining, while TikTok has gained prominence among people seeking information and inspiration for trips to the Kingdom, says the Tourism Authority of Thailand (TAT).
- The government will push for a free trade agreement between Thailand and the European Union, visa exemptions for holders of Thai passports and greater cooperation in trade and investments, said Prime Minister Srettha Thavisin as he began an official visit to Germany and France.
- Thailand has been selected to host the 2029 International Horticultural Expo, a four-month event expected to attract up to 4 million visitors to Nakhon Ratchasima and pump 19 billion baht into the economy.
COMING UP: On Monday, Japan releases the large manufacturing conditions survey. On Tuesday, the US and Germany will report February inflation, the UK will update unemployment data and Opec will release its monthly oil market report. On Wednesday, the UK will report monthly GDP, industrial production and trade data while the US reports crude oil inventories. Thursday will bring US jobless claims, retail sales and monthly producer prices, followed by industrial production and export-import price index on Friday.
- Locally, the SEC will have a media briefing on Monday. Centara Hotels & Resorts will hold a briefing on Wednesday, followed by the Central Pattana business outlook on Thursday.
STOCKS TO WATCH: Krungsri Capital Securities says that with a downtrend in US interest rates expected to start in June, local beneficiaries could include BBIK among growth stocks, as well as GPSC and GULF in power plants. In the high-debt group, it chooses TRUE, MINT and CPALL, while CPAXT and BJC are consumer plays.
- Globlex Securities recommends stocks that will benefit from the Thai-Chinese visa exemption that took effect this month, namely AOT, AAV, MINT, CENTEL, ERW, SPA and SKY.
TECHNICAL VIEW: DBS Vickers Securities sees support at 1,350 points and resistance at 1,395. Globlex Securities sees support at 1,350 and resistance at 1,400.
