What's new in business news: August 8, 2013

What's new in business news: August 8, 2013

Office space shift to outer Bangkok, govt rice sales to use AFET futures exchange & stock market not affected by protests.

Workers dry paddy at a mill in Bang Rakam in Phitsanulok province last month. Paddy with low humidity fetches higher prices. PANUMAS SANGUANWONG


SET ignores politics, rises

Mass regional sell-off on Fed's tapering

Despite intensifying political turbulence, the Thai stock market shrugged off the psychological effects on Wednesday, while the tourism and retail industries are more concerned about a blockade of the business area if the situation turns violent.

The Stock Exchange of Thailand index resisted negative sentiment, gaining 0.04% or 0.6 points to close at 1,429.99 in thin trade worth 30.3 billion baht.

Foreigners sold 2.27 billion baht more in shares than they bought, with retail investors net buyers of 1.41 billion.


Office space heats up as firms spread out

Demand for Bangkok office space rose in the first half, driven by multinational companies expanding as part of a trend likely to continue until 2015.

The companies include cosmetics, finance, insurance, medical, automotive, consulting and electronics firms.

Many are adding to existing space in the same building or moving to other buildings close to mass transit lines or in the central business district and outer CBD areas.

Expansion and relocation activity has grown in 2012-13 and will continue in the future after some new buildings are completed in 2014 and 2015.

In 2014, more than 257,000 square metres is to be completed, the most in five years. The space will be from four buildings: Equinox Phahol-Vibha, G Land Tower Grand Rama 9, Bhiraj Tower and The Capital Market Center-AIA.

The expansion will have an impact on existing supply and vacancy rates as some firms move from existing buildings into new ones.

As rental rates in the CBD rise and no new office buildings appear, Ratchadaphisek Road will become the second CBD and a prime location for office space, given its proximity to the MRT.

The trend has slowed in the past 14 years. More than 84% of total supply was complete before 2000, meaning most office buildings in Bangkok are more than 10 years old.

In the first half of 2013, the average occupancy rate of all office space in Bangkok topped 85%.

Most office buildings in areas along mass transit lines raised their rental rates by 10% or more from the previous year.

Nearly 80% of total supply is along mass transit lines.


Government rice sales through AFET futures exchange

Small lots expected to attract private buyers

The government is preparing to sell 150,000 tonnes of its rice stocks through the Agricultural Futures Exchange of Thailand (AFET), starting from Aug 15.

This is the first batch of 1 million tonnes it hopes to sell through the local futures market this year.

Yanyong Phuangrach, deputy commerce minister, said this would be AFET's first sale since 2009. Some 50,000 tonnes would be of Hom Mali Rice 100% Grade B, with the remaining 100,000 tonnes slated for 5% white rice.

The government is set to scrap the sale if the bid prices are considered to be too low.

AFET will be a key channel for the government to dispose of its rice stock given the small lots of only about 2,000 tonnes allocated. 

The government's existing rice auctions for relatively large amounts don't have enough bidders as the private sector is wary of the rice quality.

Recently, the government managed to sell only 210,000 tonnes in all - 60,000 tonnes of white rice, 30,000 tonnes of broken rice and 120,000 tonnes of parboiled rice.

The AFET said in July it expects the government's plan to release pledged rice through the market will create at least 50,000 trading contracts for every 1 million tonnes of rice tendered through auctions for the six-month period.

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  • allocate (verb): to officially give something to someone - จัดสรร, จัดแบ่ง
  • auction: a usually public sale of goods or property, where people make higher and higher bids (= offers of money) for each thing, until the thing is sold to the person who will pay most - การขายโดยการประมูล, การขายทอดตลาด
  • automotive (adj): related to cars and the automobile industry that makes cars, trucks, etc -
  • average: an amount calculated by adding several amounts together, finding a total, and dividing the total by the number of amounts - เฉลี่ย, ค่าเฉลี่ย
  • batch: a group of things considered similar in type - พวก, ชุด, กลุ่ม
  • bid: an offer to buy something at a specific price - ยื่นเสนอราคา
  • bidder: a person or company who makes an offer to buy/sell something at a specific price - ผู้ประมูล ผู้ยื่นเสนอราคา
  • blockade: to stop someone/ something from moving through or along something else - ปิดกั้น, กีดขวาง
  • central business district (CBD) (noun): downtown; the part of town where the offices of most businesses are located -
  • channel (noun): a method for doing something - วิธีการ, ช่องทาง
  • commodity: a product or a raw material that can be bought and sold - โภคภัณฑ์
  • concerned: involved in something, or affected by something - เกี่ยวข้องกับ ที่สัมพันธ์กับ
  • consider: to regard as; to think of as - ถือว่า
  • consulting: giving expert advice about something to other people - ให้คำปรึกษา
  • contract: an official written agreement - สัญญา
  • cosmetic: involving substances, treatments, etc. that which are intended to improve the appearance of your face or body - ซึ่งทำให้สวยงาม
  • demand (noun): the need and desire of people to buy goods - อุปสงค์
  • dispose of: to get rid of - ทำลาย
  • driven by (verb): caused by -
  • effect: a change that somebody/something causes in somebody/something else; a result - ผลกระทบ
  • existing (adj): present now; in use now; used now - ที่มีอยู่
  • expand: to make or become larger - ขยาย เพิ่ม
  • expansion: when something increases in size, number or importance - การขยายออก
  • fetch: to be sold for a particular amount of money - ขายในราคาหนึ่ง
  • finance: to provide money for something - จัดหาเงินทุนให้
  • firm: a business or company - บริษัท
  • future (noun): a contract to buy or sell an amount of something at some date in the future for a certain price (for a commodity such as rice or oil) - สัญญาซื้อขายล่วงหน้า
  • futures exchange (noun): a place where futures contracts are bought and sold by investors and traders - ตลาดซื้อขายล่วงหน้า
  • humidity: the amount of water that is present in the air - ความชุ่มชื้น
  • ignore: to fail to pay attention to; to pretend that you have not noticed or do not know about something - เพิกเฉย
  • index: a number that shows the price, value, or level of something compared with something else - ดัชนี
  • insurance: an arrangement in which you regularly pay an insurance company an amount of money so that they will give you money if something you own is damaged, lost, or stolen, or if you die or are ill or injured - การประกัน
  • intensify: to get stronger - เข้มข้นขึ้น
  • key: very important - ที่สำคัญ
  • location: where someone or something is - ที่ตั้ง,ทำเล
  • manage (verb): to succeed in doing something; to deal with something - สำเร็จ,จัดการได้สำเร็จ, ทำได้สำเร็จ
  • managed to (verb): in the end, did do something, but it was difficult and seemed not possible -
  • mass: a large amount of something - ปริมาณมาก
  • mass transit: involving the movement of large numbers of people, using buses, trains, etc. - การขนส่งมวลชน
  • mill (noun): a building fitted with machinery for crushing, cutting or grinding something - โรงสี, โรงเลื่อย
  • multinational (noun): a company that operates in many different countries - บรรษัทข้ามชาติ, บริษัทระหว่างประเทศ
  • negative: bad - ที่เป็นด้านลบ
  • net (adj): a final amount, after everything has been subtracted or taken away -
  • occupancy rate: the percentage of rooms in a hotel that have paying guests staying in them, i.e., paying guests occupying them -
  • office space (noun): offices that can be rented; square meters of offices in a building that are available for renting -
  • paddy: rice as it comes from the field after harvest - ข้าวเปลือก
  • parboiled (adjective): to boil rice until it is partly cooked - ข้าวนึ่ง, ข้าวเปลือกนำมานึ่งแล้วทำให้แห้งและนำไปสี เป็นการสงวนรักษาวิตามิน B1
  • pledge rice: to sell rice to the government at a particular price, with the right to reclaim the rice if the market price goes higher - จำนำข้าว
  • prime: of the best quality - ที่ดีที่สุด
  • private sector: businesses and industries that are not owned or controlled by the government - ภาคเอกชน
  • proximity: the state of being near in space or time - ความใกล้ชิด
  • psychological: connected with a person's mind and the way in which it works - ทางด้านจิตใจ, ทางจิตวิทยา
  • rate (noun): the price per day, per hour or some other unit of time - อัตรา, ราคา
  • regional: of or relating to a region - เกี่ยวกับภูมิภาค
  • relatively: somewhat; in comparison with someone or something similar - ค่อนข้าง
  • relocation: the process of moving someone or something to a new place - การย้ายที่ใหม่
  • rental: the act of renting something or an arrangement to rent something - การเช่า
  • resist: to oppose or fight against someone or something - ต้านทาน, ต้าน, ขัดขวาง,
  • retail: to sell directly to the public for their own use - ขายปลีก
  • retail investor (noun): an individual who make investments rather than a companies or organisation -
  • sell-off (noun): the sale of a large number of stocks, bonds, etc with a fall in value -
  • sentiment: a thought, opinion or idea based on a feeling about a situation, or a way of thinking about something - กระแส, แนวความคิด, ความคิดเห็น
  • shrug off: to show that something does not worry or upset you - ไม่เอาใจใส่, ไม่สนใจ
  • situation: all the circumstances and things that are happening at a particular time and in a particular place - สถานการณ์
  • slate: to plan that something will happen at a particular time in the future - วางแผนสำหรับสิ่งที่จะเกิดขึ้นในาในอนาคต
  • space: an area or a place that is empty or that can be moved about freely - ที่ว่าง
  • spread: to gradually affect or cover a larger area - แพร่กระจายไปทั่ว
  • stock: an amount of something that you keep so that you can use it when you need it - ที่เก็บไว้ในสต๊อก
  • supply (noun): an amount or quantity of something that is available to buy or use - อุปทาน
  • taper (verb): reduce or grow smaller slowly and gradually -
  • tender (verb): to formally offer or announce something, usually in writing - ยื่น
  • thin trade: not a lot of buying and selling -
  • trading: the activity of buying and selling things - การซื้อขาย, การค้าขาย
  • trend: a gradual change or development that produces a particular result   - ทิศทาง แนวโน้ม
  • turbulence: a state of confusion, disagreement or lack of order - ความวุ่นวาย
  • vacancy (noun): an office, apartment or building that is not being rented and is available for people to rent - ห้องว่าง, ที่พักสำหรับให้เช่าว่าง
  • violent: involving or caused by physical force that is intended to hurt or kill somebody - รุนแรง, ร้ายแรง, สาหัส
  • wary: careful or nervous about someone or something because you think they might cause a problem - ระมัดระวัง
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