Recap: The US Federal Reserve's rising optimism over the economic growth outlook and hints that it would start paring its asset purchases from $85 billion a month, stopping entirely in mid-2014, rattled global stock markets as foreign money went flying out.
The SET index slumped below 1,400 twice last week, but it struggled to close just a half-point above the psychological mark.
The main index traded in the range of 1,354.62 and 1,492.28 points and closed on Friday at a year-low of 1,400.50, a 4.4% drop from a week earlier, with daily average trading volume of 46.24 billion baht.
Foreign investors were net sellers of 12.41 billion baht last week, bringing their net-sell position for the year to 66 billion. Brokers were net buyers of 1.27 billion baht. Local retail investors made net buys of 7.06 billion baht and local institutions 5.06 billion.
Big movers: Nok Air (NOK) made its debut on the SET on Thursday. The stock opened at 26.75 baht, 2.88% above the IPO price of 26 baht before closing the day at 26.50. It closed its first week at 28.50 baht, 9.61% higher than the IPO price, despite the serious headwinds in the broad market.
Tops in trading value were large market cap stocks. Shin Corporation (INTUCH) declined 5.17% on the week to close at 78 baht; KBANK was off 9.5% to 176.50 baht; Advanced Info Services (ADVANC) lost 2% to 260 baht; CPALL) shed 9.9% to 36.25 baht; and Jasmine International (JAS) fell 9.9% to 7.35 baht.
Natural Park (N-PARK) continued to top the share volume table, closing the week down 20% at 80 satang. The top gainer was Tong Hua Communications (TH) with a 32.57% rise to 2.32 baht. Toyo Thai Corp (TTCL), the week's top loser, closed down 20% at 36 baht.
Newsmakers: The government is bracing for farmers' protests after reducing the buying price of paddy rice under its pledging programme to 12,000 baht a tonne from 15,000 baht following hefty losses of 136 billion baht over the first two crop seasons.
- Domestic new car sales in May shrank by 3.5% year-on-year, the first contraction in 17 months, to 11,848 units, as most of the cars under the government's first-time car buyers' programme have been delivered.
- The Dow Jones index shed 560 points in two days after Federal Reserve Chairman Ben Bernanke said the US central bank was getting closer to pulling back on its $85 billion in monthly asset purchases. He said moderate growth should lead to further improvements in the job market, as the headwinds facing the economy are easing.
- The HSBC China Flash Manufacturing PMI dropped to a nine-month low of 48.3 in June from the final reading in May of 49.2, drifting further from the 50-point level that separates expansion from contraction.
Coming up this week: Thai trade figures for May are expected to be released late this week, based on Customs Department data. Authorities hope there will be no repeat of the fiasco with the April figures, when a clerical error forced a major downward revision.
- Sales of US new homes and US consumer confidence in May will be released on Tuesday, and the final US gross domestic product reading for the first quarter is scheduled to be released on Wednesday.
Stocks to watch: Phillip Securities recommends technical trading in CPALL, PTTEP and JAS.
- DBS Vickers Securities says that if China's economy remains weak, watch for impact on stocks of companies with investments in China. They include CPF, BBL, KBANK, BANPU, IVL, TRUBB, ROJNA, HANA, and SUC. For long-term investment, the house has a buy recommendation on STPI.
Technical view: Tisco Securities sees support this week at 1,350 and resistance at 1,450, and Phillip Securities sees support at 1,360 and resistance at 1,420.
About the author
Writer: Nuntawun Polkuamdee & Darana Chudasri