Recap: Worries over stimulus curbs by the US Federal Reserve eased after disappointing US first-quarter economic growth figures stoked expectations that the Fed will delay reductions in its monthly bond purchases. However, investors' focus has changed to China's slowdown, which could take a bigger toll on economic growth of Asian countries including Thailand.
The SET Index traded in the range of 1,400.50 and 1,451.90 points and closed last week at 1451.90, an increase of 3.7% from a week earlier, with daily average trading of 59.07 billion baht. Foreign investors turned net buyers on Thursday and Friday but were still net sellers of 10.57 billion for the week. Brokers were net buyers of 4.34 billion baht, local retail investors were net buyers of 1.13 billion baht, and local institutional investors bought 5.10 billion baht more than they sold.
Big movers: Crystal Retail Growth Leasehold Property Fund (CRYSTAL) made its debut, closing on Friday at 10.40 baht, down 20 satang from its IPO price.
Tops in trading value were banks and ICT shares. KBANK rose 8.2% on the week to 191 baht, and ADVANC gained 4.6% to 272 baht. Natural Park (N-PARK) topped the volume table, closing down 12.5% at 7 satang a share.
Rayong Purifier (RPC) was the top gainer, rising 19.7% to 1.40 baht, while Malee Sampran (MALEE) was the top loser, off 32.3% to 34 baht.
Newsmakers: The People's Bank of China stepped in to provide liquidity to some financial institutions as concerns rose over a near-halt in interbank lending.
- The US economy grew at just 1.8% in the first quarter, in a sharp downward revision from 2.4%, which sent bonds and stocks higher on hopes of more Fed stimulus from the Federal Reserve.
- The Fed might not start reducing its US$85 billion in monthly asset purchases until the second half of next year following disappointing US GDP data, said Brian Baker, CEO of Pimco Asia.
- The National Economic and Social Development Board (NESDB) said 2013 economic growth in Thailand likely would be below 5%, while the Fiscal Policy Office (FPO) lowered its projection to 4.5% from 4.8% previously.
- The Central Administrative Court ordered the government to hold public hearings before it starts on the main parts of the 350-billion-baht water management and flood-prevention plan.
- Premier Yingluck Shinawatra submitted a sweeping new cabinet lineup to His Majesty the King for endorsement. Among the changes, Niwatthamrong Bunsongphaisan is tipped to replace Boonsong Teriyapirom as commerce minister in charge of the government's widely criticised rice scheme.
- Electricity Generating Plc (EGCO) has paid 3.2 billion baht (A$110 million) for full ownership of the Boco Rock Wind Farm in New South Wales, Australia.
Coming up this week: Thai June inflation figures are due today.
- Also closely watched today will be China's official Manufacturing PMI for June. Analysts believe the number will be 50 or lower, against 50.8 in May, and the lowest in nine months. Euro zone manufacturing PMI data also will be released.
- On Thursday, Thailand reduces its consumer confidence index for June, and the European Central Bank (ECB) meets.
Stocks to watch: Finansia Syrus Securities recommends buying Thoresen Thai Agencies (TTA) on an earnings turnaround for its fiscal Q3 (April-June) after a net loss of 257 million baht in Q2. It also recommends AOT as a trading buy on higher flight and passenger totals in April and May.
- Asia Plus Securities is overweight in large-cap stocks such as INTUCH, TOP and BBL.
Technical view: Phillip Securities recommends holding cash at 50% for the short-term portfolio after the index rose above 1,440, but taking profit when the index approaches 1,500. Kasikorn Securities sees support this week at 1,425 and resistance at 1,492.
About the author
Writer: Nuntawun Polkuamdee & Darana Chudasri