Recap: The Stock Exchange of Thailand clawed its way back as concerns over political violence eased. Anti-government protests ended peacefully after the House of Representatives passed a contentious political amnesty bill, which now goes to a committee for further study.
The SET Index traded in the range of 1,405.71 and 1,455.08 points and closed on Friday at 1,420.94 points, up 0.9% from the previous week, but with anaemic daily average trading value of 29.7 billion baht. Foreign investors were net sellers of 8.41 billion baht but all others were net buyers: brokers at 1.26 billion baht, domestic retail investors 1.55 billion and local institutions 5.6 billion.
Big movers: Pace Development (PACE) made its debut on the SET and Union Auction (AUCT) on the Market for Alternative Investment (MAI). PACE struggled and closed its first week at 2.62 baht, 25.1% below its 3.50-baht IPO price. AUCT gained 44% from its 2-baht IPO price in Friday's debut.
The top three shares by turnover were led by ADVANC, which lost 1.05% on the week to 282 baht. BAY gained 2% to 38 baht after the Bank of Thailand approved the application by Japan's Bank of Tokyo Mitsubishi UFJ to acquire a majority stake in the Thai lender. TRUE was unchanged at 8.10 baht.
International Engineering (IEC) was the top gainer by volume, rising 33% to 0.04 baht. Varopakorn (VARO), the week's top loser, closed down 14.9% at 5.15 baht.
Newsmakers: China's export figures were better than expected in July, leading to optimism that the economy was stabilising. Markets also were buoyed by the Bank of Japan's decision to maintain its easing stance and its forecast that the economy was recovering modestly.
- The presidents of both the Chicago and Cleveland Fed branches said the US central bank could soon begin reducing the pace of its bond-buying stimulus if recent improvements in the job market persist. New jobless claims reached a six-year low for the week ended Aug 3.
- The Thai cabinet approved a 20-measure stimulus package, which Deputy PM and Finance Minister Kittiratt Na-Ranong estimated could lift GDP growth this year by one percentage point.
- Thai consumer confidence in July fell to 80.3 points, a seven-month low, and is expected to decline further on worries about domestic politics and the cost of living.
- Kasikornbank said its rejection rate for mortgages had increased to 30-35% of total applications from 25-30% earlier, reflecting higher consumer debt burdens.
- The government has approved in principle the participation of MCOT, the majority state-owned operator of Modernine TV, to participate in digital TV auction scheduled for October.
- Samart Corp intends to acquire a stake in M Link Asia Corporation, the handset and mobile accessory retailer of the Wongsawat family.
- Vibhavadi Hospital is embarking on a 3-billion-baht spending programme to acquire four hospitals and two golf clubs this year under a two-year plan. It expects double-digit revenue growth this year from 1.8 billion baht in 2012.
- DTAC is raising its annual investment budget this year to 14.5 billion baht from 12.5 billion to expand 3G coverage.
- Thai Rung Union Car, the SET-listed vehicle assembler and parts maker, shelved its plan to build a third plant until early next year, citing sluggish demand in the local market. Thailand's car demand is expected to slump this year after record sales spurred by tax incentives in 2012.
- Charoen Pokphand Foods Plc (CPF) reported weak Q2 results because of a slowdown in the shrimp industry. Revenue was 93.19 billion baht, up just 1% year-on-year, while net profit fell 59.5% to 1.63 billion baht.
Coming up this week: Japan will release second-quarter GDP data today. Euro-zone second-quarter GDP figures are due on Wednesday.
- The Thai House of Representatives will deliberate the 2014 budget draft bill and the 2-trillion-baht borrowing bill this week.
- China will report new loan growth for July on Thursday.
Stocks to watch: Bualuang Securities has buy recommendations for HEMRAJ, CPALL and BH, with a hold on TOP and a "sell" on ADVANC. Asia Plus Securities has buy recommendations for BEC, CPALL and ADVANC.
Technical view: Asia Plus Securities sees support 1,403 and resistance 1,460. Capital Nomura sees support at 1,400 and resistance at 1,475.
About the author
Writer: Darana Chudasri & Oranan Paweewun