Recap: Offshore capital continued to flow back into Asean though net buying was small. However, foreign investors were net sellers of Thai shares on concerns over local political issues related to the 2014 budget bill and the 2-trillion-baht borrowing bill and a dearth of fresh positive factors.
The Stock Exchange of Thailand (SET) closed near the week's lowest level. The SET Index traded in the range of 1,413.51 and 1,473.67 points and closed at 1417.49, off 4.6% from a week earlier, with heavy turnover of 40.03 billion baht a day. Foreign investors were net sellers of 10.09 billion baht, followed by brokers at 978.43 million. Retail investors were net buyers of 8.99 billion baht and institutions 2.07 billion.
Big movers: Bangkok Dec-Con (BKD), newly listed on the MAI, closed Friday at 2.90 baht, up 93.3% from its 1.50-baht IPO price. Amata B. Grimm Power Plant Infrastructure Fund (ABPIF), the second infrastructure fund, closed at 10.60 baht, up 0.95% from its IPO price of 10.50 baht.
Tops in turnover were TRUE, down 7.1% to 7.90 baht; Shin Corporation (INTUCH), off 5.9% to 84 baht; and SCB, down 9.4% to 154 baht.
Natural Park (N-PARK), tops in volume, slid 14.3% to 0.06 baht. Everland (EVER), last week's top gainer, rose 45.4% to 1.28 baht. Yong Thai (YCI), the top loser, plunged 32.4% to 16.90 baht.
Newsmakers: The US budget fight threatens a federal government shutdown as soon as tomorrow. Even though Phillip Securities believes lawmakers will eventually pass budget resolutions, the Oct 17 debt default deadline remains worrisome.
- The Fiscal Policy Office slashed its 2013 GDP growth projection from 4.5% to 3.7% on the back of weak exports and domestic consumption.
- Japan said it needed more information before deciding whether to join Thailand-backed Dawei megaproject in Myanmar.
- Gold futures dealers have proposed a spot gold exchange to improve trading transparency. The central bank has noted discrepancies between US dollar exchange values and gold export-import values.
- The cabinet will review a proposal late next month to cut luxury products import duties to 5% from 30%.
- Mitsubishi Motors expects its Thai sales to fall 15-20% this year as there is no first-car scheme and floods are also dampening buyer sentiment.
- Siam Commercial Bank aims for a 10% market share in bill payments at retail shops over three years thanks to a tie-up with FamilyMart.
- Advanced Info Service (ADVANC) will introduce a new mobile-wallet service for online shopping.
- With an investment of 4.5 billion baht, Bangchak Petroleum projects its third-phase solar farm project will be operational by mid-2014, generating additional revenue of 1.2 billion baht a year.
Coming up this week: The clock ticks toward the US budget deadline tomorrow. Failure to reach a budget deal could threaten a government shutdown. These concerns could cap any market upside and spark selling.
- China's HSBC Manufacturing PMI for September is due today, Thai inflation for September and US ISM Manufacturing data tomorrow.
Stocks to watch: Amid market volatility, Asia Plus Securities recommends investors allocate 40% of their portfolio to stocks, focusing on high EPS growth and upside gains: AOT, ASK, BH, BEC, CPALL, EWR, RS, SCC, INTUCH and TPIPL. It said tension could rise as the Democrats will take the 2-trillion-baht borrowing bill to court, while selling pressure from institutional investors is possible.
KGI Securities recommends stocks benefiting from the tourism high season, AOT and CENTEL. It also recommended stocks linked with the recovery of the Chinese economy such as BANPU, TTA and IVL.
Technical view: Krungsri Securities sees support at 1,400 and resistance at 1,444 and 1455. Country Group Securities sees support at 1,400 and 1,410 and resistance at 1,430 and 1,440.
About the author
Writer: Nuntawun Polkuamdee & Darana Chudasri