Recap: Wall Street scaled new heights on upbeat US economic indicators, while Asian stock markets were bolstered by expectations of more stimulus from the European Central Bank. The Thai stock market moved in a narrow range amid an absence of fresh positive factors.
The SET Index last week moved in a range of 1,551.20 and 1,570.86 points and closed at 1,561.63, up 0.3% from the previous week, on average daily turnover of 45 billion baht. Foreign investors were net buyers of 129.7 million baht, brokers bought 128.33 million and institutions 1.48 billion, leaving only retail investors as net sellers of 1.74 billion baht.
Big movers: Exotic Food (XO), a manufacturer and exporter of cooking ingredients, health drinks and other food products, more than doubled its 2.20-baht IPO price on its opening day on the MAI, closing at 4.46 baht. It finished the week at 6.75.
AFC was the top gainer, up 52.7% to 16.80 baht. Top loser ACAP shed 35.1% to 18 baht. N-PARK led in volume, slipping 14.3% to 0.07 baht. The top three in trading value were TRUE, up 6.5% to 11.50 baht; ICHI, losing 3.7% to 26 baht; and PTT, down 4.5% to 321 baht.
Newsmakers: US durable goods orders jumped 22.6% in July, the biggest gain on record, though the number was skewed by strong international demand for aircraft. Excluding transport, orders fell 0.8%.
US consumer confidence rose to 92.4 in August, its highest level since October 2007.
A flurry of resignations by prominent legislators and businessmen fuelled speculation that they will join PM Prayuth Chan-ocha's cabinet. Among them are former central bank governor Pridiyathorn Devakula who resigned as chairman of Post Publishing. MR Pridiyathorn is expected to be deputy PM for economic affairs.
M Prayuth invited Japanese investors to expand their presence in Thailand, particularly at the special economic zones along the borders. He also discussed Thai-Japan trade promotion strategy with Shigenobu Nagamori, CEO of the motor manufacturer Nidec Corp and an honorary adviser to the Board of Investment.
The National Council for Peace and Order (NCPO) tweaked excise taxes and Oil Fund levies to bring down the retail prices of petrol by anywhere from 1 to 4 baht a litre, saying petrol consumers were bearing too much of the subsidy for other types of fuel. The diesel price, also heavily subsidised, rose 14 satang but is still below the psychological level of 30 baht a litre.
Central bank governor Prasarn Trairatvorakul said economic growth of 2% was likely this year through the combined stimulus of accelerated budget disbursement and expedited approvals of new private investments. However, the central bank still kept its full-year forecast at 1.5%. He also reaffirmed the central bank's growth estimate of 5.5% next year.
Thai exports unexpectedly slipped in July by 0.85% from a year earlier against 3.9% growth in June. In the first seven months of 2014, exports are down 0.42% from a year earlier, but the Commerce Ministry continues to forecast full-year growth of 3.5%.
Thailand's public debt will not exceed 50% of GDP during the eight years of the government's 2.4-trillion-baht infrastructure megaproject development, according to the Public Debt Management Office. This is based on assumptions of real GDP growth of 4% a year and inflation of 3%.
The Immigration Bureau approved a new regulation allowing tourists to extend their stay by a further 30 days, effective from Aug 29. Holidaymakers from 49 countries allowed to enter Thailand under 30-day visas can now stay for 60 days, and still be eligible for the 30-day extra stay. The extension will cost 1,900 baht.
Amid mounting concerns that the economy will expand by less than 2%, the Fiscal Policy Office has raised its budget disbursement target for the October-December quarter to 30% of the total from the regular 25% to give a boost to the economy.
Central Pattana Plc plans to tap high spending power in the South by investing 3.5 billion baht in a new mall in Nakhon Si Thammarat this year.
KBANK reported the highest loan growth in July among the Big Four banks with an increase of 1% on the month, 6.3% year-on-year, and 3.2% for the year to date.
Energy and engineering group Gunkul Plc says it still believes it can achieve 50% revenue growth.
Coming up this week: More details are expected to emerge about PM Prayuth's cabinet lineup, which initial reports say has 12 men in uniform out of a total of 36.
Thailand will announce August inflation data today and China's manufacturing PMI for August is due.
The dental chain LDC will debut on the MAI tomorrow. It sold IPO shares at 1.50 baht each.
The Reserve Bank of Australia will meet tomorrow.
China's non-manufacturing PMI for August and euro-zone second-quarter GDP data will be released on Wednesday.
Stocks to watch: Tisco Securities recommends a number of shares to accumulate: AOT, LOXLEY, MC, PTTGC, TMB, STEC, CK, SCC, AMATA, HEMRAJ, WHA, BEAUTY and MC. Asia Plus Securities has buy recommendations for STPI, GUNKUL, DEMCO and TTA. Bualuang Securities recommends CFRESH, BANPU and LANNA.
Technical view: Tisco Securities sees support at 1,545 points and resistance at 1,570. Bualuang Securities sees support at 1,535 points and resistance at 1,580.