Recap: Asian stock markets faced selling pressure last week as Wall Street retreated and tensions in Hong Kong rose. However, global markets rallied on Friday and even Thai stocks inched up after a poor week. The SET Index traded between 1,553.33 and 1,602.21 and closed at 1,570.28 point, down 1.9% on the week, in trade averaging 52.94 billion baht a day.
Foreign investors were net sellers of 2.47 billion baht, while institutional investors sold 3.53 billion and brokers 2.88 billion. Retail investors were net buyers of 8.88 billion baht.
Big movers: Impact Growth Real Estate Investment Trust (IMPACT) fell 0.94% below its 10.60-baht IPO price to 10.50 baht on its debut on Tuesday. Smart Concrete (SMART) jumped 168% above its 1.90-baht IPO price to 5.10 on Wednesday.
SMART was also the week's top gainer, up 128.4% to 4.34 baht on Friday. Top loser GJS fell 20% to 0.08 baht. N-PARK led in volume, unchanged at 0.06 baht. The top three by value were TRUE, down 6.4% to 11.60 baht; PTT, up 2% to 364 baht; and BBL, down 2.4% to 203 baht.
Newsmakers: Exports fell to a 32-month low in August on weak global demand. Export value fell 7.4% year-on-year to $18.9 billion. Imports fell for a 14th straight month, plunging 14.2% to $17.8 billion, indicating severe weakness in domestic demand.
The cabinet has approved a cash handout of up to 15,000 baht each for more than 3 million rice farmers as part of a 364.5-billion-baht stimulus package. Other measures include expediting spending of 129 billion baht from the 2015 investment budget. Another 147 billion will be spent on projects under the 2014 budget and 23 billion from the remaining Thai Khem Kaeng budget will be spent on repairs and irrigation projects.
Consumer confidence fell for the first time in five months in September as the economy showed signs of slowing and farm prices were low. The index slipped to 79.2 from 80.1 in August.
Fitch Ratings forecasts Thai economic growth of 1.2% this year with an improvement next year to 4% spurred by public spending.
The price of LPG for transport will rise 62 satang per kilogramme to 22 baht, still lower than the household cooking gas price of 22.63 baht. CNG will rise 1 baht to 11.55 baht a kg for trucks and passenger cars but it is still capped at 8.50 baht for public transport.
Thoresen Thai Agencies Plc (TTA) has diversified into food, spending nearly 1 billion baht to acquire 9% of Singapore-listed Sino Grandness Food Industry Group, a Chinese maker of canned food and drinks.
Advanced Info Service has announced plans to introduce fixed-line internet service in early 2015.
US consumer confidence fell in September for the first time in five months. The index of consumer attitudes fell to 86.0 in September from an upwardly revised 93.4 the month before.
The European Central Bank announced details of its asset-purchase plan to shore up the flagging euro zone economy, but gave no indication that a larger QE programme was imminent.
Chinese factory output showed signs of steadying in September as export orders climbed.
Japan's factory output, fell 1.5% in August to a 15-month low and household spending fell 4.7%.
Coming up this week: Minutes of the Sept 16-17 Federal Open Market Committee (FOMC) will be released on Thursday. Investors will comb them for clues about the timing of an interest-rate increase.
Stocks to watch: Asia Plus Securities recommends laggards that are expected to benefit from economic stimulus, such as STPI, SYNTEC and TASCO. Other laggards are ADVANC, INTUCH and AIT. It has buy recommendations for AOT and CENTEL in anticipation that martial law could be lifted in tourist spots.
Thanachart Securities has buy recommendations for undervalued stocks BBL, INTUCH, STECON, AOT and SPALI.
Technical View: Asia Plus Securities and Thanachart Securities both see resistance at 1,580 points with support at 1,550.