Recap: Asian stock markets climbed as signs of strength in the United States bolstered demand for riskier investments. Higher oil prices also helped propel bourses. Risk-on sentiment and speculation about better third-quarter earnings buoyed the Thai stock market.
The SET index moved in a narrow band of 1,487.62 to 1,518.23 points before closing on Friday at 1,504.34, up 1.4% from the previous week, in turnover averaging 46.28 billion baht a day. Foreign investors were net buyers of 1.25 billion baht after cashing out the week before. Institutional investors were net buyers of 3.35 billion baht and brokers bought 2.23 billion. Retail investors were net sellers of 6.83 billion baht.
Big movers: BCPG led in turnover, adding 16.8% to 13.20 baht; Banpu rose 11.5% to 17.50 baht and SCB gained 2% to 151 baht. TPIPL led in volume, up 3.3% to 2.50 baht. SMM was the top gainer, shooting up 21.3% to 1.99 baht, and EASON was the top loser, sliding 23.4% to 4.02 baht.
Newsmakers: US employers added 157,000 jobs in September, below forecasts of 175,000, but analysts believe the figure is healthy enough to persuade the Fed that an interest-rate increase in December is warranted.
US factory and durable-goods orders accelerated in August, while the Institute for Supply Management manufacturing index advanced to 51.5 from a contraction-level 49.4 reading a month earlier.
US automakers' sales in September fell 0.5% year-on-year to 1.44 million, despite big consumer discounts, as pickup truck volumes fell.
Chinese manufacturing activity expanded again in September, with the official Purchasing Managers Index (PMI) holding steady at 50.4.
Business sentiment among large Japanese manufacturers remained unchanged in September from three months earlier, with fears lingering about the outlook for the export-oriented economy, the Bank of Japan's quarterly Tankan survey showed. The key index measuring confidence among companies such as carmakers and electronics firms was +6, against a market forecast of +7 in a Kyodo News survey. The index for large non-manufacturers slipped to +18 from +19.
Euro zone manufacturing accelerated in September as new business grew at the fastest pace in three months. The manufacturing PMI rose to 52.6 from 51.7, and an output index rose to 53.8 from 53.3.
The World Bank slightly raised its 2016 growth forecast for developing East Asia and the Pacific, saying that Brexit was unlikely to have any significant near-term impact. It now expects the region, including China, to expand by 6.4% this year and 6.2% in 2017. It raised its full-year growth forecast for Thailand to 3.1% from 2.5%, but voiced concerns about over-reliance on government spending.
Indian central bank governor Urjit Patel led a new monetary policy committee to lower interest rates at its first review, taking advantage of easing inflation. The benchmark was lowered to 6.25%, the lowest since January 2011, from 6.50%.
Australia's central bank left interest rates at 1.5% as it weighs the effect of past easing and as a boom in apartment building helps underpin economic activity and job growth.
Thai consumer prices rose for the sixth month in September, on higher costs for fresh foods after floods. The Consumer Price Index, based on 450 products and services, edged up 0.38% year-on-year.
Business leaders are more positive about economic prospects this year and next, citing improved exports in August and government measures to rev up infrastructure spending. The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) revised up its forecast for GDP growth this year to between 3.3% and 3.5% from the earlier projection of 3% to 3.5%. However, it still expects a 2% contraction in exports.
TMB Analytics, a research unit of TMB Bank, forecasts Thailand's exports will expand by 2.3% next year, falling for a fourth year running in 2016. Robust economic growth of neighbouring countries will contribute to the improvement in 2017, it said.
Consumer confidence rose for a third month in September on hopes that economic, political and social stability will improve further as the government continues its focus on investment and stimulus. The University of the Thai Chamber of Commerce (UTCC) said the index rose to 74.2 points from 73.2 in August.
Thai Beverage Group, controlled by tycoon Charoen Sirivadhanabhakdi, is negotiating to buy Ticon Industrial Connection Plc, a developer of ready-made factories and warehouses for rent, says a senior company executive who requested anonymity.
TPI Polene Power Plc (TPIPP) is going ahead with its plan to list on the SET by the end of the year. It plans to offer 2.5 billion shares at one baht each to raise funds for the expansion of three new power plants.
Group Lease Plc (GL) is venturing outside Asean for the first time by acquiring a stake in a Sri Lankan microfinance lender for $70 million.
Coming up this week: China's loan growth report for September and Singapore's 3Q GDP are due on Monday.
Thailand's earnings season kicks off, with banks the first to report their results from today until Oct 21.
The Euro zone ZEW business expectations survey for this month is available tomorrow.
Euro zone industrial production for August and minutes of the last Fed meeting are to be released on Wednesday.
China's trade balance for September is due on Thursday. The Bank of Korea meets the same day.
Stocks to watch: Bualuang Securities' most attractive stocks in terms of technical factors are SCCC, SVI, AMATA, AH, DCC, BAY, GLOBAL, GFPT, WHA, BANPU, TOP, DELTA, MCOT, BCP, BJC, STPI, SPCG, EGCO, HANA, AP and KKP. For fundamentals, the broker recommends INTUCH, RCL, CPALL, KCE, TVO, VGI, ADVANC, SCC, MAJOR, GLOW, KKP, IVL, GLOBAL, WORK, STA, LPN, BAY, CPN, SPCG, EPG and DCC.
KTB Securities recommends selective buys on PTTEP, BANPU, CPALL, MINT, BLA,WICE and PLANB.
Technical view: Bualaung Securities tips support at 1,440 with resistance at 1,530 points. Thanachart Securities sees support at 1,480 and resistance at 1,524 points.
