Recap: Disappointing Chinese trade data that revived concerns about the world's second largest economy weighed on global market sentiment last week. Thai shares experienced wild swings throughout the week on domestic worries, plunging below 1,400 points before buying on dips reversed the sharp drop on Friday.
The SET index moved in a wide range of 1,343.13 to 1,480.19 points before closing on Friday at 1,477.61, down 1.8% from the previous week, in heavy turnover averaging 95.87 billion baht a day. Institutional investors were net buyers of 11.4 billion baht. Brokers were net sellers of 5.88 billion baht, foreign investors sold 3.05 billion and retail investors 2.47 billion.
Big movers: AOT led in turnover, up 0.25% to 394 baht; BANPU fell 1.1% to 17.30 baht and PTT rose 2.3% to 353 baht. U led in volume, steady at 0.03 baht. EIC was the top gainer, adding 13.4% to 1.10 baht, and AS was the top loser, plunging 29.5% to 2.06 baht.
Newsmakers: Last month's Federal Reserve decision not to increase interest rates was a "close call", supporting views that a move could come in December, according to minutes of the September meeting. That view was reinforced on Friday when Fed Chair Janet Yellen said more "aggressive" action was needed to help the US economy reach its potential.
China's exports plummeted in September on anaemic global demand, while weak imports fuelled worries about the domestic appetite. Exports sank 10% year-on-year in September to US$184.5 billion, while imports fell 1.9% to $142.5 billion.
China's producer prices unexpectedly rose 0.1% in September, the first gain in nearly five years thanks to higher commodity prices, welcome news for the government as it struggles to whittle down a growing mountain of corporate debt.
Transport Minister Arkom Termpitayapaisit said he would soon submit a proposal for three double-track rail projects. The routes are from Lop Buri to Pak Nam Pho, covering 148 kilometres worth 24.8 billion baht, Nakhon Pathom-Hua Hin (165km, 20 billion baht) and Hua Hin-Prachuap Khiri Khan (90km, 10.3 billion baht).
Authorities are preparing to sign about 100 billion baht worth of contracts for public works under the fiscal 2017 budget to ramp up public spending to spur the economy.
The State Railway of Thailand is considering opening bids for commercial development of land plots worth 9 billion baht at Bang Sue Grand Station by March 2017.
The cabinet approved a proposal to overhaul the sugar production and distribution system for the first time in three decades to ensure fairness and avoid being challenged by Brazil at the WTO. The restructuring will revoke the 70-30 profit-sharing system, which will require cancelling quotas and floating domestic sugar prices.
The Digital Economy and Society Ministry plans to move all satellite assets after their concessions expire to a planned national telecom infrastructure fund. The concessions for Thaicom 4, 5 and 6 will end in 2021. Thaicom 6 could extend its lifespan for eight years past 2021, while discussions are under way for Thaicom 7 and 8 to come under a concession regime instead of licences.
The SET will fail to reach its target of 190 billion baht in additional market capitalisation from initial public offerings (IPO) this year. The main cause is delays in big offerings worth 100 billion baht, including Osotspa and Bangkok Commercial Asset Management, mainly because of financial reporting requirements. The delayed deals have been rescheduled to the first half of next year.
Thai Union Group Plc (TU), the world's biggest producer of canned tuna, has bought a 25% share in Red Lobster Seafood Co from Golden Gate Capital, in a deal worth $575 million. Red Lobster is the world's largest seafood restaurant chain with 700 branches in the US, Europe and Japan.
Ticon Industrial Connection Plc, a developer of factories and warehouses, has begun the process of selling 735 million shares to Frasers Property Holdings Thailand Co, a subsidiary of Singapore-listed Frasers Centrepoint Ltd. The private placement is worth 13.2 billion baht.
Kasikornbank delivered a 7.3% year-on-year increase in net profit in the third quarter to 10.9 billion baht, largely from higher investment gains and lower impairment charges.
WHA Corp Plc, the country's largest warehouse developer, aims to more than double its market capitalisation to 100 billion baht in 2019 through earnings growth. The company, which owns the lion's share of Hemaraj Land and Development, had a market value of 46.7 billion baht as of Friday, up 590% from its IPO valuation of 6.76 billion four years ago.
TRIS Rating has downgraded the company rating of Nation Multimedia Group (NMG) to D. The move follows NMG's failure to repay or roll over outstanding bills of exchange worth 100 million baht that came due on Oct 12.
PTT Plc is preparing to increase its five-year capital expenditure budget, expecting to spend more on innovations to generate additional sustainable revenue for the country's largest energy group.
Coming up this week: Thai banks will continue to report third-quarter earnings, followed by a handful of other SET blue chips.
US industrial production and euro-zone inflation for September will be released today.
US inflation for September, Chinese third-quarter GDP and September retail sales are available on Wednesday.
Stocks to watch: Bualuang Securities expects stocks that will outperform the market in the third quarter are PTT, TOP, PTTGC, IVL, IRPC, BCP, EGCO, TPCH, BH, RJH, CPF, GFPT, TFG, TACC, JASIF, KCE, CPALL and BJC. It also forecast that auto parts, media, hotel and retail sectors would underperform due to poor earnings prospects.
DBS Vickers Securities' top picks are ADVANC, INTUCH, TMT and JASIF. It also recommends high-yielding dividend plays inlcuding DIF, CPNRF, LHHOTEL, AP, PS, LH, SIRI, SC, BCP and TCAP.
Technical view: KTB Securities (Thailand) tips support at 1,450 with resistance at 1,506 points and Tisco Securities sees support at 1,430 and resistance at 1,500 points.
