Recap: Asian stocks retreated last week, weighed down by negative factors including downbeat Chinese factory data, signals from Federal Reserve Chair Janet Yellen that an interest-rate increase this month is all but certain, and the smaller-than-expected scale of new stimulus by the European Central Bank. In Thailand, rumours in social media that the European Union (EU) had imposed sanctions against the country triggered panic selling.
The SET Index moved in a range of 1,325.86 and 1,369.99 points and closed at 1,333.57, dipping 2.2% from the previous week, in moderate turnover averaging 38.72 billion baht a day. Brokers were net sellers of 1.8 billion baht, foreign investors sold 3.92 billion and local institutions 504.8 million, while retail investors were net buyers of 6.23 billion.
Big movers: New MAI entrant T.A.C. Consumer (TACC) rose 25% above its 2.88-baht IPO price to 3.60 baht on its first day on Wednesday and closed the week at 4.14 baht. The snack maker Tao Kae Noi Food & Marketing (TKN) rose 43.75% from its 4-baht IPO price on Thursday to 5.75 baht, and closed on Friday at 6 baht.
DTCI was the top gainer, adding 13.5% to 29.50 baht. Top loser BTC fell 28% to 18 satang. JAS led in volume and was the second most active in turnover, falling 2.8% to 4.70 baht. Leading in turnover was CPALL, diving 9.5% to 43 baht after senior executives were fined for insider trading.
Newsmakers: Janet Yellen said she was "looking forward" to a US interest rate rise that would be seen as confirmation of the economy's recovery. She said job data suggested the labour market was healing even if not yet at full strength, a sentiment reinforced by figures on Friday showing employers added 211,000 new positions in November, exceeding forecasts of 200,000, while wages rose.
Manufacturing activity in China hit a three-year low in November, with a Purchasing Managers Index (PMI) of 49.6 in November, the fourth straight month of contraction.
The International Monetary Fund will add the Chinese yuan to its Special Drawing Rights (SDR) basket alongside the dollar, euro, pound sterling and yen. The yuan will have a 10.9% share in the basket, effective from Oct 1, 2016.
The European Central Bank reduced its key rate to -0.3% from -0.2%, but the market had expected a deeper cut to compel banks to lend. As well, it chose not to expand the amount of its monthly bond buying but to extend the programme by six months to March 2017.
Thailand's current account surplus hit a 10-month high in October, propelled largely by a sharp decline in import value and burgeoning tourism. The October figure of $5.2 billion brought the surplus for the year to $26.2 billion.
Consumer prices fell for the 11th straight month in November driven by lower retail oil, pork and egg prices because of higher supply. Headline inflation fell 0.97% year-on-year, up from the 0.77% drop in October. From January to November, consumer prices dropped 0.9% from the same period last year.
Consumer confidence rose for a second straight month in November, driven by government stimulus measures, higher economic growth prospects and low interest rates. The consumer confidence index rose to 74.6 points from 73.4 in October and 72.1 in September.
The cabinet has approved action plans for 20 big-ticket infrastructure projects worth a combined 1.79 trillion baht. Some have been on the books for years but never got off the ground because of endless political unrest.
The US Federal Aviation Administration (FAA) downgraded Thailand's aviation safety standard status to Category II in response to a "red flag" issued earlier this year by the UN-based International Civil Aviation Organisation (ICAO). The downgrades reflect deficiencies that international bodies have been warning about for a decade, which successive governments did nothing to address.
Thai Union Group has abandoned its planned $1.51-billion acquisition of California-based Bumble Bee Seafood, which had been under close scrutiny by US competition regulators.
CP All chairman Korsak Chairasmisak, two vice-chairmen and a legal adviser to the company's board have been fined a total of 33.33 million baht for insider trading ahead of the CP All deal to buy Siam Makro Plc.
Airports of Thailand (AOT) said net profit in fiscal 2015 to Sept 30 jumped 53.3% to 18.7 billion baht on an upturn in air traffic and tourism. Revenue rose 15.1% year-on-year to 45.8 billion baht while expenses fell 8.4% to 22.4 billion.
Indorama Ventures (IVL) has made its first move into India, acquiring 100% ownership of the polyethylene terephthalate (PET) producer Micro Polypet Ltd (MicroPet) and two subsidiaries with three factories in total.
Central Pattana (CPN), the property arm of Central Group, plans to develop nine condominiums worth a total of almost 5 billion baht over the next five years. Each high-rise condo will have about 400 units.
Krungthai Card Plc (KTC) expects flat profit growth next year due to investment in its business transformation plan, a higher marketing budget and lower revenue after cutting debt collection fees. It estimates 2016 net profit will equal the 2 billion baht projected for this year.
Coming up this week: Shares of Star Petroleum Refining (SPRC) will begin trading tomorrow (IPO price 9 baht) when the market reopens after a holiday.
The State Railway of Thailand will hold an e-auction tomorrow for its 185-kilometre double-track rail line from Nakhon Ratchasima (Jira) to Khon Kaen with a budget of 26 billion baht.
November trade data for China and Japan are due tomorrow, along with and euro-zone Q3 GDP.
The European Aviation Safety Agency (EASA) will announce the results of its review of Thai aviation standards on Thursday, which is a market holiday. A downgrade similar to that issued by the US FAA is possible, with substantial implications for tourism and an impact on the market when it reopens on Friday.
Stocks to watch: Tisco Securities expects new stocks to be added to the SET50 and SET100 indices will be SCCC, MTLS, GSPC and WORK. Its monthly recommended stocks are AOT, CK, GPSC, JWD, SCCC, TCAP, TU and WORK.
Finansia Syrus Securities forecasts that BAY, BIGC, BLA, SCCC and TASCO could be added to the SET50, while potential deletions are BMCL, CBG, JAS, SAWAD and THCOM. For the SET100, potential additions include BAY, BIGC, BLA, EPG, GL, GPSC, IFEC, MTLS, PLANB, PLAT, PTG, SCCC, SCN, SUPER, TASCO, VNG and WORK. Likely deletions are ASP, BJCHI, CKP, DEMCO, ERW, GFPT, GLOBAL, LOXLEY, MC, MONO, PSL, SAPPE, SF, SGP, TICON, U and UV.
Country Group Securities recommends EPG as a speculative buy on improving Q4 earnings.
Technical view: Tisco Securities sees support at 1,300 with resistance at 1,400. Bualuang Securities pegs support at 1,300 and resistance at 1,430.
