Market Watch

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Market Watch

Economy May 21, 2018 01:00

By Special to The Nation

Select stocks with sound fundamentals

  THERDSAK THAVEETEERATHAM

Executive Vice President / Research

ASIA PLUS SECURITIES

Although foreign holdings of Thai stocks have come below the should-be level – as of April 2018, foreign holdings stayed at 23.60 per cent – based on the current situation there are no signals for diverse movement of foreign capital. The 10-year US bond yield is 0.30 percentage point higher than the 10-year Thai bond yield, which has encouraged capital to move to US dollar-denominated assets and, as a result, has prompted the greenback to appreciate and the baht to depreciate.

Given its market capitalisation at higher than Bt17.5 trillion, if the Thai stock market finds no capital support, its rise is expected to be limited.

Fundamentally, the Thai stock market is strong, reflecting higher-than-expected first-quarter net profit of Bt285 billion, up 11.2 per cent quarter on quarter but down 1.93 per cent year on year. The first-quarter net profit accounts for 26 per cent of estimated net profit for the whole year. There is a higher possibility for this year’s estimated earnings per share of Bt110.

If the market price-to-earnings ratio at 16 times is believed as the strong base and the SET Index drops below 1,750 points, long-term investors should gradually accumulate stocks. Stock picks are: AMATA (fair Value@Bt35.70) for estimated gains from likely higher land prices in the Eastern Economic Corridor (EEC) areas after the enforcement of the EEC bill; BANPU (FV@Bt25.60) for its laggard stock price and indirect benefits from high crude price.

PRAKIT SIRIWATTANAKET

Vice President

KASIKORN SECURITIES

Aside from the China and US trade issues, the Thai stock market has been pressured by capital outflows from emerging-market countries. This week will see several positive factors, particularly local ones to unlock the stock market.

Today: First-quarter GDP growth. Based on the consensus, GDP growth is forecast at 4 per cent. KS Research projects it at 4.2 per cent.

Wednesday: The Constitutional Court will deliver its ruling on whether or not the bill on the selection of senators goes against the charter. If the final ruling says that the bill is not against the Constitution, markets will expect the election to take place early next year and the SET Index will sharply rise in response. On the same day, the court will also discuss the bill on the election of MPs and the final ruling is expected on May 30.

If both bills are ruled as not against the Constitution, the bill on the selection of senators is expected to come into force in early September and the bill on the election of MPs is expected to take effect in November. Then, the EC will organise the election. If it takes 120 days to organise the elections, the polls are likely in February-March 2019.

Based on KS Research’s coverage of 97 listed companies (who make up 72 per cent of market capitalisation), their net profit totals a combined Bt227 billion, +5.9 per cent year on year and +12.3 per cent quarter on quarter, about 7.6 per cent higher than KS Research expected and 5.4 per cent higher than consensus. Finance, hospital, communication, property, and utilities groups recorded higher-than-estimated net profit for the quarter. Although second-quarter market profit will be pressured by the banking and tourism sectors, it will be offset by the energy and export sectors. Therefore, the market profit is estimated to expand. Therefore, consensus is expected to revise up this year’s estimated earnings per share from Bt109.8.

The SET Index is expected to rebound and rise to test 1,888 points in the latter half of this year. Focus on KS Research’s monthly picks with high upside such as BBL, KTB, MTC, ORI, LH, CPN, CPALL, BEAUTY, KCE, SPRC, TISCO; high dividend group with high upside such as ADVANC, INTUCH, SC, HANA and the group relying on new investment cycle such as AMATA, WHA, STEC, PYLON (KS does not cover WHA and PYLON).

McIlroy seeks to regain sparkle at puzzling PGA

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McIlroy seeks to regain sparkle at puzzling PGA

sports May 23, 2018 07:28

By AFP

Wentworth – Rory McIlroy admits to having a weird relationship with the Wentworth course but he will be hoping after a chastening experience at the Masters to rediscover a bit of his old sparkle at the PGA Championship.

The 29-year-old quadruple major champion, who looked well placed going into the final round to win an elusive Masters before his challenge fizzled out, makes his first appearance on European soil this year in a bid to win the prestigious title he claimed in 2014.

McIlroy is the major drawcard in a field that includes defending champion Alex Noren of Sweden and last year’s Race to Dubai winner Tommy Fleetwood.

“I’ve had a weird relationship with Wentworth,” said McIlroy in April.

“I had the win there back in 2014 but I haven’t really done much else.

“I think I had a top five back in 2009 but it’s been a place of high frustration for me so I’m looking forward to going back and trying to solve the puzzle again.

“At least I do have good memories there.”

The former world number one, who started the European Tour season with top three finishes in Abu Dhabi and Dubai, is encouraged that his relationship with the course could be due a change because it has undergone a revamp since he last played it.

“I haven’t played there in a couple of years (he had a rib injury last year) but from what I’ve seen, with the new grass that they’ve put in, it looks a much better golf course, a much more playable golf course,” said McIlroy.

“It was always a great golf course but sometimes it could get very tricky with some of the lies you could get.

“For them to re-grass the place and for it to look as good as it does is great, and I’m looking forward to playing it.”

 

– ‘Unreal to defend it’ –

 

McIlroy carded a sublime 66 in his final round to win in 2014 — an annus mirabilis for him as he went on to win two majors, the British Open and the US PGA — but Noren bettered that in some style last year with an incredible round of 62 after beginning the day seven strokes off the lead.

Noren, who will tee off with McIlroy and veteran Lee Westwood, admitted he also had his issues with the course prior to his victory.

“It’s by far the biggest tournament I’ve won, and it would be unreal to defend it,” said Noren.

“I think it was a shock to me to win it.

“I played it ten times before last year and I always thought the golf course was not up my alley.

“I made it, in my head, a bigger tournament than it maybe is — it’s already huge and then I made it feel even bigger.

“I’ve watched the tournament since I was little, and then you get to play it, then you make the cut for the first time, so it’s always been a big tournament in my head and it was amazing to win it.”

Winning the PGA would all but guarantee the winner a place in the European team for the Ryder Cup later this year but Fleetwood for his part says that it would be a mistake to allow that to enter one’s thoughts.

“The Ryder Cup, for any of us, is a dream,” said Fleetwood.

“I’m desperate to play in the Ryder Cup, but the more you think about it and the more you put too much pressure on yourself to make it; if I was to go out and start on Thursday with a couple of bogeys and you’re thinking about the Ryder Cup in September, it’s only going to add pressure.”

Manchester United named most valuable football team

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Manchester United named most valuable football team

sports May 23, 2018 07:23

By AFP

Manchester United may have finished second in the English Premier League this season but the club is top of the table in terms of overall value, according to a report by accounting firm KPMG on Wednesday.

The Red Devils’ overall value increased five percent compared to 2017 to more than 3.2 billion euros (£2.8 billion pounds, $3.77 billion), beating ​​Real Madrid on 2.9 billion euros and FC Barcelona on 2.8 billion euros.

“We calculate the assets of each club, if they own a stadium for example, the value of the players, but also the value of the brand or image with advertising contracts and their reach on social networks,” said Jacques Boussuge, head of sports advisory at KPMG.

Of the 32 European clubs assessed, Bayern Munich came fourth with 2.55 billion euros, Juventus were ninth on 1.3 billion euros, with Paris Saint-Germain in 11th place, with an estimated value of 1.14 billion euros.

“PSG is progressing… but it takes time and is limited by financial fair play regulations,” Boussuge said.

In total, the financial value of the 32 clubs reached an estimated 32.5 billion euros, a 9 percent increase on 2017.

Serena’s French Open seed denial stirs fresh debate

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Serena’s French Open seed denial stirs fresh debate

sports May 23, 2018 07:16

By AFP

The decision by French Open organisers not to grant Serena Williams a seeding on her long-awaited Grand Slam return has prompted renewed focus on the sport’s policy towards female players and parenthood.

“French Open is punishing Serena Williams for having a baby” read a USA Today headline, arguing an expection for the 23-time major winner should be made for Thursday’s draw.

At 36, the American is looking to regain her top form following the birth of her daughter last September. After sitting out of competition for over a year, she no longer had a ranking upon her return to the WTA circuit in March.

She has played just four matches this season across appearances at Indian Wells and Miami. But her results, far from convincing, have only been good enough to climb to 449th in the world rankings.

With a ranking so low, no player would typically even be able to take part in qualifying for the main draw. That is unless benefiting from a wildcard or using a protected ranking, which has at least allowed Williams direct entrance into the field.

It is a system that lets a player retain, for a transitional period, a former ranking upon return from a long absence — between six months and two years — due to injury, illness or pregnancy.

But it does not guarantee them a seeding, leaving Serena vulnerable to an encounter with leading title contenders as early as the first round.

At Miami, Williams ran into Indian Wells champion Naomi Osaka in her opening match and was easily beaten.

 

– ‘Grace period’ needed –

 

“She has won this title so many times (eight) that she needs protection,” Miami tournament director James Blake said after the WTA refused to alter its rules despite conceding that they would be “further reviewed” going forward.

“It’s not as if she left because of injury and lost her passion for the game,” Blake said. “She had a kid, which we should all be celebrating, so when she comes back there should be a grace period where she can still be seeded.”

Maria Sharapova also spoke up in support of her longtime rival last week.

“It’s a tough call, I would like to see that change,” Sharapova said. “I think that would be nice.”

At Wimbledon, which runs from July 2-15, the All England Club could elect to seed Serena using its unique system that favours grass-court specialists, given she is a seven-time champion.

But at Roland Garros, an event she has won three times, organisers are not ready to take such a step with the French Tennis Federation (FFT) reaffirming the seedings will reflect the latest WTA rankings.

Tournament organisers have been equally unmoved in the past when faced with similar situations.

Victoria Azarenka was unseeded at last year’s Wimbledon in her first Grand Slam since giving birth in late 2016, while Kim Clijsters was in a similar position at the 2009 US Open.

However, that didn’t stop Clijsters, who needed a wildcard just to compete in New York, from going on to lift the second of four career Grand Slam titles.

Chinese show champions form to qualify for Uber quarter-finals

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World No 5 Chen Yufei
World No 5 Chen Yufei

Chinese show champions form to qualify for Uber quarter-finals

sports May 22, 2018 20:06

By The Nation

Second seeds China dashed the hope of Malaysia to reach the Uber Cup quarter-finals after they beat the Asean nation 4-1 in their Group D second round-robin at the Impact Arena Muang Thong Thani on Tuesday.

 The defending champions have now won two straight ties and will move into the knock-out stage along with Indonesia, who also collected two wins by 3-2 over Malaysia and 5-0 over France.

China and Indonesia are sure of their quarter-final places no matter what happens in their final group game against each other on Wednesday.

World No 5 Chen Yufei was extended to three games by Soniia Cheah before toughing out an 18-21 22-20 21-18 win to give China their first point.

The world’s top double team, Chen Qingchen and Jia Yifan, brushed aside Yea Ching Goh and Soong Fie Cho 21-9 21-8 before Malaysia reduced the deficit to 2-1 as 2017 SEA Games gold medallist and world No 31 Goh Jin Wei upset world No 8 He Bingjiao 9-21 21-17 21-13.

China fought back to seal off the deal when Huang Dongping and Yu Zheng won the second doubles match against Chow Mei Kuan and Vivian Hoo 21-9 21-15 and world No 31 Gao Fangjie wrapped up the encounter by defeating the 41st ranked Ying Ying Lee 21-16 21-15.

In the men’s Thomas Cup, Thailand despite a stunning win over world No 1 Marcus Fernaldi Gideon and Kevin Sanjaya Sukumuljo by Kittisak Namdash and Nipitphon Phuangphupet , lost to Indonesia 1-4, losing a chance to reach the next round. The Kingdom’s team however will play their last tie against Canada on Wednesday.

Defending champions Denmark also successfully booked their last-eight spot after a 5-0 win over Russia 5-0 in Group D, their second win after the 5-0 demolition over Algeria on Monday.

In Group C, Japan also moved into the quarter-finals after they beat Germany 4-1.

Klopp seeks fitting finale to long road to Kiev

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Liverpool's German manager Jurgen Klopp reacts during a training session and media day at Anfield stadium in Liverpool, north west England on May 21, 2018, ahead of their UEFA Champions League final football match against Real Madrid in Kiev .
Liverpool’s German manager Jurgen Klopp reacts during a training session and media day at Anfield stadium in Liverpool, north west England on May 21, 2018, ahead of their UEFA Champions League final football match against Real Madrid in Kiev .

Klopp seeks fitting finale to long road to Kiev

sports May 22, 2018 11:09

By AFP

Liverpool manager Jurgen Klopp is quietly confident his side can upset the odds by preventing Real Madrid from claiming a third consecutive Champions League title on Saturday, to cap a stunning season engineered by the German.

Klopp’s men started their Champions League campaign in a playoff against Hoffenheim just to make the group stages back in August.

Now, after plundering 46 goals in 14 games, Liverpool have made it back to the Champions League final in Kiev for the first time in 11 years.

“I don’t want to talk about confidence, but we feel good and think we deserve to be where we are because the boys really showed up in all the different games,” said Klopp on Monday.

“It was a very exciting journey so far and now we want to bring it to the best possible end.”

By contrast, Madrid are featuring in their fourth final in five years. But Klopp believes Liverpool can compensate for their lack of experience compared to the European champions with other qualities that have characterised their run to the final.

“If there is an experienced market, they should sell it because then they would be even more rich than they are already,” Klopp added of the Spanish giants.

“Experience is very important in life but not the only important thing in life, and especially in football. It is an advantage to be more experienced, but you can level it with desire, with readiness, attitude, work rate and that is what I love in football.”

Liverpool will be back in the Champions League next season no matter the outcome in the Ukranian capital as they held on to finish fourth in the Premier League despite a late-season blip in form as the physical toil of their European exertions showed.

 

– Refreshed and ready to run –

 

Klopp took his squad on a warm weather training camp in Marbella last week.

And he believes a two-week break between their 4-0 thrashing of Brighton to ensure a top-four finish and the final is the perfect preparation to ensure Liverpool’s high-energy style can be fully utilised on Saturday.

“It’s a very good moment for the club, for us, for the boys because we have finished the season in the best way we could,” he added.

“It felt really good and then having the time to prepare the game is really good. We could do a lot of things and didn’t have to rush it or compress it into two or three sessions. It was good recovery time.”

Liverpool defender Dejan Lovren is one of Klopp’s many success stories this season as the Croatian has improved significantly since being paired with club record £75 million ($100.6 million) signing Virgil Van Dijk in January.

“I feel personally much more confident when you know you have a really good partner next to you and he showed already at Southampton that he is one of the best defenders in the Premier League,” Lovren said of Van Dijk’s influence.

And Lovren urged Liverpool not to miss out on what could be a once-in-a-lifetime opportunity.

“We have the biggest chance in our lives. For some of us, maybe it’s the only one,” he added.

“We have something to catch, (for the) whole squad it is the first time in the final of the Champions League. We know what we are playing for and how hard it was from day one.”

Saudis step up arrests of women’s rights advocates, campaigners say

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Saudis step up arrests of women’s rights advocates, campaigners say

Breaking News May 23, 2018 06:51

By Agence France-Presse
Dubai

Saudi authorities have widened a crackdown on women’s rights advocates, detaining at least three more activists a month before the kingdom lifts its decades-old ban on women drivers, campaigners said Tuesday.

Saudi authorities on Saturday announced the arrest of seven people, mostly identified by rights groups as women who have long campaigned for the right to drive and to end the conservative Muslim state’s male guardianship system.

Amnesty International told AFP the number of detainees has risen to 10, including at least seven women, while the Gulf Centre for Human Rights and another Saudi activist said the number stood at 12.

“Despite international outcry and calls for the release of these activists, they still remain detained for their peaceful human rights work,” said Samah Hadid, Amnesty International’s Middle East director of campaigns.

“Saudi Arabian authorities cannot continue to publicly state they are dedicated to reform while treating women’s rights campaigners in this cruel way.”

The detainees include three generations of activists such as 28-year-old Loujain al-Hathloul — who was also held in 2014 for more than 70 days for attempting to drive from neighbouring United Arab Emirates to Saudi Arabia — and Aziza al-Yousef, a retired professor at Riyadh’s King Saud University.

Also arrested, campaigners say, was Madeha al-Ajroush, a psychotherapist in her 60s, well known for being part of a group that mounted the first Saudi protest movement in 1990 for the right to drive.

The Gulf Centre for Human Rights voiced concern that Hathloul, one of the most outspoken activists, was being held incommunicado, while other campaigners said the detainees were without any access to lawyers and their whereabouts were unknown.

Saudi government officials did not immediately respond to requests for comment.

Without naming those detained, authorities have accused them of “suspicious contact with foreign parties”, providing financial support to enemies and attempting to undermine the kingdom’s “security and stability”.

State-backed media branded them traitors and “agents of embassies”.

‘No country for bold women’

The crackdown has cast a shadow on the kingdom’s much-publicised liberalisation drive launched by powerful Crown Prince Mohammed bin Salman, who recently undertook a global tour aimed at reshaping his kingdom’s austere image.

The self-styled reformer has sought to break with long-held restrictions on women and the mixing of the genders, with the decades-old driving ban on women slated to end June 24.

“It is clear that underneath all the PR hype and spin, Crown Prince Mohammed bin Salman’s reforms exclude human rights activism,” Hadid said.

“We continue to call for the immediate and unconditional release of all activists still being detained solely for their human rights work.”

In a scathing statement, the New York-based Committee to Protect Journalists demanded the release of detainee Eman al-Nafjan, a linguistics professor and mother-of-three who ran the popular “Saudiwoman” blog.

“Crown Prince Mohammad Bin Salman recently toured the West to project the image of a modernist and reformer,” CPJ deputy executive director Robert Mahoney said in the statement.

“But the moment he’s back home Saudi authorities revert to old habits — stifling dissent and detaining critical journalists. Writing about the place of women in Saudi society is not a crime.”

Those arrested had campaigned for the lifting of the driving ban and also against the guardianship system requiring women to obtain permission from their fathers, brothers, husbands or sons for a host of life decisions.

“The kingdom’s small community of liberal activists is reeling and struggling to make sense of the events,” the Washington-based Project on Middle East Democracy said in a report titled “Saudi Arabia: No country for bold women”.

“The arrest of so many well-known figures seems an ominous sign that the government is determined to wipe out what remains of Saudi civil society.”

Why birds don’t have teeth

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Why birds don’t have teeth

ASEAN+ May 23, 2018 06:47

By Agence France-Presse
Paris

Why did birds lose their teeth? Was it so they would be lighter in the air? Or are pointy beaks better for worm-eating than the jagged jaws of dinosaur ancestors?

Actually, birds gave up teeth to speed up egg hatching, a research paper published Wednesday suggests, challenging long-held scientific views on the evolution of the toothless beak.

Compared to an incubation period of several months for dinosaur eggs, modern birds hatch after just a few days or weeks.

This is because there is no need to wait for the embryo to develop teeth — a process that can consume 60 percent of egg incubation time, said researchers Tzu-Ruei Yang and Martin Sander from the University of Bonn.

While in the egg, the embryo is vulnerable to predators and natural disasters, and faster hatching boosts survival odds.

This would be a concern for dinos and birds — all egg layers. In mammals, embryos are protected inside the mother.

“We suggest that (evolutionary) selection for tooth loss (in birds) was a side effect of selection for fast embryo growth and thus shorter incubation,” Yang and Sander wrote in the journal Biology Letters.

Previous studies had concluded that birds — living descendants of avian dinosaurs — lost their teeth to improve flight.

Brooding over it

But this did not explain why some non-avian dinosaurs in the Mesozoic era had independently evolved similar toothless beaks, said the duo.

Other studies had concluded that beaks were better for eating bird food.

But some dinosaurs with a very different, meat-eating diet had also discarded teeth in favour of pointed beaks.

Yang and Sander said their breakthrough came from a study published last year, which found that the eggs of non-flying dinosaurs took longer to hatch than previously thought — about three to six months.

This was because of slow dental formation, which researchers analysed by examining growth lines — almost like tree rings — in the fossilised teeth of two dinosaur embryos.

Faster incubation would have been aided by early birds and some dinos taking to brooding their eggs in open nests rather than burying them as of old, said the research team.

They conceded their hypothesis was not consistent with toothlessness in turtles, which still have a long incubation period.

Trump administration moves to lift ban on bear baiting in Alaska

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Trump administration moves to lift ban on bear baiting in Alaska

ASEAN+ May 23, 2018 06:44

By Agence France-Presse
Washington

The Trump administration on Tuesday presented a plan to roll back Obama-era rules preventing hunters in some protected zones in Alaska from luring bears with bait including bacon and donuts, and using spotlights at den sites to hunt black bear cubs and sows.

Under former president Barack Obama the National Park Service (NPS) in 2015 had prohibited a number of practices — considered cruel and harmful by animal protection groups — on national preserves in Alaska.

In addition to baiting and use of spotlights, banned methods include hunting wolves and coyotes during their denning season, the use of dogs to hunt bears, and the killing of swimming caribou from motor boats.

The NPS in a statement said reversing the ban on those practices would “establish better consistency” within the state of Alaska, where such methods are allowed in areas not under federal protection.

“This proposed rule will reconsider NPS efforts in Alaska for improved alignment of hunting regulations on national preserves with State of Alaska regulations, and to enhance consistency with harvest regulations on surrounding non-federal lands and waters,” the park agency’s regional director Bert Frost said in the statement.

The proposed reversal, published Tuesday in the Federal Register, is open for public comment for two months, after which the NPS will make a final ruling.

The Republican Congress has already reversed some regulations adopted under a Democratic majority, including in April 2017 when it lifted a ban on hunting bears in Alaska from a helicopter or airplane.

The Trump administration has made a habit of sparking outrage among animal welfare organizations.

In November 2017 the US government controversially reauthorized American hunters to import lion and elephant safari trophies from Zimbabwe and Zambia.

And in March 2018 Trump’s new high-level council dubbed the “International Wildlife Conservation Council” met for the first time.

The panel — created and chosen by Interior Secretary Ryan Zinke, a hunter himself — is chaired by a coal mining tycoon known for his home jammed with stuffed big game animals.

The council is otherwise comprised of big game hunters and professional hunting guides.

Royal wedding guests cash in on official goody bag

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  • Photo : EPA-EFE

 Royal wedding guests cash in on official goody bag

ASEAN+ May 22, 2018 17:35

London – Fancy getting your hands on one of the goody bags given to public guests at Saturday’s wedding of Prince Harry and Meghan Markle? Well you made need to break the piggy bank.

    One of the canvas souvenir bags, decorated with the initials of the bride and groom, has already received bids of 50,000 pounds (57,000 euros) on auction website e-bay, with two days of bidding still to go.

The pack contains a marriage order of service booklet, a commemorative chocolate coin, wedding labelled spring water, a royal wedding fridge magnet and a tub of shortbread, made especially for Saturday’s wedding day.

Some of the bags given to the 2,640 members of the public lucky enough to receive an invite inside the grounds of Windsor Castle were going for thousands of pounds within hours of being put up for sale online.

One of the vendors described the lot as “a piece of history and Royal Wedding memorabilia given to celebrate a very special day.”

Among the invitees rubbing shoulders with royals and A-List celebrities were 1,200 members of the British public, 200 members of charities supported by the couple, 610 people from the local Windsor community, around 100 students from nearby schools and 530 royal staff.//AFP