The Stock Exchange of Thailand (SET) Index is expected to rise to the resistance level between 1,708 and 1,710 points on Thursday after the US Federal Reserve signalled it would not raise the interest rate immediately, Krungsri Securities said.
It added that mass buy-ups of company shares that are expected to grow based on their business turnover last year would help boost the index.
“However, uncertainty over tension between Russia and Ukraine would make the index volatile,” Krungsri Securities predicted.
It recommends the purchase of the following companies’ shares as an investment strategy:
• EA, GPSC, Amata, WHA, AH and Stanly, which will benefit from the government’s electric vehicle promotion package.
• BBL, KBank, KTB, SCB, TTB, BLA and THREL, which would gain from news of a US interest rate hike.
• IVL, SPRC, Gulf, Banpu, TU, CPF, Spali, ORI, WHA, Amata, HMPro, CPN, CRC, BLA, NER, Itel, XO, Ask, UBE, Forth, TH and SNNP, that are expected to grow based on their business turnover last year.
The SET Index closed at 1,701.45 on Tuesday, up 16.76 points or 0.99 per cent. Transactions totalled 91.60 billion baht with an index high of 1,702.74 and a low of 1,687.18. The index was closed on Wednesday for Makha Bucha Day.
Thai shrimps have been affected by early mortality syndrome (EMS), which has severely dented yields since 2012, leading to dependence on imports, the Thai Shrimp Association said.
The association’s president, Ekapoj Yodpinit, said that
Thailand used to produce more than 630,000 tons of shrimp, but now produces only 280,000 tons worth 43 billion baht. The output was not enough to meet the needs of factories, he said, as a result shrimp has to be imported before it is processed for export.
The reduced output has led to loss of exports worth more than 500 billion baht, or an average loss of 100 billion baht per year for the past decade.
Thailand was the No. 1 shrimp exporter, but has now slid to sixth place. Ecuador, India and Vietnam have become major exporters.
The global shrimp market still acknowledges and has faith in the quality of Thai shrimp, said Ekapot.
The Thai Shrimp Association and partners in the shrimp industry have proposed to the Ministry of Agriculture and Cooperatives to formulate guidelines for the development of the aquaculture industry to ensure sustainability for the country.
The association wants the Department of Fisheries to urgently research and find cures for three major diseases – EMS, white faeces, and red and white spots – which are serious problems that destroy shrimp farms.
The department has to research to produce disease-resistant young shrimp, an effective diet, and organise an appropriate raising system.
Shrimp disease problems have resulted in an increase in the cost of production by about 160 baht per kg (100 shrimps), close to the selling price, he said
The association expects a suitable output of 400,000 tons per year.
If the plans succeed, the shrimp output will be sufficient to meet the demands of Thai processing plants within two years. It will free the country from the need to import shrimp and farmers would be able to sell at a satisfactory price, said Ekapot.
The Thailand Convention and Exhibition Bureau (TCEB) is organising the “Thailand International Air Show” at U-Tapao International Airport in Rayong in 2027 in a bid to promote the country as an Asean aviation hub and provide the Eastern Economic Corridor a fillip, the bureau announced on Tuesday.
The project was presented to the Eastern Economic Corridor Office of Thailand (EECO) as an organisation in charge of the development of U-Tapao Airport and the Eastern Aviation City.
TCEB president Chiruit Isarangkun Na Ayuthaya, as chairman of the event, said it would be the country’s first international air show and promote Thailand as an exhibition centre and aerospace trade hub.
He said the show would be a large-scale international event and become a driving force of Thailand’s high-tech industry.
“In addition, this event promotes Thailand as one of the world’s leading manufacturers and exporters of aircraft parts,” he pointed out.
Chiruit Isarangkun Na Ayuthaya
He explained that Thailand exported aircraft parts and equipment worth as much as US$3.18 billion (THB104.6 billion), citing information from the Board of Investment in 2018.
“Entrepreneurs will have the opportunity to participate in the development of the world’s aerospace industry,” Chiruit said.
He added that the event would be organised in 2027 without worries over the Covid-19 situation.
Meanwhile, TCEB senior vice president of Strategic Marketing and Business Development Nichapa Yoswee said that apart from the role to drive the MICE (meetings, incentives, conferences and exhibitions) industry to develop the economy through innovation and distribute income to all sectors, the TCEB also acts as a “national bidder” to organise or attract world-class events in line with Thailand 4.0 and the 20-year national strategic plan.
She said the TCEB is promoting the air show under the concept of “The Future of Aerospace”, which emphasises innovation technologies to reflect Thailand 4.0 across all sectors, including civil, commerce and defence.
Nichapa went on to say that the idea and concept of organising a world-class trade show in Thailand came after the TCEB responded to the industry 4.0 policy in 2017.
“The TCEB began a study on air shows in 2018 in order to assess the feasibility and set up a cooperation framework for organising aviation trade shows in Thailand,” she explained. “In addition, public hearings and meetings with relevant agencies were organised.”
The bureau has invited the EECO, U-Tapao International Airport, the Royal Thai Navy and Pattaya City to become a part of the global event.
TCEB hopes to elevate the aviation and logistics industries and prepare MICE businesses in the area to support the international air show through a “Road to Air Show” project by initiating a trade fair and MICE industry conference titled “Aviation & Log-In Week”, which is a combination of shows, conferences and mega events to increase participation opportunity, create business or industry value and stimulate the economy.
“The TCEB expects that from 2023 to 2027, there will be 28 new and continuous events in the EEC area as part of the Aviation & Log-In Week, including the Thailand International Air Show. These events would generate a positive economic impact to Thailand of more than 8 billion baht during that period,” Nichapa added.
EECO special adviser of Infrastructure Development Chokchai Panyayong said the EEC appreciates the TCEB idea of wanting to push for an aviation trade show and world-class logistics, which will promote the development of technology, products, services and labour, as well as increase the competitiveness of the Thai aviation industry and related industries to advance to international standards.
He said the project is in line with the U-Tapao Airport Development Policy and the Eastern Aviation City in the EEC to elevate Thailand into an Asean aviation hub.
Chokchai explained that in 2019, Thailand’s six major airports could accommodate more than 140 million passengers per year, with up to 450,000 departure flights per year across the world.
The country as a whole has a high demand for aircraft maintenance services, with the value exceeding 36.5 billion baht per year. The Civil Aviation Authority of Thailand meanwhile has registered 679 aircraft in the country.
“In response to the government’s strategy to boost the aviation sector and logistics in accordance with the national development plan, the EEC is driving Thailand’s development and increasing its potential to become a fully integrated aviation hub,” he said.
“As a result, one of the country’s major infrastructure projects is the building of U-Tapao International Airport and the Eastern Aviation City. Maintenance repair and overhaul [MRO] as well as the manufacturing of parts and other associated components will be incorporated within the area to establish the groundwork for the development of a comprehensive aviation sector,” Chokchai said.
He said U-Tapao International Airport and the Eastern Aviation City, MRO and an aviation technical zone, including a high-speed rail linking the three airports and the third phase of the Laem Chabang Port and Map Ta Phut Industrial Port development, would be completed between 2025 and 2026.
“The Thailand International Air Show will be a stepping stone for the aviation industry to realise its immense potential to become more than a tourism destination but also an aviation hub or a one-stop service for aviation businesses,” Chokchai added.
Pattaya Mayor Sontaya Kunplome said the Thailand International Air Show is a great response to Neo Pattaya’s strategy for a smart city – the centre of the economy, investment and transportation in the Eastern region.
He said U-Tapao International Airport would be another significant airport that would meet the new normal lifestyle in terms of tourism, business and housing.
Sontaya went on to say that Pattaya City’s new age, like that of other world-class international cities, will be enhanced by digital transformation technology with greater convenience for its residents, business people and tourists.
“This effort will help improve the economy at the national level, resulting in revenue to residents and entrepreneurs,” he said. “Pattaya City is proud to be Thailand’s representative city for hosting world-class events, such as this air show.”
Many believe the event will contribute to the development and progress of Thailand’s communities, society, commerce, industry, and economy as an Asean aviation hub.
Output of rubber is expected to increase by 1.82 per cent in 2022 over the previous year, the Rubber Authority of Thailand (RAOT) said.
Farmers will produce approximately 4.9 million tons of rubber, the RAOT said.
The volume of rubber exports in 2022 is expected to be approximately 4.21 million tons, an increase of 2.03 per cent from the previous year.
In the first quarter, rubber exports are expected to be approximately 1.10 million tons, an increase of 4.29 per cent, while rubber stocks are likely to decline, which is in keeping with the trend of decreasing stock in Qingdao, China. It is one of the factors helping boost exports.
The Association of Natural Rubber Production Countries (ANRPC) estimates global rubber production at approximately 14.55 million tons and the consumption at 14.39 to 14.82 million tons. Rubber consumption is forecast to expand by 2-5 per cent, so production in 2022 could be less than the demand for rubber.
This year’s rubber support factor include season and weather conditions and the Covid-19 epidemic, which led to more need for rubber gloves and PPE suits, the ANRPC forecast.
Meanwhile, challenges that may hurt the demand for rubber include the shortage of semiconductors, which affect the production and distribution of cars, container shortages, high transportation costs and slow clearances that affect the supply chain.
Tuesday’s reduction in diesel excise tax will cost the government around Bt17 billion in lost revenue, according to Finance Minister Arkhom Termpittayapaisith.
Arkhom told reporters the Cabinet-approved cut of Bt3 per litre for three months would see Excise Department revenue drop by Bt5.7 billion per month.
The minister said the Bt3 cut would be applied to 100-per-cent diesel while the reduction for biodiesel would be calculated on its ratio of pure diesel.
The Energy Ministry would cap the retail price of diesel at Bt30 per litre until May, after which global oil prices are expected to ease, he said.
The government expects loss of fuel tax revenue to be offset by higher income from other taxes as the economy improves, he added.
Arkhom said the Oil Fund is currently facing liquidity issues as it transforms from a legal entity under the Energy Ministry to a public organisation. However, once the switch is completed, the fund will be able to borrow up to Bt3 billion to solve liquidity problems, he said.
Deputy Finance Minister Santi Promphat denied the tax cut was a result of political pressure, saying it was approved to ease people’s burden from rising living costs.
Transport operators protesting the high cost of diesel had threatened to block Bangkok roads unless the price was reduced.
The Cabinet on Tuesday approved subsidies of Bt70,000 -Bt150,000 on purchases of electric vehicles as part of a package to promote Thailand’s EV manufacturing industry.
The package was prepared by the National Electrical Vehicle Policy Board (EV board) and proposed to Cabinet by the Energy Ministry.
A subsidy of Bt18,000 on each EV motorcycle purchase was also approved.
Meanwhile the excise tax on EV cars was cut from 8 per cent to 2 per cent and on EV pickups from 8 per cent to zero.
The import tariff on complete EV cars was reduced to 40 per cent, 20 per cent and 0 per cent, depending on the engine size, until 2023.
The Cabinet also resolved to lift import tariffs on nine items of CKD (completely knocked down) EV cars.
To qualify for the reduced import tariffs, manufacturers must build three EV vehicles in Thailand for every two imported until 2024. The deadline could be extended to 2025.
If the retail value of each EV imported is under Bt2 million, manufacturers can build any EV model to compensate. However, they must compensate for importing pricier models by building the same models in Thailand.
The Thai baht opened at 32.44 to the US dollar on Tuesday, strengthening from Monday’s close of 32.53, the highest in five months.
The Thai currency is likely to move between 32.35 and 32.55 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
He said the baht may stop strengthening and swing sideways because it has risen beyond the estimated support level far too much due to Thai stocks and bonds transactions from foreign investors and the selling of gold.
He said the US Federal Reserve is likely to hike the interest rate more than expected and the conflict between Ukraine and Russia will pressure the market into a risk-off state and push the dollar to strengthen.
Poon said these factors will stop the baht from strengthening in the short term.
He suggested speculating on foreign investors’ transactions of Thai assets and the direction of gold price. He said if investors continue selling those assets, it will cause the baht to strengthen.
The support level for the Thai currency will be from 32.40 – a level importers are waiting for so they can purchase dollars, while its resistance level will lie between 32.80 to 33 – a level eyed by exporters so they can offload their dollars, he said.
The Stock Exchange of Thailand (SET) Index is expected to move between 1,675 and 1,680 points on Tuesday amid worries of Russia invading Ukraine, Krungsri Securities said.
Uncertainty over the US Federal Reserve’s move to raise the interest rate to combat rising inflation would also pressure the index, it said.
“However, higher oil price and mass buy-ups of company shares that are expected to grow based on their business turnover last year would help boost the index,” Krungsri Securities said.
It recommends the purchase of the following as an investment strategy:
• PTTEP, TOP, PTTGC, IVL, SPRC and BCP will benefit from the rising price of oil and gross refining margin.
• BBL, KBANK, KTB, SCB, TTB, BLA and THREL will benefit from news of the US interest rate hike.
• IVL, TOP, SPRC, GULF, BANPU, TU, CPF, SPALI, ORI, WHA, AMATA, HMPRO, CPN, CRC, BLA, NER, ITEL, XO, ASK, UBE, FORTH, TH and SNNP that are expected to grow based on their business turnover last year.
The SET Index closed at 1,684.69 on Monday, down 14.51 points or 0.85 per cent. Transactions totalled 86.37 billion baht with an index high of 1,694.19 and a low of 1,680.83.
Thailand’s Commerce Ministry donated 10 tonnes of Thai jasmine rice to poor women and children in China’s Fujian province recently in a bid to raise awareness of Thai rice and penetrate the Chinese market.
Phusit Ratanakul, director-general of the Department of International Trade Promotion (DITP), said the activity was organised by the department’s Fujian branch in cooperation with the Xiamen Mifeng C&O Trading company.
Bags of Golden Rabbit brand Thai rice were delivered to two women’s and children’s foundations in Fujian, which will then distribute the rice to underprivileged people in Xinjiang, Ningxia, Tibet as well as within Fujian province.
Phusit said this CSR (corporate social responsibility) activity will take Thai jasmine rice to remote areas in line with DITP’s strategy to make inroads into the Chinese market.
He said DITP has also assigned Thailand’s trade envoy in Xiamen to negotiate the purchase of Thai rice with importers and supermarket networks.
Nannapas Ngamman, director of the DITP office in Xiamen, said the office is using CSR activities to promote Thai jasmine rice, which was once again named the best jasmine rice in the world last year.
DITP has also launched a campaign advising consumers to identify authentic Thai jasmine rice by looking out for the special green logo with two ears of rice.
During the CSR event, Nannapas also chatted with a businesswoman from Ningde who expressed interest in importing Thai jasmine rice and exporting local food products to Thailand in return.
Meanwhile, Phusit quoted Guo Xiao Hui, managing director of Xiamen Mifeng C&O Trading, as saying that his company has only imported 5,000 tonnes of jasmine rice over the past 12 months due to high shipping costs and lack of containers. The company plans to import some 8,000 tonnes of Thai jasmine rice this year.
Meanwhile, Yang Li Qing, chairperson of one of the foundations, said the donation has strengthened bilateral ties. She also thanked the Golden Rabbit company, Xiamen city and the Thai government for extending help to underprivileged people.
Super Bowl commercials are more expensive than ever before but they are also offering a better deal for advertisers, according to CNN Business.
Super Bowl LVI broadcaster NBC said last week that all advertising spots have sold out, with some ads costing US$7 million (Bt22.81 million) for 30 seconds, which is a new record.
NBC said all the advertisers will run their ads across NBC, Telemundo and streaming, including its streaming platform Peacock, for the first time. In past years, some ads had been sold to different platforms separately.
The company added that 40 per cent of the advertisers – 30 companies – in the game are new.
The Super Bowl is watched by around 100 million viewers even though ratings for some other sporting events are dropping.
The NFL has been the most popular TV programme for a long time while the Super Bowl remains the most watched event in the US.
It has been a place for giant companies to introduce new wares or launch brand campaigns while new companies with big budgets could also introduce themselves.
“The fractionalisation of attention because of streaming and social media makes the Super Bowl more important than ever,” Patrick Crakes, a former Fox Sports executive turned media consultant, told CNN Business.
“If you’re in business with the NFL and you’re advertising during the Super Bowl, you’re a real player,” Crakes said.
“You’re likely looking at about 70 ads, so you’re getting pretty close to $500 million in ad revenue from the game for NBC,” Tim Calkins, a marketing professor at Northwestern University’s Kellogg School of Management, was quoted as saying by CNN Business.
“And that, by the way, is just during the game. That doesn’t count before the game, after the game and all of the other opportunities there are to run additional advertising.” Calkins added.
According to research firm Kantar, the Super Bowl in-game ad revenue was $434.5 million.
“$500 million is a lot of money for anyone, but in the world of media, Super Bowl spots are on a whole other level,” Calkins explained.
“That is why the NFL is such a valuable sports franchise, because there’s this ability to charge advertisers this much to be on these events,” Calkins said.
Chiruit Isarangkun Na Ayuthaya
Nannapas Ngamman, director of the DITP office in Xiamen, said the office is using CSR activities to promote Thai jasmine rice, which was once again named the best jasmine rice in the world last year.
SootinClaimon.Com 