The Stock Exchange of Thailand (SET) Index fell by 5.08 points or 0.32 per cent to 1,563.13 in the morning session on Friday. The volume of total transactions was THB11.30 billion with an index high of 1,564.44 and a low of 1,558.34.
The 10 stocks with the highest trade value were KBANK, STGT, STA, CPF, BBL, SAWAD, AOT, ADVANC, SCB and BANPU.
The SET Index closed at 1,568.21 on Thursday, down 11.80 points or 0.75 per cent. The volume of total transactions was THB93.33 billion with an index high of 1,587.95 and a low of 1,564.83.
Gold opens stronger in Thailand despite strong US data prompting sell-offs
The price of gold in Thailand rose by THB100 per baht weight in morning trade on Friday amid mass sell-offs of the precious metal after the US revealed strong economic data. The rise in price was comparable to the opening trade on Thursday.
According to the Gold Traders Association report at 9.26am, the buying price of a gold bar was THB26,500 per baht weight and selling price THB26,600, while gold ornaments were priced at THB26,029.72 and THB27,100, respectively.
At close on Thursday, the buying price of a gold bar was THB26,400 per baht weight and selling price THB26,500, while gold ornaments were THB25,923.60 and THB27,000, respectively.
Spot gold price on Friday was US$1,788 (THB56,215) per ounce compared to Thursday when it fell by $11.1 to $1,782 per ounce.
Hong Kong gold price on Friday fell by HK$70 to $16,510 (THB66,886) per tael, the Chinese Gold and Silver Exchange Society reported.
Stocks drop on Biden plan to lift capital-gain tax
U.S. stocks had their biggest slide in five weeks after President Joe Biden was said to propose almost doubling the capital-gains tax for the wealthy. The dollar rose.
The S&P 500 turned lower after Bloomberg News reported that for those earning $1 million or more, the new top rate, coupled with an existing surtax on investment income, means that federal tax rates for rich investors could be as high as 43.4%. Speculation arose that some traders could sell shares before any change was made to capture the lower rate. Equities whipsawed throughout the session amid mixed economic data and renewed concern the pandemic was worsening.
All major groups in the S&P 500 fell, led by material, energy and tech shares. AT&T Inc. rallied after beating profit estimates. Data showed sales of previously owned U.S. homes slid in March to a seven-month low, while jobless claims posted an unexpected decline last week.
“Sticker shock over some of these tax figures will be hard to shake off for some investors,” Edward Moya, senior market analyst at Oanda, wrote in a note. “Some traders are looking for an excuse to lock in profits and they might choose to use this tax story as their catalyst.”
A gauge of market breadth suggests investor concerns remain. The percentage of Russell 2000 members trading above their 50-day moving average fell below 40%, compared to about 80% for the large-cap S&P 500, a smidgen off a record gap, according to data compiled by Bloomberg going back to 1995. It’s too early to tell whether this can morph into something larger, but previous instances have led to subsequent pressure on U.S. stocks, wrote Sundial Capital Research founder Jason Goepfert in a note to clients.
Elsewhere, Bitcoin declined for the sixth time in seven days, extending losses after the higher capital gains proposal was revealed. Investors already face a capital-gains tax if they hold the cryptocurrency for more than a year.
Here are some key events to watch this week:
– U.S. releases new home sales data Friday.
These are some of the main moves in markets:
Stocks
– The S&P 500 fell 0.9% at 4 p.m. EDT.
– The Stoxx Europe 600 Index advanced 0.7%.
– The MSCI All-Country World Index declined 0.2%.
Currencies
– The Bloomberg Dollar Spot Index gained 0.2%.
– The euro fell 0.2% to $1.2012.
– The Japanese yen was little changed at 108.03 per dollar.
Bonds
– The yield on 10-year Treasurys fell one basis point to 1.55%.
– Germany’s 10-year yield climbed one basis point to -0.25%.
– Britain’s 10-year yield was unchanged at 0.74%.
Commodities
– West Texas Intermediate crude advanced 0.5% to $61.65 a barrel.
– Gold fell 0.5% to $1,783.60 an ounce.
Published : April 23, 2021
By : Syndication Washington Post, Bloomberg · Kamaron Leach, Vildana Hajric
Asia Plus bullish on Thai stock market after strong 1st quarter
Asia Plus Securities (ASP) expects to raise its current forecast for companies listed on the Stock Exchange of Thailand (SET) following commercial banks strong first-quarter performance.
ASP’s current 2021 forecast has SET-listed companies’ profits growing 32 per cent from last year to THB796 billion, or THB70.20 per share.
Executive vice president Therdsak Thaveeteeratham said on Thursday that the securities company’s research department believed listed companies’ first-quarter profits would be higher than expected after commercial banks, which account for 20 per cent of the Thai stock market, showed strong first-quarter profits.
He also expected community trading firms, a core structure of the Thai stock market, to show strong profits in line with the rising oil price.
“Siam Cement [SCC]’s first-quarter profit is expected to be around THB10 billion and then increase to THB36 billion this year,” he said.
“Also, profits of steel producers are likely to increase due to the rising steel price.”
He said the new wave of Covid-19 and delayed vaccine distribution would pressure the SET in the short term but cause limited impact on SET-listed companies since Thailand’s liquidity is still high – reflected in a record THB15.72 trillion of deposits in the system as of January.”However, in the worst-case scenario, Thailand’s gross domestic product this year will grow only 2 per cent, compared to the research department’s forecast of 2.6 per cent.”
He said more funds were flowing into risky assets. Also, 270,000 stock trading accounts were opened in February, eight times higher than in the past.
“Meanwhile, 10 per cent of investment funds flowed into Thai equity funds in the first two months. These positive sentiments will help the SET to overcome the Covid-19 crisis,” he said.
He expected SET to rise 3.1 per cent in the remainder of April as investors speculate for profits before dividend payments are made.
“We advise purchasing value stocks whose price is cheap and that stand to gain from positive sentiment,” he said, predicting the SET Index could hit 1,670 points at the end of this year.
SET loses 0.75% amid worries over Covid-19, foreign fund flows
The Stock Exchange of Thailand (SET) Index closed at 1,568.21 on Thursday, down 11.80 points or 0.75 per cent. The volume of total transactions was THB93.33 billion with an index high of 1,587.95 and a low of 1,564.83.
In the morning session, Krungsri Securities expected the day’s index to rise to a resistance level between 1,585 and 1,590 points in line with regional indices.
However, uncertainty over the surge of Covid-19 cases in Thailand, the falling oil price and possible outflow of foreign funds would pressure the index, it added.
The 10 stocks with the highest trade value today were SAWAD, KBANK, STA, SCC, SCB, STGT, ADVANC, BBL, PSL and AOT.
Other Asian indices were mixed:
Japan’s Nikkei Index closed at 29,188.17, up 679.62 points or 2.38 per cent.
China’s Shang Hai SE Composite Index closed at 3,465.11, down 7.82 points or 0.23 per cent, while Shenzhen SE Component Index closed at 14,209.44, up 58.30 points or 0.41 per cent.
Hong Kong’s Hang Seng Index closed at 28,755.34, up 133.42 points or 0.47 per cent.
South Korea’s KOSPI closed at 3,177.52, up 5.86 points or 0.18 per cent.
Taiwan’s TAIEX Index closed at 17,096.97, down 105.14 points or 0.61 per cent.
SET perks up a little, but Covid-19 worries, foreign fund flows cast shadow
The Stock Exchange of Thailand (SET) Index rose by 5.34 points or 0.34 per cent to 1,585.35 in the morning session on Thursday. The volume of total transactions was THB7.37 billion, with an index high of 1,587.95 and a low of 1,584.08.
AKrungsri Securities analyst expected the day’s index to rise to the resistance level between 1,585 and 1,590 points in line with the increase in regional indices.
However, he said uncertainty over the rising number of Covid-19 cases in Thailand, the falling oil price and the direction of foreign funds, which are likely to flow out, would pressure the index.
He recommended investors buy:
▪︎ PSL, TTA and RCL, which would benefit from a rise in the freight rate.
▪︎ TQM, STGT, Com7, Synex, BDMS, BCH and CHG, which benefit amid the spread of Covid-19.
▪︎ Hana, KCE, TU, and CPF, which benefit from the weakening baht.
The SET Index closed at 1,580.01 on Wednesday, down 0.03 points. The volume of total transactions was THB80.53 billion, with an index high of 1,584.57 points and a low of 1,575.56.
The baht opened at 31.28 to the US dollar on Thursday, strengthening from its close of 31.33 on Wednesday. The Thai currency is likely to move between 31.20 and 31.35 during the day, Krungthai Bank market strategist Poon Panichpibool said.
He said the baht was facing several negative factors, such as the Covid-19 crisis in Thailand and in other countries.
Poon predicted that the baht would move in a wide range after importers bought the US currency as the baht strengthened to 31.15 per dollar.
He expected exporters to sell the baht when it weakens to 31.50 per dollar.
Concern over rising Covid-19 infections pushes gold for second successive day
The price of gold rose by THB200 per baht weight during morning trade on Thursday thanks to mass buy-ups of the precious metal as the number of Covid-19 cases are rising exponentially in many countries, especially India.
According to the Gold Traders Association, as of 9.25am, the buying price of a gold bar was THB26,500 per baht weight and selling price THB26,600, while that of gold ornaments was THB26,029.72 and THB27,100, respectively.
On Wednesday’s close, the buying price of a gold bar was THB26,300 per baht weight and selling price THB26,400, while gold ornaments cost THB25,832.64 and THB26,900, respectively.
Spot gold price on Thursday stood at US$1,795 (THB56,240) per ounce after it rose $14.7 to $1,793.1 per ounce on Wednesday.
The Hong Kong gold price on Thursday rose by HK$100 to HK$16,610 (THB67,054) per tael, the Chinese Gold and Silver Exchange Society reported.
Laem Chabang project set to sail ahead after Cabinet agrees to lower returns
The Laem Chabang Port development project is expected to cast off after the Cabinet agreed to adjust down the project’s estimated returns to the state to Bt29.05 billion, which is the value agreed to by both bid winner GPC Consortium and the Port Authority of Thailand (PAT), PAT director-general Lt-Junior Grade Kamolsak Promprayoon said on Wednesday.
The project includes the development of the third phase of Laem Chabang Port, also known as Port F.
GPC Consortium, which includes PTT Tank Terminal, a subsidiary of PTT; Gulf Energy Development, and China Harbour Engineering, had previously proposed a net present value (NPV) of returns to the state of Bt12.05 billion, lower than the default amount of Bt32.2 billion the state had expected from the project. This led the Eastern Economic Corridor Office to propose to the Cabinet that it adjust the estimated returns down to Bt29.05 billion.
GPC will now present recommendations on increasing the efficiency of Port F to the Eastern Economic Corridor Office committee for its approval.
Kamolsak added that PAT has agreed to the lower returns to the state as it estimated that restarting the bidding process could delay Port F’s opening by up to two years.
SET Index stays level on bad day for other Asian stocks indices
The Stock Exchange of Thailand (SET) Index closed at 1,580.01 on Wednesday, down 0.03 points or 0.00 per cent. The volume of total transactions was THB80.53 billion with an index high of 1,584.57 and a low of 1,575.56.
In the morning session, Krungsri Securities said the index on Wednesday would fall to between 1,565 and 1,570 points, in line with the drop in regional indices due to uncertainty over rising Covid-19 cases worldwide, especially in India and South Africa.
It said negative sentiment over the pandemic had caused the oil price to fall and would impact energy-related shares.
“The index would also be under pressure from volatility in foreign fund flows,” Krungsri Securities said.
The 10 stocks with the highest trade value today were ADVANC, KBANK, INTUCH, DELTA, SCC, GULF, BBL, SAWAD, PTT and COM7.
Other Asian indices were down with one exception:
Japan’s Nikkei Index closed at 28,508.55, down 591.83 points or 2.03 per cent.
China’s Shang Hai SE Composite Index closed at 3,472.93, down 0.013 points or 0.00037 per cent, while the Shenzhen SE Component Index closed at 14,151.15, up 49.24 points or 0.35 per cent.
Hong Kong’s Hang Seng Index closed at 28,621.92, down 513.81 points or 1.76 per cent.
South Korea’s KOSPI closed at 3,171.66, down 49.04 points or 1.52 per cent.
Taiwan’s TAIEX Index closed at 17,202.11, down 121.76 points or 0.70 per cent.
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