The Stock Exchange of Thailand (SET) Index closed at 1,595.12 on Thursday, up 7.91 points or 0.50 per cent. Total transactions amounted to Bt76 billion with an index high of 1,600.60 and a low of 1,590.33.
In the morning session, Krungsri Securities predicted that the SET would move between 1,580 and 1,600 points amid positive news of a $2-trillion US stimulus plan.
Factors causing the index to fluctuate included the falling oil price and a rise in the US 10-year Treasury bond yield, Krungsri Securities said.
The 10 stocks with the highest trade value today were DELTA, KBANK, EA, PTT, BBL, AEONTS, OR, GPSC, CPALL and IVL.
Other Asian indices were on the rise:
Japan’s Nikkei Index closed at 29,388.87, up 210.07 points or 0.72 per cent.
China’s Shang Hai SE Composite Index closed at 3,466.33, up 24.42 points or 0.71 per cent, while Shenzhen SE Component Index closed at 13,979.69, up 201.02 points or 1.46 per cent.
Hong Kong’s Hang Seng Index closed at 28,938.74, up 560.39 points or 1.97 per cent.
South Korea’s KOSPI closed at 3,087.40, up 25.98 points or 0.85 per cent.
Taiwan’s TAIEX Index closed at 16,571.28, up 140.15 points or 0.85 per cent.
By Syndication Washington Post, Bloomberg · Claire Ballentine, Vildana Hajric
Technology shares led U.S. stocks higher, regaining favor on the last day of a quarter where they trailed the rest of the major market sectors, with President Joe Biden set to unveil his next stimulus plan.
Apple Inc., Microsoft Corp. and Tesla Inc. pushed the tech-heavy Nasdaq 100 up 1.5%, while the Dow Jones Industrial finished lower with investors favoring growth over value shares again. The benchmark S&P 500 set an intraday high, retreating from a record closing level in the last moments of trading. Oil fell after an OPEC+ panel meeting ended without an oil policy recommendation. The dollar weakened, but still posted its best quarter in a year. The Bloomberg Commodity Index and developing-nation currencies climbed.
“The message is pretty clear that he intends to go big,” said Shawn Snyder, head of investment strategy at Citi Personal Wealth Management. “It’s really really huge fiscal tail winds.”
Data for March showed U.S. private employers added the most jobs in six months, adding to evidence that the vaccine drive and business reopenings are encouraging hiring.
Investors, rattled this week by the meltdown at Bill Hwang’s Archegos Capital Management, are turning their attention to growth and inflation as volatility spurred by the forced sales subsides. While Europe’s struggle with inoculations and the resurgence of the coronavirus have tempered growth expectations, the U.S. vaccine rollout is surpassing targets.
“We continue to be in this rotational kind of market and in particular some of what had been — to use a supermarket term — the hot pockets of speculative excess,” said Liz Ann Sonders, chief investment strategist at Charles Schwab. “But it obviously has not taken the market down with it more broadly, nor did the spectacle of Archegos do that either, so there’s clearly still resilience in the market.”
The fallout from the Archegos liquidation continued to play out. Discovery Inc.’s Class B shares surged as much as 115% before paring some gains and triggering several volatility halts. The gain far outpaced the advance in Class A shares, which trade with significantly more daily volume.
Ten-year Treasury yields rose for the fourth time in five days, trading near a 14-month high. Gold steadied after a two-day slump. West Texas Intermediate crude slipped after a gathering among producers ended without any recommendations on output, according to delegates.
These are some of the main moves in financial markets:
Stocks
The S&P 500 Index increased 0.4% to 3,972.90 as of 4:06 p.m. EDT.
The Dow Jones industrial average decreased 0.3% to 32,981.55.
The Nasdaq Composite Index gained 1.5% to 13,246.87, the highest in more than a week on the largest climb in almost three weeks.
The Nasdaq 100 Index gained 1.5% to 13,091.44, the highest in almost two weeks.
The Stoxx Europe 600 Index fell 0.2% to 429.60, the largest fall in more than a week.
Currencies
The Bloomberg Dollar Spot Index decreased 0.2% to 1,152.21.
The euro rose 0.1% to $1.1726.
The British pound increased 0.3% to $1.3782.
The Japanese yen depreciated 0.3% to 110.74 per dollar, hitting the weakest in about a year with its sixth straight decline.
Bonds
The yield on two-year Treasurys gained one basis point to 0.16%, the highest in three weeks on the biggest rise in more than a week.
The yield on 10-year Treasurys gained three basis points to 1.74%, the highest in about 14 months.
The yield on 30-year Treasurys jumped four basis points to 2.41%.
Britain’s 10-year yield increased two basis points to 0.845%, the highest in more than a week.
Germany’s 10-year yield fell one basis point to -0.29%.
Commodities
West Texas Intermediate crude decreased 2% to $59.36 a barrel.
Gold strengthened 1.3% to $1,707.49 an ounce, the biggest increase in three weeks.
The Stock Exchange of Thailand (SET) Index closed at 1,587.21 on Wednesday, down 2.32 points or 0.15 per cent. Total transactions amounted to Bt72 billion with an index high of 1,593.93 and a low of 1,585.58.
In the morning session, Krungsri Securities forecast the day’s index would fluctuate between 1,580 and 1,600 points despite hopes from a US infrastructure plan worth a massive $3 trillion (Bt93.6 trillion).
“The index would be under pressure due to the falling oil price and uncertainty over a rising US bond yield,” said the Krungsri Securities analyst.
The 10 stocks with the highest trade value today were PTT, EA, STGT, OSP, CPALL, OR, KBANK, RS, GPSC and CBG.
Other Asian indices were on the fall:
Japan’s Nikkei Index closed at 29,178.80, down 253.90 points or 0.86 per cent.
China’s Shang Hai SE Composite Index closed at 3,441.91, down 14.76 points or 0.43 per cent, while Shenzhen SE Component Index closed at 13,778.67, down 109.77 points or 0.79 per cent.
Hong Kong’s Hang Seng Index closed at 28,378.35, down 199.15 points or 0.70 per cent.
South Korea’s KOSPI closed at 3,061.42, down 8.58 points or 0.28 per cent.
Taiwan’s TAIEX Index closed at 16,431.13, down 123.77 points or 0.75 per cent.
The price of small and medium stocks on Tuesday skyrocketed because large stocks are offering limited room for expansion, experts said.
On Tuesday, the price of Better World Green (BWG) shares rose by 19.44 per cent to Bt0.86 per share, followed by Italian-Thai Development (ITD) by 14.19 per cent to Bt1.77, Thai Film Industries by 13.79 per cent to Bt0.33, and Nawarat Patanakarn (NWR) by 12.16 per cent to Bt0.83.
Chanchai Pantathanakit, investment strategy manager at Asia Plus Securities, said large stocks offer limited upside room due to foreign investors and local institutions’ net buys and sales in the latter part of March.
He said small and medium shares rose thanks to retail investors, judging from the fact that the number of stock-trading accounts had increased to 274,000 in February compared to 62,200 last year.
“Since the beginning of 2021, the Market for Alternative Investment has generated returns of up to 36.3 per cent, followed by 27.7 per cent in the sSET Index, 9.6 per cent in the SET, 8.3 per cent in SET100 and 6.7 per cent in SET50,” he said.
The investment strategist advised investors to speculate on stocks whose performance is likely to grow, such as SPVI at a fair value of Bt6.92 per share and Infraset (INSET) at Bt4.66 per share.
Meanwhile, Yuanta Securities (Thailand) strategist Natapon Khamthakrue advised investors to speculate on stocks with strong first-quarter performance that have gained from the government’s stimulus measures, such as Arrow Syndicate (ARROW), TAC Consumer (TACC), Business Alignment (BIZ), Moong Pattana International (MOONG), AMA Marine (AMA), Techno Medical (TM), ND Rubber (NDR), Sea Oil (SEAOIL) and Intermedical Care and Lab Hospital (IMH).
Despite the massive Ever Given ship being freed from choking the Suez Canal and the smooth flow now of cargo vessels through the vital waterway, the private sector believes the overall problem is not over yet and it won’t be all smooth sailing for exports.
The 400-metre-long Ever Given, one of the five largest cargo ships in the world, had paralysed transport since March 23 by blocking the Suez Canal, a major artery of Asia-Europe freight transport, leaving more than 450 cargo ships stranded at either end of the canal. Experts estimate the blockage caused damage worth around $9.6 billion (over Bt300 billion) per day until March 29, when tug boats with the help of land-based digging machines and a high tide got the huge ship moving again. Transportation experts expect the situation to return to normal and all stranded ships to pass through the waterway in four days.
However, international trade, tax and logistics specialist and chairman of Excellent Business Corporation International Sayan Chanvipaswongse said that although the blockage problem has been resolved, there are still many issues that will follow. Containers that the world is already short on will become more scarce because of the container volume on the now-freed Ever Given, which is more than 18,300, combined with the volume of containers on ships presently waiting to enter and exit the Suez Canal. Hence, delays in container deliveries will only exacerbate the already tight container circulation problem in the system, he explained.
The other problem is the delay in goods deliveries for customers in Europe. If trade partners lose sales opportunities, it might affect production plants in a chain. So if Thai exporters receive money under L/C, they may end up with nothing in hand, he said.
However, if it is a money transfer, there may be discussions with the buyer, in which case the Thai exporter could compensate for the delay in delivery as well as request to pay import tax in the event that the product still has to be delivered.
“Business partners have the right to not accept goods after the scheduled time and leave it to the exporter to pay the freight charge itself, this will be a burden on the exporter,” Sayan said.
Lessons must be learned from this incident, he added. Exporters must be aware of marine cargo insurance, including also having to find additional suppliers in case goods or raw materials need to be imported from Europe to produce products and in turn export these. They may need to find additional suppliers in other parts of the world, such as in the US, China, Japan, South Korea or Asean to mitigate the risk.
Thai National Shippers Council (TNSC) vice president Visit Limlurcha said the Suez Canal incident in the past week has delayed the export of Thai products to Europe.
In 2020, Thai-EU trade (including the UK) was worth more than Bt1.1 trillion, with the Suez Canal being the main passage of goods transport.
Among the top 10 products that Thailand exports to Europe are computer equipment and components, jewellery and accessories, rubber products, air conditioners and components, automobile equipment and components, motor vehicles and related parts, electric circuit boards, processed chicken, machinery and components, and clothing, he said.
“The impact is delayed delivery. Buyers have postponed new orders to wait and see how the situation turns out. From now on, containers will become more scarce. In respect to freight charges, the various fees have not yet been raised,” Visit said.
“However, the TNSC still expects Thai exports this year to expand by 4 per cent as predicted,” he added.
The Stock Exchange of Thailand (SET) Index rose by 1.87 points or 0.12 per cent to 1,591.40 in the morning session on Wednesday.
A Krungsri Securities analyst forecast the SET index would fluctuate between 1,580 and 1,600 points despite hopes over a US infrastructure plan worth a massive $3 trillion (Bt93.6 trillion).
“The index would be under pressure due to the falling oil price and uncertainty over a rising US bond yield,” he said.
He recommended investors buy:
▪︎ AOT, MINT, CENTEL, AAV, BA, CPN, CRC, Major, BDMS and BH, which benefit from positive news of Covid-19 vaccinations in Thailand.
▪︎ Hana, KCE, TU and CPF, which benefit from the weakening baht.
▪︎ CBG, Ichi, Sappe, RBF, DOD, IP, TACC, Gunkul and Kiss, which benefit from positive news on hemp production and its general use.
The SET Index closed at 1,590.97 on Tuesday, up 7.08 points or 0.45 per cent. Total transactions amounted to Bt97 billion with an index high of 1,593.52 points and a low of 1,585.06.
The price of gold dropped by Bt150 per baht weight in morning trade on Wednesday, the Gold Traders Association reported. The price has now dropped sharply for two consecutive days.
As of 9.22am, the buying price of a gold bar was Bt24,900 per baht weight and selling price Bt25,000 while gold ornaments cost Bt24,453.08 and Bt25,500, respectively.
At close on Tuesday, the buying price of a gold bar was Bt25,050 per baht weight and selling price Bt25,150 while gold ornaments cost Bt24,604.68 and Bt25,650, respectively.
The spot gold price dropped to US$1,682 (Bt52,784) per ounce on Wednesday after falling by $28.60 to $1,686 on Tuesday due to a rising US bond yield and strengthening dollar.
The Hong Kong gold price dropped by HK$130 to $15,630 (Bt63,085) per tael, the Chinese Gold and Silver Exchange Society reported.
By Syndication Washington Post, Bloomberg · Vildana Hajric
Stocks fell for a second day and Treasury yields touched a 14-month high as traders weighed the consequences of more stimulus from the Biden administration.
The utilities, information technology and consumer staples sectors pushed the benchmark S&P 500 lower, though financial shares recovered from Monday’s slide in the wake of the implosion of Archegos Capital Management. Apple Inc. led the Nasdaq Composite into negative territory. The dollar strengthened for a second day and gold slipped below $1,700 per troy ounce. Oil halted a two-day rally before the April 1 meeting of OPEC and its allies.
“The market’s still trying to figure out what the trade is — by that I mean, the stay-at-home stocks were the trade for basically a year,” said JJ Kinahan, chief market strategist at TD Ameritrade. “Now, more people are getting vaccinated, but at the same time, you’re starting to see a rise in cases in many states. So just like that is messy, so is the market.”
President Joe Biden, in an address slated for Wednesday in Pittsburgh, will detail a mass expansion of government spending aimed at reducing inequality and strengthening infrastructure. A revamp of the tax code is also part of the plan and is already proving divisive among economists and lawmakers.
Ten-year Treasury yields increased to as high as 1.77%. The five-year rate rose as high as 0.95%, a 13-month high, followed by a block sale in the notes.
ViacomCBS and Discovery rose, while the American Depositary Receipts of Chinese companies linked to the Archegos block trades also posted gains.
Europe’s equity benchmark rose to its highest level in 13 months as the momentum swung in favor of cyclical stocks such as banks and automakers.
Meanwhile, the U.S. reached a record three-day stretch of 10 million shots over the weekend, according to the Bloomberg Vaccine Tracker, and plans to offer inoculations to 90% of adults.
Stocks
The S&P 500 Index dipped 0.3% to 3,958.86 as of 4:02 p.m. EDT.
The Dow Jones industrial average fell 0.3% to 33,070.94, the biggest fall in a week.
The Nasdaq Composite Index fell 0.1% to 13,045.40.
The Nasdaq 100 Index declined 0.5% to 12,896.54.
The Stoxx Europe 600 Index jumped 0.7% to 430.65, the highest in more than 13 months.
Currencies
The Bloomberg Dollar Spot Index rose 0.3% to 1,154.34, the highest in almost 20 weeks on the biggest advance in a week.
The euro dipped 0.4% to $1.172, the weakest in 21 weeks.
The British pound fell 0.3% to $1.3724.
The Japanese yen depreciated 0.5% to 110.34 per dollar, hitting the weakest in about a year with its fifth straight decline and the largest decrease in more than three weeks.
Bonds
The yield on two-year Treasurys rose less than one basis point to 0.14%.
The yield on 10-year Treasurys climbed less than one basis point to 1.71%, the highest in more than a week.
The yield on 30-year Treasurys fell three basis points to 2.37%, the biggest fall in a week.
Britain’s 10-year yield climbed four basis points to 0.824%, the highest in more than a week on the largest increase in more than a week.
Germany’s 10-year yield increased three basis points to -0.29%, the highest in more than a week.
Commodities
West Texas Intermediate crude decreased 1.9% to $60.38 a barrel.
Gold depreciated 1.7% to $1,682.95 an ounce, the weakest in more than 11 months on the biggest tumble in more than a month.
The Stock Exchange of Thailand (SET) Index closed at 1,590.97 on Tuesday, up 7.08 points or 0.45 per cent. Total transactions amounted to Bt97 billion with an index high of 1,593.52 and a low of 1,585.06.
In the morning session, a Krungsri Securities analyst expected the index to rise to between 1,590 and 1,600 during the day in line with the direction of US and Asian indices.
He said the index also gained positive sentiment from the rising oil price after Russia backed Opec+ on oil production levels through May this year.
However, a rising US bond yield and volatility due to a rollover in the Thailand Futures Exchange market would pressure the index, he said.
He advised investors to follow US President Joe Biden’s announcement of a $3-trillion infrastructure plan on Wednesday.
The 10 stocks with the highest trade value today were CPALL, COM7, OR, PTT, KTC, BANPU, DELTA, AOT, CBG and BBL.
Other Asian indices were on the rise:
Japan’s Nikkei Index closed at 29,432.70, up 48.18 points or 0.16 per cent.
China’s Shang Hai SE Composite Index closed at 3,456.68, up 21.38 points or 0.62 per cent, while Shenzhen SE Component Index closed at 13,888.44, up 117.18 points or 0.85 per cent.
Hong Kong’s Hang Seng Index closed at 28,577.50, up 239.20 points or 0.84 per cent.
South Korea’s KOSPI Index closed at 3,070.00, up 33.96 points or 1.12 per cent.
Taiwan’s TAIEX Index closed at 16,554.90, up 78.93 points or 0.48 per cent.
The value of average daily trading of derivative warrants has hit a new high this year at Bt9.9 billion, up 46 per cent from Bt6.8 billion last year, a KGI Securities (Thailand) expert said on Tuesday.
Janewit Chinkunkunniwat, managing director of KGI Securities’ Derivatives Business Division, said the trading value of derivative warrants from January 1 to March 26 was Bt576 billion thanks to the bounce in Thai stock market.
He said most investors had bought more call warrants rather than put warrants. The top five derivative warrants popular among investors are Krung Thai Card (KTC) with a trading value of Bt14 billion, followed by Global Power Synergy (GPSC) of Bt11.8 billion, Energy Absolute (EA) of Bt11.7 billion, Sri Trang Agro-Industry (STA) of Bt9.8 billion and Srisawad Corporation (SAWAD) of Bt8.9 billion.
“We expect the trading value of derivative warrants to rise further as it accounts for 10 per cent of the capital market,” he said.
KGI Securities has launched 260 derivative warrants in the first three months of this year, compared to 812 for the whole of last year.
“We expect to launch approximately 1,000 derivative warrants by the end of this year,” he added.
Atthanan Piyaseth, head of structured products at Bualuang Securities, expects investors to spend on derivative warrants related to the country reopening in the second quarter of this year.
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