The Stock Exchange of Thailand (SET) Index rose by 6.24 points, or 0.39 per cent, to 1,590.13 in the morning session on Tuesday.
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 rising oil price as Russia supported Opec+ on maintaining oil production until May this year.
However, rising US bond yield and volatility due to a rollover in Thailand Futures Exchange market would pressure the index, he said.
He advised investors to follow US President Joe Biden’s US$3-trillion infrastructure plan.
He recommended that investors buy:
▪︎ AOT, MINT, CENTEL, AAV, BA, CPN, CRC and MAJOR, which benefit from positive news of Covid-19 vaccine 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.
▪︎ PTG, EA, GPSC and BBP, which benefit from news that Thailand will stop sales of conventional motor vehicles by 2035 and go in solely for electric vehicles.
The SET Index closed at 1,583.89 on Monday, up 9.03 points or 0.57 per cent. Total transactions amounted to Bt71 billion with an index high of 1,592.47 and a low of 1,580.90.
The price of gold dropped by Bt200 per baht weight in morning trade on Tuesday, the Thai Gold Traders Association reported.
As of 9.29am, the buying price of a gold bar was Bt25,200 per baht weight and selling price Bt25,300, while gold ornaments were priced at Bt24,741.12 and Bt25,800, respectively.
At close on Monday, the buying price of a gold bar was Bt25,400 per baht weight and selling price Bt25,500, while gold ornaments were Bt24,938.20 and Bt26,000, respectively.
Spot gold price dropped to US$1,710 (Bt53,383) per ounce on Tuesday after falling by $20.1 to $1,714.6 on Monday, the lowest in three weeks, due to strengthening dollar.
Meanwhile, the market is keeping an eye on US President Joe Biden’s announcement on the $3-trillion infrastructure plan on Wednesday.
Hong Kong gold price dropped by HK$120 to $15,880 (Bt63,779) per tael, the Chinese Gold and Silver Exchange Society reported.
By Syndication Washington Post, Bloomberg · Claire Ballentine, Olivia Raimonde
U.S. stocks dropped from record highs as investors weighed the potential fallout from forced block sales on the rest of Wall Street. Oil rose and Treasury yields climbed higher.
The financials sector weighed on the benchmark S&P 500 for much of the day following revelations that banks including Goldman Sachs Group Inc. and Morgan Stanley liquidated holdings in Bill Hwang’s family office Archegos Capital Management on Friday after he failed to meet margin calls. Boeing Co. lifted the Dow Jones industrial average to another all-time high after the aircraft maker announced a large order. The Nasdaq Composite finished in the red.
“Investors are whistling in the dark as they try to determine how wide the Archegos-related pain will spread,” said Adam Phillips, director of portfolio strategy at EP Wealth Advisors. “You’re seeing a tug-of-war play out between those who believe the situation is benign and those who worry about a systemic risk.”
Small ripples of the forced unwind were felt in credit markets. Nomura had to take the rare step of canceling a bond deal that had already priced after its loss warning. The investment grade credit default swaps index, a gauge of U.S. credit fear, was relatively calm, even though traders are demanding a higher cost to hedge against losses on the debt of banks that have been caught up in the Archegos situation, including Nomura and Credit Suisse.
A dollar gauge rose and 10-year U.S. Treasury yields pushed higher. The Stoxx 600 gauge extended its highest level in 13 months.
Investors have been focusing on the strength of the recovery, aided by vaccines, and inflation risks. Later this week, U.S. President Joe Biden plans to unveil a further stimulus program with a tilt toward infrastructure. U.S.-China ties are also in focus, after a report that Washington isn’t ready to lift tariffs on Chinese imports in the near future, but may be open to trade talks.
“Now, as we talk about additional stimulus — there will still be some of that — but you are going to have to start to balance it with the proposed tax increases,” said Jeff Mills, chief investment officer of Bryn Mawr Trust. “Because as we talk about more and more spending, it becomes very clear that taxes are going to increase, it’s just a matter of by how much.”
West Texas Intermediate crude swung between gains and losses before turning higher. Traders focused on the demand impact of renewed coronavirus lockdowns before the OPEC+ policy discussions on Thursday. Meanwhile, the Ever Given was freed to allow the reopening of the Suez Canal.
Elsewhere, Bitcoin headed for the biggest one-day gain in two weeks.
These are some of the main moves in financial markets:
Stocks
The S&P 500 Index declined 0.1% to 3,971.10 as of 4:05 p.m. EDT.
The Dow Jones industrial average increased 0.3% to 33,171.37, the highest on record.
The Nasdaq Composite Index sank 0.6% to 13,059.65.
The Nasdaq 100 Index fell 0.1% to 12,965.74.
The Stoxx Europe 600 Index climbed 0.2% to 427.61, the highest in about 13 months.
Currencies
The Bloomberg Dollar Spot Index increased 0.2% to 1,150.47.
The euro dipped 0.2% to $1.1765.
The British pound fell 0.2% to $1.3761.
The Japanese yen depreciated 0.1% to 109.80 per dollar, the weakest in a year.
Bonds
The yield on 10-year Treasurys increased three basis points to 1.71%, the highest in more than a week.
The yield on 30-year Treasurys advanced three basis points to 2.41%, the highest in more than a week.
Germany’s 10-year yield gained three basis points to -0.32%, the highest in a week.
Britain’s 10-year yield advanced three basis points to 0.788%, the highest in a week on the largest gain in more than a week.
Commodities
West Texas Intermediate crude gained 1% to $61.56 a barrel, the highest in more than a week.
Gold depreciated 1.2% to $1,711.50 an ounce, the weakest in three weeks on the largest drop in almost four weeks.
The Stock Exchange of Thailand (SET) Index closed at 1,583.89 on Monday, up 9.03 points or 0.57 per cent. Total transactions amounted to Bt71 billion with an index high of 1,592.47 and a low of 1,580.90.
In the morning session, Krungsri Securities expected the day’s index to rise to between 1,580 and 1,585 points in response to the rise in the US consumer confidence index.
He said the index would gain positive sentiment from mass buy-ups of shares as window dressing before the end of the first quarter this year.
“However, the index will be under pressure due to rising US bond yield and volatility in fund flows,” he said.
The 10 stocks with the highest trade value today were BANPU, CPALL, PTT, ACE, SCC, OR, BTS, AEONTS, VGI and PTTGC.
Other Asian indices were up with one exception:
Japan’s Nikkei Index closed at 29,384.52, up 207.82 points or 0.71 per cent.
China’s Shang Hai SE Composite Index closed at 3,435.30, up 16.97 points or 0.50 per cent, while Shenzhen SE Component Index closed at 13,771.26, up 1.58 points or 0.011 per cent.
Hong Kong’s Hang Seng Index closed at 28,338.30, up 1.87 points or 0.0066 per cent.
Taiwan’s TAIEX Index closed at 16,475.97, up 170.09 points or 1.04 per cent.
However, South Korea’s KOSPI closed at 3,036.04, down 4.97 points or 0.16 per cent.
To tackle the illegal use of digital assets, the Securities and Exchange Commission (SEC) is framing regulations to allow digital asset custodial wallet providers to seek a licence.
SEC secretary-general Ruenvadee Suwanmongkol said that if there were no change in regulations, the commission could request permission from the Finance Ministry to make an announcement as soon as possible.
She said the regulations would allow digital asset custodial wallet providers to take care of customers’ digital assets worth less than Bt15 million by themselves, but those who take care of customers’ digital assets worth more than Bt15 million must deposit such assets with digital asset custodians.
“Currently, digital asset custodial wallet providers who take care of customers’ digital assets worth more than Bt15 million are using digital asset custody services in foreign countries that were not under Thailand’s laws,” she said.
“Meanwhile, we found that digital assets can be used in illegal ways, such as for drugs and money laundering, as digital assets can conceal transaction information.”
She said a digital asset exchange had requested for real estate tokenisation with the SEC last week, adding that the commission will issue a licence to the company by the second quarter of this year.
“This move will help investors become familiar with new ways of investment,” she added.
Both domestic and overseas factors could influence the Stock Exchange of Thailand (SET) and the baht this week, Kasikornbank experts said on Sunday.
Kasikorn Securities said the SET Index’s support line is between 1,550 and 1,565 points, while its resistance line is between 1,585 and 1,600 points.
The securities company advised investors to follow the Covid-19 situation and vaccines, tensions between China and western countries, and Thailand’s political situation.
“US economic data that warrants close monitoring include manufacturing Purchasing Managers Index [PMI], non-farm payrolls, and jobless claims,” Kasikorn Securities said.
“Other important factors that warrant close monitoring include the euro-zone and Japan’s manufacturing PMI, plus Japan’s retail sales and industrial production.
The SET Index closed at 1,574.86 on Friday, up 0.70 per cent compared to the previous week. The average daily transaction was Bt84.75 billion, up 0.18 per cent compared to the previous week.
Meanwhile, Kasikornbank forecast the baht would move between 30.90 and 31.30 to the US dollar this week.
The bank advised investors to follow the Bank of Thailand’s financial and economic report for February, the Covid-19 situation and vaccines, and the direction of the US bond yield.
“US economic data that warrants close monitoring include non-farm payrolls, private employment, consumer confidence index, manufacturing PMI, home sales, and jobless claims,” Kasikornbank said.
“Other important factors that warrant close monitoring include China, euro-zone and Britain’s manufacturing and service PMI.”
The baht closed at 31.08 to the dollar on Friday, weakening from 30.85 in the previous week. The baht is at its weakest in four and a half months at Bt31.20 to the dollar this week.
The Stock Exchange of Thailand (SET) Index rose by 9.08 points, or 0.58 per cent, to 1,583.94 in the morning session on Monday.
A Krungsri Securities analyst expected the day’s index to rise to between 1,580 and 1,585 in response to the rise in the US consumer confidence index and oil price before falling.
He said the index would gain positive sentiment from mass buy-ups of shares as window dressing before the end of the first quarter this year.
“However, the index would be under pressure due to rising US bond yield and volatility in funds flow,” he said.
He recommended that investors buy:
▪︎ AOT, MINT, CENTEL, AAV, BA, CPN, CRC and MAJOR, which benefit from positive news of the Covid-19 vaccine 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.
▪︎ PTG, EA, GPSC and BBP, which benefit from news that Thailand will stop sales of conventional motor vehicles by 2035 and go in solely for electric vehicles.
The SET Index closed at 1,574.86 on Friday, up 3.82 points or 0.24 per cent. Total transactions amounted to Bt74 billion with an index high of 1,580.74 and a low of 1,566.89.
The price of gold was unchanged from Saturday’s close in morning trade on Monday, the Gold Traders Association reported.
As of 9.29am, the buying price of a gold bar was Bt25,450 per baht weight and selling price Bt25,550, while gold ornaments were priced at Bt24,998.84 and Bt26,050, respectively. The price had risen by Bt150 per baht weight last week.
Spot gold price dropped slightly to US$1,732 (Bt54,049) per ounce after rising by $7.2 to $1,732.3 on Friday, due to mass buy-ups of safe-haven assets amid uncertainty over the economic impact after European countries imposed lockdown measures to contain the spread of Covid-19.
Hong Kong gold price rose by HK$10 to $16,040 (Bt64,407) per tael, the Chinese Gold and Silver Exchange Society reported.
The Stock Exchange of Thailand (SET) Index closed at 1,574.86 on Friday, up 3.82 points or 0.24 per cent. Total transactions amounted to Bt74 billion with an index high of 1,580.74 and a low of 1,566.89.
In the morning session, Krungsri Securities expected the day’s index to fluctuate between 1,560 and 1,580 despite positive sentiment from US figures showing jobless claims had fallen to their lowest level during the Covid-19 pandemic.
Krungsri Securities said the falling oil price amid uncertainty over a new wave of Covid-19 in Europe and India, plus volatility in fund flows, would pressure the index.
The 10 stocks with the highest trade value today were ACE, OR, BANPU, AOT, HANA, STA, KTC, DELTA, ADVANC and TRUE.
Other Asian indices were on the rise:
Japan’s Nikkei Index closed at 29,176.70, up 446.82 points or 1.56 per cent.
China’s Shang Hai SE Composite Index closed at 3,418.33, up 54.74 points or 1.63 per cent, while Shenzhen SE Component Index closed at 13,769.68, up 348.52 points or 2.60 per cent.
Hong Kong’s Hang Seng Index closed at 28,336.43, up 436.82 points or 1.57 per cent.
South Korea’s KOSPI closed at 3,041.01, up 32.68 points or 1.09 per cent.
Taiwan’s TAIEX Index closed at 16,305.88, up 245.74 points or 1.53 per cent.
The Thai stock market has the highest fundraising value among Asean countries in the first quarter of this year, the Stock Exchange of Thailand (SET) said on Friday.
Dr Soraphol Tulayasathien, SET senior executive vice president and head of corporate strategy division, said Thailand’s fundraising as of February this year was Bt46.1 billion (US$1.48 billion), followed by Indonesia Bt5.96 billion ($192 million) and Malaysia Bt497 million ($16 million).
In the first quarter of this year, five companies launched initial public offerings (IPOs) with market capitalisation of Bt217.41 billion at IPO price.
Of those companies, PTT Oil and Retail Business (OR) and Rojukiss International (KISS) were listed on the SET, while Jakpaisan Estate (JAK), TQR and President Automobile Industries (PACO) were listed in the Market for Alternative Investment.
Manpong Senanarong, SET senior executive vice president and head of issuer and listing division, said up to 30 companies, property funds, real estate investment trusts and infrastructure funds are expected to be listed in the Thai stock market this year.
“Of these, 10 companies are ready to raise funds in the stock market, while eight companies are filing their documents with the Securities and Exchange Commission [SEC],” Manpong said.
Manpong expected Thai stock market capitalisation this year to be similar to the previous year of Bt555 billion.
Kongkiat Opaswongkarn, Asia Plus Group Holdings chief executive officer, said four companies with the securities company’s support — Asset Wise (ASW), Mena Transport (MENA), NSL Foods (NSL) and Proen Corp (PROEN) — had received approval from the SEC to launch their IPOs.
“Three of these companies are expected to launch their IPOs in the first half of this year, and one company in the second half,” Kongkiat said.
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