The Department of Airports is launching measures to ease financial impacts on airlines following the latest Covid-19 outbreak, said acting director-general Apirat Chaiwongnoi.
The department will cut both landing and parking fees by 50 per cent for domestic and international flights. The measure will be effective for one month, from February 1-28.
It will also extend the cut in shop rental fees at its airports to March 31.
Apirat said the moves were in line with Transport Minister Saksayam Chidchob’s policy of seeking measures to help airlines combat financial fallout from the outbreak.
The Thai automotive industry is bracing for impact after the Philippines imposed temporary import duties on cars and pickup trucks to protect its own automotive sector.
Duties on imported passenger cars and pickup trucks worth US$1,500 and $2,300 per vehicle, respectively, have been imposed until August 8 this year, said Pisit Rangsaritwutikul, president of Thailand Automotive Institute.
The Philippines is Thailand’s third-largest export market for cars and second-largest for pickup trucks.
The private sector in the Philippines is worried the new duties will push up the price of vehicles, since its domestic auto industry is still unable to meet local demand.
Thai auto production soared in November last year to 172,455 vehicles, its first rise in 19 months as domestic and export markets recovered from the Covid-19 crisis. The first 11 months of 2020 saw almost 1.3 million vehicles produced in Thailand.
But the second wave of Covid-19 in Europe and Thailand, coupled with political uncertainty in the US, then sparked concern over domestic and export markets for Thai autos. However, signs of recovery in the Australian and Thai markets have spurred hopes that production of vehicles in Thailand this year will be close to the targeted 1.4 million.
The Stock Exchange of Thailand (SET) Index closed at 1,497.88 on Friday, down 15.63 points or 1.03 per cent. Total transactions amounted to Bt96.69 billion with an index high of 1,518.05 and a low of 1,494.45.
In the morning session, an analyst at Krungsri Securities expected the index to fall to between 1,500 and 1,505 points despite the Bangkok Metropolitan Administration’s move to allow 13 types of business to reopen in Bangkok.
“The index will be under pressure due to a decline in foreign fund inflows and mass sell-offs of bank shares [KTB, SCB and BBL] after their fourth-quarter performance was worse than expected,” he said.
The 10 stocks with the highest trade value today were KBANK, BBL, PTT, STGT, SCB, KTC, CPN, TISCO, GPSC and SCC.
As of 4.30pm, the price of oil dropped by US$0.88 or 1.66 per cent to $52.25 per barrel, while gold dropped by $4.10 or 0.22 per cent to $1,861.80 per ounce.
Other Asian indices were mixed:
Japan’s Nikkei Index closed at 28,631.45, down 125.41 points or 0.44 per cent.
China’s Shang Hai SE Composite Index closed at 3,606.75, down 14.51 points or 0.40 per cent, while Shenzhen SE Component Index closed at 15,628.73, up 108.13 points or 0.70 per cent.
Hong Kong’s Hang Seng Index closed at 29,447.85, down 479.91 points or 1.60 per cent.
South Korea’s KOSPI Index closed at 3,140.63, down 20.21 points or 0.64 per cent.
Taiwan’s TAIEX Index closed at 16,019.03, down 134.74 points or 0.83 per cent.
Prime Minister Prayut Chan-o-cha held a meeting with the government’s economic team on Friday to discuss plans to ease tax burdens on different groups of Thais.
The agenda included discussions on land and construction tax as well as the possible extension of the deadline for filing personal income tax.
Prayut said he will table the plan at the next Cabinet meeting on Tuesday.
He also insisted that the government is not ignoring people’s problems, but is looking for ways to boost their income and ease their burden.
The economic team comprises Deputy PM, Supattanapong Punmeechaow, Finance Minister Arkhom Termpittayapaisith, National Economic and Social Development Council’s secretary-general Danucha Pichayanan and Finance Ministry’s permanent secretary Krisda Chinavicharana.
Thai export contracted 6.01 per cent to US$231.468 billion last year, better than the previously forecast decline of 7 per cent, the Commerce Ministry said on Friday.
Imports last year dropped 12.39 per cent to $206.991 billion.
Exports in December alone last year surged 4.71 per cent to $20.082 billion, the first rise in eight months and the highest growth in 22 months, due to recovery in demand for industrial products.
Imports in December expanded 3.62 per cent to $19.119 billion.
Despite fresh waves of Covid-19 in many Thai export markets, goods transport had not been badly disrupted since countries had imposed zoned restrictions rather than national lockdowns, said Pimchanok Vonkorpon, director-general of the ministry’s Trade Policy and Strategy Office.
The ministry forecasts exports will grow 4 per cent this year to $240.727 billion, with a chance of 5-per-cent expansion to US$243.042 billion, thanks to the global economic recovery.
Positive factors include limited lockdown restrictions and the availability of Covid-19 vaccines.
Among negative factors for Thai exports is the strengthening baht and shortage of goods containers.
The Stock Exchange of Thailand (SET) Index dropped by 1.16 points, or 0.08 per cent, to 1,512.35 in the morning session on Friday.
An analyst at Krungsri Securities expected the index to fall to between 1,500 and 1,505 points despite the Bangkok Metropolitan Administration’s move to allow 13 types of business to reopen in Bangkok.
“The index will be under pressure due to a decline in foreign fund inflow and mass sell-offs of bank shares [KTB, SCB and BBL] after their fourth-quarter performance was worse than expected,” he said.
He recommended investors to buy:
• PTTGC, TOP, IVL, EPG, VNT, SCGP, CBG, ROJNA, TVO, STGT, CPF, RCL, PSL, SYNEX, COM7, XO, WICE, JMT, MTC, SAWAD and KCE, as their fourth-quarter turnover is expected to improve.
• ADVANC, INTUCH, AP, SIRI and WHAUP, as they pay high dividends.
The SET Index closed at 1,513.98 on Thursday, down 1.74 points or 0.11 per cent. Total transactions amounted to Bt91.98 billion with an index high of 1,529.27 and a low of 1,510.80 due to mass sell-offs of low free-float stocks (DELTA and KTC) and uncertainty over the decline in fund inflow.
Seven low free-float stocks are at risk of being delisted from the SET50 and SET100 indices after the Stock Exchange of Thailand (SET) implemented free float adjusted market capitalisation regulations.
An analyst at Asia Plus Securities said DELTA, GPSC, AWC, VGI, BPP, CKP and ACE would be delisted from SET50 and SET100 indices due to SET’s new regulations.
He added that passive funds would reduce investment in MAKRO by 84 per cent, DELTA by 49 per cent, SCC by 31 per cent, GULF by 39 per cent, BAY by 47 per cent and GPSC and AWC by 43 per cent.
Somchai Amornthum, executive vice president at Krung Thai Asset Management, said SET’s free float adjusted market capitalisation regulations would help investors to manage investments in line with real market conditions.
“However, we advise investors to monitor how many low free float stocks will have reduced investment and be delisted from SET50 and SET100 indices before adjusting investment portfolio because domestic funds would not have many low free-float shares,” he said.
Thidasiri Srisamith, executive vice president at Kasikorn Asset Management, said apart from passive funds’ move to reduce investment in low free-float stocks, investors should monitor other factors, such as listed companies’ liquidity and growth potential, stocks’ fair price and funds’ overview.
The price of gold dropped by Bt50 per baht weight in morning trade on Friday, the Gold Traders Association reported.
As of 9.24am, the buying price of a gold bar was Bt26,350 per baht weight and selling price Bt26,450, while gold ornaments were priced at Bt25,878.12 and Bt26,950, respectively.
At close on Thursday, the buying price of a gold bar was Bt26,400 per baht weight and selling price Bt26,500, while gold ornaments were Bt25,923.60 and Bt27,000, respectively.
Spot gold price moved to US$1,864 (Bt55,835) per ounce in the morning, while Comex (Commodity Exchange) gold to be delivered in February dropped by 60 cents to $1,865.9 per ounce on Thursday due to mass sell-offs of the precious metal after its price had hit the highest level in two weeks.
Hong Kong gold price dropped by HK$30 to $17,260 (Bt66,694) per tael, the Chinese Gold and Silver Exchange Society reported.
By Syndication Washington Post, Bloomberg · Elizabeth Low, Alex Longley
Oil dipped below $53 a barrel in New York as the demand outlook in some of the world’s largest economies remained fragile.
Futures slipped 0.6% after JPMorgan Chase & Co. cut demand estimates for China as lockdowns spread ahead of the Lunar New Year travel rush. Meanwhile the U.K. suffered its worst day of the pandemic on Wednesday, with more than 1,800 deaths recorded in 24 hours.
On the supply side, the American Petroleum Institute said U.S. crude inventories swelled by 2.56 million barrels last week and gasoline and distillates stockpiles also increased, according to people familiar with the data.
Despite a more uncertain short-term consumption outlook, crude is still trading near the highest level in almost a year. There’s been a boost to energy use from cold weather, while Saudi Arabia’s unilateral output cuts and a weak dollar have also buoyed the market. There are hopes that the new Biden presidency will add fresh stimulus measures to boost demand.
“The recent price support is based on economic support packages,” said Hans Van Cleef, senior energy economist at ABN Amro Bank. Nonetheless, “the British variant of the virus spreading fast is keeping a lid on the upside potential.”
Though the API data largely pointed to stockpile increases, there was a big draw at the storage hub of Cushing, Oklahoma, which is the main pricing point for U.S. crude futures.
Declines there have helped to boost WTI’s nearest timespread to its strongest level since May — an indication of market tightness. The move was also aided by the expiry of the February contract this week, which had been in a bearish contango structure.
By Syndication Washington Post, Bloomberg · Cecile Gutscher
The advance in U.S. stocks stalled with major indexes at or near records, though tech shares continued to march higher on anticipation that more fiscal spending will revive economic growth and bolster corporate earnings. The dollar weakened.
The S&P 500 Index was little changed at noon in New York, after closing at an all-time high. Risk appetite has gotten a boost from President Joe Biden’s push for nearly $2 trillion in additional spending and plans to jump-start a federal response to the pandemic. Benchmark Treasury yields remained higher after initial jobless claims posted a small decline.
In Europe, tech firms led gains, with the Stoxx 600 Index touching its highest level in 11 months. The euro held an advance after the European Central Bank left rates unchanged and affirmed the size of its pandemic purchase program at $1.2 trillion (1.85 trillion euros).
The MSCI World Index reached an intraday record on Thursday as investors look forward to increased economic support to battle the pandemic. ECB President Christine Lagarde warned the virus continues to pose a serious risk after policymakers voted to keep pumping unprecedented amounts of stimulus into the economy. In the U.S., Biden is seeking a $1.9 trillion fiscal package that’s already drawn criticism from several Republican senators.
“High valuations could find justification in the strong recovery that we expect, while inflation assets remain in the affordable zone,” according to Florian Ielpo, head of macroeconomic research and multi-asset portfolio manager at Unigestion SA. “We therefore see 2021 as a land of investment opportunities.”
Meanwhile, fresh tensions surfaced between U.S. companies and Beijing. China’s three biggest telecommunications firms said they requested a review of the New York Stock Exchange’s decision to delist their shares. Separately, Twitter Inc. locked the official account of the Chinese embassy to the U.S., citing a violation of its “dehumanization” policy.
On the virus front, global fatalities hit a daily record, with a U.K. official comparing some hospitals there to a “war zone.”
These are the main moves in markets:
Stocks
The S&P 500 rose less than 0.1% as of 4 p.m. EST.
The Nasdaq 100 Index added 0.8%.
The Stoxx Europe 600 Index ended flat.
The MSCI Asia Pacific Index rose 0.7%.
The MSCI Emerging Market Index gained 0.6%.
Currencies
The Bloomberg Dollar Spot Index declined 0.2%.
The euro jumped 0.4% to $1.2158.
The British pound gained 0.5% to $1.372.
The onshore yuan was little changed at 6.461 per dollar.
The Japanese yen was little changed at 103.54 per dollar.
Bonds
The yield on 10-year Treasurys gained three basis points to 1.11%.
The yield on two-year Treasurys fell one basis point to 0.12%.
Germany’s 10-year yield climbed three basis points to -0.496%.
Japan’s 10-year yield dipped one basis point to 0.043%.
Commodities
West Texas Intermediate crude declined 0.3% to $53.13 a barrel.
Brent crude was little changed at $56.11 a barrel.
Prime Minister Prayut Chan-o-cha
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