The price of gold rose by Bt100 per baht weight in the morning trade on Friday, the Gold Traders Association reported.
As of 9.27am, the buying price of a gold bar was Bt26,200 per baht weight and selling price Bt26,300 while gold ornaments cost Bt25,726.52 and Bt26,800, respectively.
On Thursday’s close, the buying price of a gold bar was Bt26,100 per baht weight and selling price Bt26,200 while gold ornaments cost Bt25,635.56 and Bt26,700, respectively.
Thailand urges talks on Dawei SEZ after construction setback
EconJan 15. 2021Deputy Prime Minister Supattanapong Punmeechaow
By The Nation
Thailand is keen to push forward development of Myanmar’s Dawei special economic zone (SEZ) and deep sea port, said deputy Prime Minister Supattanapong Punmeechaow on Thursday.
He was speaking in his capacity as chairman of the Myanmar-Thailand joint high-level committee for development of the Dawei SEZ and related projects.
The Dawei SEZ has been hit with repeated delays, and faced another setback last month when Myanmarcancelled contracts with the Italian-Thai Development Company and partners to develop its first phase.
Meanwhile, Thailand has invested in infrastructure to support the SEZ, including the soon-to-open Bang Yai-Kanchanaburi motorway to Myanmar’s border. The route will enable Thai trade to flow directly to the Indian Ocean without passing through the Malacca Strait.
Supattanapong added that the three parties involved in the Dawei project – Thailand, Myanmar and Japan – should hold more talks on crucial issues soon to push forward development.
The National Economic and Social Development Council is gathering information on the project to be presented to Supattanapong. It will also cooperate with the Foreign Ministry in deciding how Thailand should proceed on the project.
EconJan 15. 2021American flags outside the New York Stock Exchange in New York on Jan. 4, 2021. MUST CREDIT: Bloomberg photo by Michael Nagle.
By Syndication Washington Post, Bloomberg · Claire Ballentine, Vildana Hajric
U.S. stocks fell for the first time in three days and Treasury yields climbed amid expectations President-elect Joe Biden plans covid-19 relief of as much as $2 trillion.
After approaching all-time highs most of Thursday, the S&P 500 turned negative late in the trading session. Technology, communication services and consumer discretionary sectors were the biggest losers, while energy shares rose with oil. Biden last week put the “entire package” at “trillions of dollars,” and many Democrats believe it will be as much as $2 trillion. Biden is expected to announce his economic support plans later in the day. Federal Reserve Chairman Jerome Powell said policymakers won’t raise interest rates unless they see troubling signs of inflation.
“With stock markets close to record highs, some investors may be concerned about signs of over-exuberance in equities,” said Mark Haefele, chief investment officer at UBS Global Wealth Management. “But support from vaccine rollouts, continued low interest rates, and the likelihood of further fiscal stimulus should drive rapid economic and earnings growth in 2021, which should support further upside for equities.”
Investors betting on an economic recovery this year are tolerating stretched stock valuations, partly because they expect further U.S. fiscal spending and better control of the pandemic with vaccines. With Biden due to take office within days, the transfer of power promises more turbulence. On Wednesday the House of Representatives voted to impeach President Donald Trump for a second time, though a Senate trial for Trump likely won’t get underway before his term ends on Jan. 20.
“Investors are looking past that and really concentrating on the stimulus and what that’s going to mean further down the road,”said Chris Gaffney, president of world markets at TIAA Bank.
After years of too-low inflation, the U.S. central bank approved new policy guidance in September, spelling out it would be appropriate to keep rates near zero until inflation has risen to its 2% target and was on track to moderately exceed that level.
“Our eyes are wide open on this,” Powell said. “At the end of the day the public will need to see us allow inflation to move moderately above 2% for a time before the new framework will be seen as fully credible.”
The time to raise rates “is no time soon,” Powell added.
On the virus front, China recorded its first covid-19 death since April as new clusters continued to expand. France said it will extend tighter curfew measures across the country in a bid to halt the spread of the coronavirus.
These are some of the main moves in markets.
Stocks
The S&P 500 Index decreased 0.4% to 3,795.54 as of 4:03 p.m. EST.
The Dow Jones industrial average fell 0.2% to 30,991.52.
The Nasdaq Composite Index declined 0.1% to 13,112.64.
The Stoxx Europe 600 Index jumped 0.7% to 412, the highest in almost 11 months.
The MSCI All-Country World Index increased 0.1% to 661.91.
Currencies
The Bloomberg Dollar Spot Index fell 0.3% to 1,119.64.
The euro was little changed at $1.2161.
The British pound climbed 0.4% to $1.3691, the strongest in almost three years.
The Japanese yen strengthened 0.2% to 103.72 per dollar.
Bonds
The yield on 10-year Treasurys rose four basis points to 1.12%.
Germany’s 10-year yield declined three basis points to -0.55%.
Britain’s 10-year yield dipped two basis points to 0.291%.
Commodities
West Texas Intermediate crude gained 1.3% to $53.60 a barrel, the highest in almost a year.
Rise in Thai export market reliant on supply of Covid-19 vaccine, value of baht
EconJan 15. 2021Aat Pisanwanich, director of the Centre for International Trade Studies
By The Nation
Thailand’s export market this year has been forecast to expand 3.6 per cent to US$237.2 billion provided the global economy and the economies of trading partners recover, said Aat Pisanwanich, director of the Centre for International Trade Studies at the University of the Thai Chamber of Commerce.
This forecast is also based on the scenario that up to 40 per cent of the world’s population is inoculated against Covid-19 and the vaccine is effective in preventing infections.
The other positive factor is that Thailand is now a member of the Regional Comprehensive Economic Partnership – the world’s largest free-trade agreement.
However, if the vaccine supply fails to cover 40 per cent of the global population, then export could contract 0.8 per cent.
Risk factors this year include inadequate vaccine supply and further strengthening of the baht. It is estimated that a 1 per cent rise of the baht will shave 0.11 per cent off the value of exports. If the baht stays at Bt30 per US dollar, then it will bring the value of exports down by 0.5 per cent or by US$1.039 billion.
Other risk factors are a shortage of containers, which will boost the cost of exports by three to five times.
Stock gurus on Thursday picked a range of shares for this year’s volatile market conditions.
Asia Plus Securities’ executive vice president Therdsak Thaveeteeratham said he expected the Stock Exchange of Thailand (SET) to hit 1,550 points this year if the central bank maintains its 0.5 per cent interest rate, but hit 1,646 if the rate is cut to 0.25 per cent.
As stocks usually overperform in the first quarter, he recommended that investors buy shares that generate high dividends, such as DCC at 8 per cent, AP at 6.25 per cent and ADVANC at 3.62 per cent.
Also recommended were shares in KBANK, which are benefiting from the economic recovery, GULF which are benefiting from the influx of foreign funds, and PTT, which are generating annual dividends of 3 per cent.
Capital Nomura Securities Analyst Koraphat Vorachet expected the SET to move between 1,300 and 1,680 points this year with the earnings-per-share ratio at Bt88 amid foreign fund inflows and the economic recovery.
He added that the index would face mass selloffs in the second half of 2021 if turnover of SET-listed companies is worse than expected.
He advised investors to buy shares in companies profiting from the “new normal” technology transition (KCE, HANA, GULF and GPSC), cyclical shares (PTT, TOP, VNT and SCGP), finance-services shares that benefit from the economic recovery and low-interest rate (SAWAD and SYNC), and retail and tourism shares whose price would increase in the second half (CPALL and CENTEL).
Maybank Kim Eng Securities managing director Sukit Udomsirikul expects the SET to hover around 1,500 this year depending on the new US administration’s policy, Covid-19 vaccination, low-interest rates, US-China trade talks, and Thailand’s political situation.
He picked 10 shares benefiting from trends in the modern economy – BDMS, EA, MINT, SCGP, SPALI, IIG, IP, THREL, TNP and WICE.
Kasikorn Securities deputy managing director Passakorn Linmaneechote said the Thai stock market will be buoyed by the influx of foreign funds amid a weakening dollar, resulting in the recovery of cyclical shares in sectors such as industry, banking and property.
He recommended investing in KTB, BLA, BAM, BDMS, CPN, MINT, PTTGC, PSL, GPSC and DOHOME.
EconJan 14. 2021Tourism and Sports Minister Phipat Ratchakitprakarn (Photo credit: Thai Government)
By The Nation
The National Tourism Policy Committee has approved the Tourism and Sports Ministry’s proposal to collect a Bt300 fee from every tourist entering the country, said minister Phipat Ratchakitprakarn on Thursday.
The online fee will become effective once the measure is published in the Royal Gazette.
The money collected will go to the tourism promotion fund.
Phipat said the fee would help fund management and development of Thai tourism, as well as insurance for foreign tourists during their stay.
The next step is for state agencies to draw up details of the fee collection.
About 10 million foreign tourists are expected to visit Thailand this year.
Meanwhile the committee also viewed the status of the Special Tourist Visa (STV) scheme, which came into effect in September last year.
As of January 11, a total of 1,114 tourists had entered Thailand on STVs, with another 123 set to arrive this month.
The Stock Exchange of Thailand (SET) Index closed at 1,535.98 on Thursday, down 11.33 points or 0.73 per cent. The volume of total transactions was Bt97.20 billion with an index high of 1,552.78 and a low of 1,533.52.
In the morning session, an analyst at Krungsri Securities expected the day’s index to fluctuate between 1,535 and 1,560 points as investors kept an eye on US President-elect Joe Biden’s stimulus proposals, the US political situation after the House of Representatives impeached President Donald Trump, and the announcement of banks’ 2020 turnover.
“Also, the decline in foreign fund flows will cause index volatility,” he said.
The 10 stocks with the highest trade value today were CPALL, TASCO, SCGP, PTT, EA, GPSC, PTTEP, CBG, DELTA and SCC.
As of 4.30pm, the price of oil rose by US$0.24 or 0.45 per cent to $52.67 per barrel, while gold rose by $12.90 or 0.70 per cent, to $1,842 per ounce.
Other Asian indices were mixed:
Japan’s Nikkei Index closed at 28,698.26, up 241.67 points or 0.85 per cent.
China’s Shang Hai SE Composite Index closed at 3,565.90, down 32.75 points or 0.91 per cent, while Shenzhen SE Component Index closed at 15,070.13, down 295.30 points or 1.92 per cent.
Hong Kong’s Hang Seng Index closed at 28,496.86, up 261.26 points or 0.93 per cent.
South Korea’s KOSPI Index closed at 3,149.93, up 1.64 points or 0.052 per cent.
Taiwan’s TAIEX Index closed at 15,707.19, down 62.79 points or 0.40 per cent.
In a first for Thailand’s warrants market, JP Morgan has issued derivative warrants linked to the Nasdaq-100, a US index that tracks the performance of the 100 biggest non-financial companies by market capitalisation listed on Nasdaq.
Linked to the movements of the E-mini Nasdaq-100 Futures prices, the four newly issued warrants (NDX41 DW) began trading on the Stock Exchange of Thailand on Thursday.
“The new warrants will provide local investors exposure to one of the world’s pre-eminent large-cap growth indexes that boasts some of the largest domestic and international companies listed on the Nasdaq Stock Market,” said Yowjie Chien, head of Global Options Electronic Client Solutions and Global Warrants at JP Morgan.
“The two calls and two puts options over Nasdaq-100 have varying strikes ranging at index levels from 9,500 to 15,900, providing investors with varying risk appetites and more choices under different market conditions,” Chien said.
The Nasdaq-100 warrants mark JP Morgan’s second investment instrument that offers Thai retail investors exposure to US markets during local trading hours, following the launch of its S&P 500 warrants in September last year.
“Investors in Thailand are always looking for opportunities to diversify their portfolios and we are excited to be able to broaden their access to foreign markets,” said Pakorn Buranakul, chief executive officer of JPMorgan Securities (Thailand) Limited.
“We will continue to work closely with the regulators to expand our product offerings to meet the demand of Thai investors,” he added.
The Nasdaq-100 was among the top performing US stock indexes in 2020, ending the year with a gain of 45 per cent based on index levels.
JP Morgan launched its derivatives warrants business in Thailand in 2018 and has since listed more than 1,000 warrants on the Stock Exchange of Thailand.
The Stock Exchange of Thailand (SET) Index fell by 0.78 points, or 0.05 per cent, to 1,546.53 in the morning session on Thursday.
An analyst at Krungsri Securities expected the day’s index to fluctuate between 1,535 and 1,560 points as investors keep an eye on US President-elect Joe Biden’s economic stimulus proposals, the US political situation after the House of Representatives impeached President Donald Trump and banks’ 2020 turnover results set to be announced.
“Besides, the decline in foreign fund flows would cause index volatility,” he said.
He recommended investors buy:
> Shares related to green energy and electric vehicles, such as EA, GPSC and KCE.
> PTTEP, PTTGC, Top and IVL, which benefit from a rising oil price and improved fourth-quarter performance.
> PSL, TTA and RCL, which would benefit from a rise in the freight rate.
The SET Index closed at 1,547.31 on Wednesday, up 7.46 points, or 0.48 per cent. Total transactions amounted to Bt106.7 billion, with an index high of 1,561.66 points and a low of 1,542.42.
The price of gold dropped by Bt100 per baht weight in morning trade on Thursday, the Gold Traders Association reported.
As of 9.23am, the buying price of a gold bar was Bt26,150 per baht weight and selling price Bt26,250 while gold ornaments cost Bt25,681.04 and Bt26,750, respectively.
At close on Wednesday, the buying price of a gold bar was Bt26,250 per baht weight and selling price Bt26,350 while gold ornaments cost Bt25,772 and Bt26,850, respectively.
The spot gold price moved to US$1,845 (Bt55,403) per ounce in the morning, while the Comex (Commodity Exchange) gold price to be delivered in February rose by $10.70 to $1,854.90 per ounce on Wednesday, thanks to mass buy-ups of safe-haven assets to deal with inflation after the US Consumer Price Index increased in December.
Also, gold gained positive sentiment from hopes of a rollout of fresh US economic stimulus measures.
The Hong Kong gold price meanwhile dropped by HK$70 to $17,090 (Bt66,188) per tael, the Chinese Gold and Silver Exchange Society reported.
Deputy Prime Minister Supattanapong Punmeechaow
American flags outside the New York Stock Exchange in New York on Jan. 4, 2021. MUST CREDIT: Bloomberg photo by Michael Nagle.
Aat Pisanwanich, director of the Centre for International Trade Studies
Tourism and Sports Minister Phipat Ratchakitprakarn (Photo credit: Thai Government)
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