#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

Business confidence index dropped in Dec due to new Covid wave: UTCC

EconJan 12. 2021

By The Nation

A survey of 369 Thai Chamber of Commerce members found that the confidence index at the end of 2020 had dropped from 33.7 to 31.8 – the lowest since July – due to the new wave of Covid-19 infections, the University of the Thai Chamber of Commerce (UTCC) said.

The new wave directly affected the economy as events were cancelled and people could not celebrate the arrival of the new year.

The confidence index for the next six months is expected to remain below 50 because the business sector is unsure about the current situation, said Thanawat Phonwichai, director of UTCC’s Centre for Economic and Business Forecasting.

Confidence dropped last month due to fears of widespread infections affecting people’s lives, business and economy, concern of a lockdown and the strengthening of the currency.

However, the index was propped up by the Monetary Policy Committee’s resolution to maintain the policy rate at 0.5 per cent to support recovery and the second phase of stimuli like the government’s “Khon La Khrueng” co-paying campaign, “Rao Tiew Duay Kan” travel campaign and “Shop Dee Mee Kuen” (Shop and Payback) campaign.

“If the virus cannot be contained in the next three months, it will have an adverse impact on the employment sector. The unemployment rate is currently 2 per cent, but if it rises, the economy will be affected,” Thanawat said.

UTCC’s Centre for Economic and Business Forecasting expects Thailand’s gross domestic product (GDP) to rise only 2.2 per cent from the previously expected 2.8 per cent due to a number of uncontrollable factors.

The business sector, meanwhile, is urging the government to offer financial reprieve by reducing interest rate, delaying tax payment and helping support employment. They also want the government to bring the outbreak under control quickly to stimulate investment and inject money into the economy before it collapses.

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

Finance Ministry urges Cabinet to okay Bt200-bn cash injection

EconJan 12. 2021Finance Minister Arkhom Termpittayapaisith

By The Nation

The Finance Ministry has called on the Cabinet to allow a Bt200-billion cash injection in the economy to support businesses and people who have been affected by the new round of Covid-19 infections.

“The government does not need to borrow more money, as we can use what is left of last year’s Bt1-trillion emergency loan,” Finance Minister Arkhom Termpittayapaisith said after a meeting with Prime Minister Prayut Chan-o-cha on Monday. 

The Cabinet is set to launch a new relief package on Tuesday to help businesses and workers who have been hit by the second round of the outbreak. 

As for calls for a Bt4,000 cash handout to affected people for two months, Arkhom said he did not know how to justify such compensation. He also did not confirm whether the government will repeat last year’s Bt5,000 three-month cash handout.

Under the Finance Ministry’s plan, state banks like the Government Savings Bank (GSB), Bank for Agriculture and Agricultural Cooperatives (BAAC) and the Small and Medium Enterprise Development Bank of Thailand will provide liquidity to clients.

This support will include debt holiday and interest rate cut, Kulaya Tantitemit, acting director-general of the Fiscal Policy Office, said on Monday.

She said the ministry has up to Bt200 billion in hand, adding that state banks had offered similar relief after the first round of the outbreak. 

GSB’s debt holiday ended at the end of last year, while BAAC’s is due to expire in June this year. 

A source in the financial market said the central bank and commercial banks are also expected to offer debtors new relief measures, like extending debt repayment period, cutting interest rate or allowing partial payment. In the first round of the outbreak last year, banks offered debt holidays and many clients have recently resumed payments, though some are asking for a suspension of their debt. 

Kobsak Duangdee, secretary-general of the Thai Bankers’ Association, said the Bank of Thailand (BOT) has talked to commercial banks about new measures that can be introduced to support borrowers, adding that BOT expects to launch 

relief measures for specific target groups. At the same time, commercial banks will also implement new measures to support businesses. 

Dechapiwat Na Songkhla, director of the Budget Bureau, said the government still has Bt400 billion of the Bt1-trillion emergency loan left. The government has also set aside Bt130 billion as a contingency fund to deal with Covid-19 and other potential disasters such as severe drought or floods. 

Kulit Sombatsiri, the Energy Ministry’s permanent secretary, said the ministry has also proposed measures to ease the burden of people affected by the virus fallout. However, he did not elaborate, only saying that more information will be available after the Cabinet’s approval on Tuesday. 

Observers believe the government may subsidise utilities, such as electricity and water. 

Kulit also said the ministry will push state agencies under its supervision like PTT and the Electricity Generating Authority of Thailand to make new investments this year, as energy consumption has not dropped despite the surge of infections. 

He said the ministry will also spend Bt6.5 billion of the Energy Conservation Fund and is now open to proposals from agencies under its supervision. The ministry will also earmark Bt25 million for each of the 77 provinces, he added. 

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

Influx of foreign funds expected despite drop in confidence index: Fetco

EconJan 12. 2021

By The Nation

The Federation of Thai Capital Market Organisations (Fetco) Investor Confidence Index for the next three months has fallen by 19.1 per cent to 130.63 due to uncertainty over recovery of the tourism industry, global conflicts, economic slowdown and new round of Covid-19 infections.

Fetco chairman Paiboon Nalinthrangkurn, however, said investors’ confidence remains high over hope for an influx of foreign funds, economic recovery and better turnover from listed companies.

He added that investors were drawn to shares in the banking, petrochemical and technology industries, and had no interest in shares in the tourism, fashion and print media industries.

Paiboon said the Thai stock market could hit 1,600 points by the end of this year on hopes over Covid-19 vaccine, but it would face short-term correction due to uncertainty over the vaccine’s side effects and US President-elect Joe Biden’s failure to boost the economy.

“The Thai stock market, however, will not face immediate correction because the market has not reached the level before the Covid-19 pandemic arrived,” he said.

He said the stock market would move into positive territory in the long term thanks to the influx of foreign funds, government measures to contain the spread of Covid-19 and to stimulate the economy, growth in listed companies’ turnover, high market liquidity, baht appreciation and low interest rate.

He said political unrest will not affect the market.

“These positive points will draw foreign investors to buy cyclical stocks such as shares in banking, energy, oil refinery, petrochemical, ICT and retail sectors,” he said, adding that shares in the tourism industry will require more time to recover.

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

Thai stocks level out as weakening baht, virus threaten volatility

EconJan 11. 2021

By The Nation

The Stock Exchange of Thailand (SET) Index closed at 1,536.49 on Monday, up 0.05 points (0 per cent). Total transactions amounted to Bt93.80 billion with an index high of 1,550.75 and a low of 1,527.75.

In the morning session, an analyst at Krungsri Securities forecast the day’s index would hit 1,550 points on hopes of US stimulus measures and the sharp rise in the price of oil.

“However, investors should beware of volatility due to the weakening baht and the surge in Covid-19 cases,” he said.

The 10 stocks with the highest trade value today were KTC, EA, DELTA, HANA, ADVANC, GPSC, PTT, CPALL, IVL and PTTGC.

As of 4.30pm, the price of oil dropped by US$0.25 or 0.48 per cent to $51.99 per barrel, while gold rose by $15.20 or 0.83 per cent, to $1,850.60 per ounce.

Other Asian indices were mixed:

China’s Shang Hai SE Composite Index closed at 3,531.50, down 38.61 points or 1.08 per cent, while Shenzhen SE Component Index closed at 15,115.38, down 203.91 points or 1.33 per cent.

Hong Kong’s Hang Seng Index closed at 27,908.22, up 30.00 points or 0.11 per cent.

South Korea’s KOSPI Index closed at 3,148.45, down 3.73 points or 0.12 per cent.

Taiwan’s TAIEX Index closed at 15,557.30, up 93.35 points or 0.60 per cent.

Japan’s Nikkei Index was closed for Coming of Age Day.

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

Brexit deal actually a blessing for Thailand, says trade policy chief

EconJan 11. 2021

By The Nation

The Brexit agreement that Britain has reached with its European Union (EU) partners will not only benefit the United Kingdom, but also Thailand, said Pimchanok Vonkorpon, director-general of the Commerce Ministry’s Trade Policy and Strategy Office (TPSO).

Though the trade agreement allows the UK and EU to continue trading with zero tariff and zero quota, the customs clearance process and health requirements have become more complicated and expensive. 

Thailand, however, will benefit greatly not just from the new UK tax rate structure but also from more trading opportunities, especially since 732 new items have been added to the original list of 792 items exempted from tax. 

Items benefiting from lower import tariff include processed chicken, rubber gloves, tires, auto equipment and parts, jewellery, sauces and petfood, etc. 

The Commerce Ministry is also focusing on negotiating a free-trade agreement (FTA) with the UK, Pimchanok said, adding that Thailand stands to gain significantly if an FTA is signed. 

In the first 11 months of last year, Thailand exported US$2.83 billion worth of goods to the UK, accounting for 1.3 per cent of the total export market, marking a drop of 20.8 per cent compared to the previous period. Meanwhile, imports from the UK stood at $1.64 billion for the same period, marking a drop of 26.7 per cent and a trade surplus of $1.19 billion, which dropped by 10.8 per cent. 

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

Shares in BAM drop 2% after NPL auction suspended in Jan

EconJan 11. 2021

By The Nation

Shares in Bangkok Commercial Asset Management (BAM) opened over 2 per cent down on Monday after the Legal Execution Department suspended January’s auction of non-performing loans in response to the Covid-19 outbreak.

At Friday’s close, BAM’s stock price had dropped by Bt0.60 or 2.73 per cent to Bt21.40 per share.

Asia Plus Securities said the Legal Execution Department’s move would affect BAM’s non-performing loans (NPLs) sales, which accounted for 69 per cent of the company’s revenue in the first nine months last year.

The securities company added that the Legal Execution Department would extend the suspension of auction sales until February if Thailand cannot contain the spread of Covid-19.

“We expect BAM’s net profit last year to drop by 69.3 per cent due to a two-month closure of the Legal Execution Department in response to the Covid-19 outbreak, but rise by 60.2 per cent this year amid the economic recovery, the securities company said.

“Also, we expect the company to focus on selling non-performing assets online to mitigate the impact of the Legal Execution Department’s temporary closure.”

The securities company also forecast BAM shares’ future value (FV) at Bt26 per share this year based on net asset value of Bt84 billion, advising investors to switch shares.

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

Second Covid-19 wave gives hospital shares a boost

EconJan 11. 2021

By The Nation

The price of hospital shares began to rise in the Stock Exchange of Thailand amid higher revenue prospects from the second Covid-19 wave.

Hospitals can generate revenue from conducting Covid-19 tests, opening their facilities to serve as alternative hospital quarantine and deputing medical personnel to alternative state quarantine facilities.

After receiving approval from the Food and Drug Administration, hospitals will be able to procure Covid-19 vaccine to vaccinate people as well.

An analyst at DBS Vickers Securities said the government’s partial lockdown to deal with the pandemic would have a short-term impact on hospital share price because the number of people using medical services would increase once the Covid-19 vaccine arrives.

“We expect hospital business to gain positive sentiment from an ageing society, and medical tourism which is likely to expand,” he said, adding that Thai expenditure on health would increase from Bt415 billion in 2018 to between Bt1.407 trillion and Bt1.825 trillion in 2030.

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

SET shows optimism amid rise in oil price, hopes of US stimulus measures

EconJan 11. 2021

By The Nation

The Stock Exchange of Thailand (SET) Index rose by 9.43 points, or 0.61 per cent, to 1,545.87 in the morning session on Monday.

An analyst at Krungsri Securities predicted the day’s index to hit 1,550 points on hopes of US economic stimulus measures and the sharp rise in oil price.

“However, investors should beware of volatility due to the weakening baht and the surge in Covid-19 cases,” he said.

He recommended that investors buy:

▪︎ PTTEP, PTTGC, TOP and IVL, which benefit from rising oil price and improved fourth-quarter performance.

▪︎ PSL, TTA and RCL, which would benefit from the rise in freight rate.

▪︎ KBANK, SCB, BBL and BLA, which benefit from rising US bond yield.

The SET Index closed at 1,536.44 on Friday, up 22.66 points or 1.50 per cent. The volume of total transactions was Bt125.08 billion with an index high of 1,538.61 and a low of 1,521.17.

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

Strengthening dollar, rise in US bond yield drag gold down

EconJan 11. 2021

By The Nation

The price of gold slumped by Bt300 per baht weight in morning trade on Monday, the Gold Traders Association reported.

As of 9.25am, the buying price of a gold bar was Bt26,050 per baht weight and selling price Bt26,150, while gold ornaments were priced at Bt25,574.92 and Bt26,650, respectively.

At close on Saturday, the buying price of a gold bar was Bt26,350 per baht weight and selling price Bt26,450, while gold ornaments were Bt25,878.12 and Bt26,950, respectively. The price slumped by Bt500 per baht weight last week.

Spot gold moved to US$1,829 (Bt55,135) per ounce in the morning, while the Comex (Commodity Exchange) gold to be delivered in February fell by $78.2, or 4 per cent, to $1,835.4 per ounce on Friday due to the rise in US bond yield and strengthening dollar.

Hong Kong gold price, meanwhile, was down by HK$440 to $17,050 (Bt66,284) per tael, the Chinese Gold and Silver Exchange Society reported.

#SootinClaimon.Com : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

Shipping council sees bright outlook for some industries like textile in 2021

EconJan 11. 2021

By The Nation

The Thai National Shippers’ Council projects a brighter outlook in the export of textiles, garment and machinery this year, the council’s vice chairman Visit Limluecha said.

The council classified products under three categories: V or double-digit growth; U or single-digit growth; and L or no growth or contraction.

Industries in the V-growth group include textile and garment, machinery, finished oil and rice. Double-digit growth is expected for these products because they showed low contraction late last year.

The garment and textile sector dropped 18 per cent last year, while machinery and machine equipment fell 9.2 per cent.

Meanwhile, U-shaped growth is expected for automotive and component parts, electric and electronics appliance, food, rubber, cassava and jewellery and gems.

No growth or L-shaped growth is expected for industries like sugar, plastic pellets and products made of plastic pellets.

He said this is because major sugar producers like Brazil have released massive amounts of sugar and alcohol, causing a glut in the global market.

The council has forecast that sugar exports will suffer a drop of between 7 and 10 per cent, the same as in 2020.

Visit added that the Covid-19 pandemic will still be a key factor in affecting industries globally, especially in relation to luxury items, though market competition will intensify if manufacturers launch promotions.