The share price of Delta Electronics (Delta) slumped by Bt86, or 13.10 per cent, to Bt570 per share in the morning session on Wednesday after the Stock Exchange of Thailand (SET) imposed cash balance regulations on the company’s shares until January 26 this year.
The SET’s cash balance regulations force investors to buy shares with cash balance account only.
However, Anusorn Muttaraid, director of Delta, denied the SET’s suggestions the company’s moves had impacted its share price, such as raising capital, joint venture or trading assets.
The price of gold rose by Bt50 per baht weight in morning trade on Wednesday, the Gold Traders Association reported.
As of 9.24am, the buying price of a gold bar was Bt27,500 per baht weight and selling price Bt27,600, while gold ornaments were priced at Bt26,999.96 and Bt28,100, respectively.
At close on Tuesday, the buying price of a gold bar was Bt27,450 per baht weight and selling price Bt27,550, while gold ornaments were Bt26,954.48 and Bt28,050, respectively.
Spot gold price moved to US$1,948 (Bt58,339) per ounce in the morning, while Comex (Commodity Exchange) gold price to be delivered in February rose by $7.8 to $1,954.4 per ounce on Tuesday, riding on mass buy-ups of safe-haven assets amid key elections in the US state of Georgia that will decide which party controls the US Senate for the next two years.
Hong Kong gold price rose by HK$80 to $18,030 (Bt69,645) per tael, the Chinese Gold and Silver Exchange Society reported.
The Stock Exchange of Thailand (SET) Index rose by 2.92 points, or 0.19 per cent, to 1,509.57 in the morning session on Wednesday.
An analyst at Krungsri Securities forecast the day’s index to fluctuate between 1,490 and 1,520 amid rising oil price and Thailand’s partial lockdown, resulting in positive sentiment for investment.
“However, investors should beware of market volatility after the SET imposed cash balance regulations on Delta Electronics shares,” 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.
▪︎ TQM, STGT, AJ, PTL, SYNEX and COM7, which benefit from the Covid-19 outbreak.
The SET Index closed at 1,506.65 on Tuesday, up 38.41 points or 2.62 per cent, while total transactions stood at Bt115.29 billion with an index high of 1,506.66 and a low of 1,466.05.
By Syndication Washington Post, Bloomberg · Javier Blas, Salma El Wardany, Grant Smith
Saudi Arabia surprised the oil market with a large reduction in its output in February and March, carrying a greater burden of OPEC+ cuts while others hold steady or make small increases.
The kingdom will make an extra cut of 1 million barrels a day, Saudi Energy Minister Prince Abdulaziz bin Salman said on Tuesday. That more than offsets the combined 75,000 barrel-a-day increase Russia and Kazakhstan will be allowed to make in each of those months. The rest of the group will hold output steady.
The Saudi pledge makes for a tighter market than traders had been anticipating and sent crude surging to a 10-month high in New York. It shows how worried the kingdom is about the impact of Europe’s resurgent coronavirus pandemic on oil demand, but also its determination to avoid a new price war with Russia.
Both countries get at least part of what they wanted — the additional price support desired by Riyadh and the production boost Moscow had been pushing. Still, the contortions that were necessary to secure a consensus after two days of OPEC+ talks show the fragility of the alliance.
The de facto leaders of OPEC+ have different priorities, with Russia wanting to boost production before U.S. shale drillers fill the gap, while Saudi Arabia prefers to sacrifice volume in exchange for higher prices.
The agreement means the global market will get far less supply than traders had been expecting before this week. The OPEC+ meeting opened on Monday with a proposal from Russia for a 500,000 barrel a day output hike next month, which was opposed by most other members. The alliance had been scheduled to discuss similar-sized increases in March and April, but that plan has been superseded by the latest accord.
By Syndication Washington Post, Bloomberg · Rita Nazareth, Vildana Hajric
Stocks rose and bonds dropped amid key elections in Georgia that will decide which party controls the U.S. Senate for the next two years, setting the scope of President-elect Joe Biden’s agenda.
In a session marked by thin trading volume, the S&P 500 rebounded after suffering its worst start to a year since 2016. Energy shares surged as oil traded near $50 a barrel, while the Russell 2000 Index of smaller companies jumped 1.7%. With markets factoring in a greater chance of a Democratic sweep in Congress, some analysts see the potential for increased volatility. In anticipation to the outcome of the vote, which will likely be known on Wednesday, Treasury yields climbed — with a key curve measure reaching its steepest level in four years. The dollar slid to the lowest since February 2018.
Whether or not Wall Street is getting more comfortable with the idea of Democrats taking control of both chambers of Congress, the scenario implies the possibility of a more generous stimulus package. That could also potentially lead to upward pressure on inflation and interest rates as well as higher taxes to pay for fiscal aid. Conversely, should either Republican incumbent win reelection, the party would have enough votes to block any Biden initiative.
“We don’t view a Democrat Senate as a bearish game changer in the short term because there would still be a lot of positives in this market,” Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter, wrote in a note to clients. “We’d look to buy on any material dip, but we should brace for more volatility going forward if that’s the outcome from today’s election.”
Meanwhile, President Donald Trump failed again to invalidate his election loss in Georgia and allow the state’s Republican-led legislature to declare him the winner — his latest courtroom defeat in a quixotic effort to remain in office despite losing the Nov. 3 vote.
Another news development that caught investors attention on Tuesday was the New York Stock Exchange’s surprise move to spare three major Chinese telecommunications companies from being delisted. Treasury Secretary Steven Mnuchin called NYSE Group Inc. President Stacey Cunningham to express his disapproval with the decision, according to two people familiar with the matter. Several U.S. officials said the move marks a temporary reprieve, not a sign that tensions between Washington and Beijing are easing.
Elsewhere, Saudi Arabia surprised the oil market with a large reduction in its output for February and March, carrying a greater burden of OPEC+ cuts while other producers hold steady or make small increases.
These are some of the main moves in markets:
Stocks
– The S&P 500 rose 0.7% as of 4 p.m. EST.
– The Stoxx Europe 600 Index declined 0.2%.
– The MSCI Asia Pacific Index climbed 1.1%.
Currencies
– The Bloomberg Dollar Spot Index sank 0.5%.
– The euro increased 0.4% to $1.2297.
– The Japanese yen appreciated 0.5% to 102.66 per dollar.
Bonds
– The yield on 10-year Treasuries rose three basis points to 0.94%.
– Germany’s 10-year yield gained three basis points to -0.58%.
– Britain’s 10-year yield gained four basis points to 0.209%.
Commodities
– West Texas Intermediate crude surged 4.9% to $49.93 a barrel.
Prime Minister Prayut Chan-o-cha on Tuesday pledged to support 40 million people who have been affected adversely by the new surge of Covid-19 infections.
The authorities have implemented restrictions in many provinces that have been hit by the virus, which is impacting businesses and the daily life of people nationwide.
Prayut said he has told Deputy Prime Minister Supattanapong Panmeechao, Finance Minister Apisak Tanitvorawong and senior officials at the National Economic and Social Development Council to come with additional measures to support the public for the next two months.
The new relief measures, aiming to cover some 40 million people, will require large sums of money, but “we have adequate funds to deal with the issue”, the premier promised.
Some existing measures such as domestic travel subsidy will be extended, with hotels being asked to allow people who have booked rooms to delay their travel plans until the situation gets better. The prime minister was speaking after the Cabinet meeting on Tuesday.
Meanwhile, government spokesman Anucha Burapachaisri said the new measures will be different from previous ones because the government has not imposed strict lockdown restrictions this time. The Cabinet has also not discussed the option of cash handouts this time around, after the government gave people affected by the first round of Covid-19 outbreak last year Bt5,000 each for three months.
Government agencies have been asked to see if existing measures such as the subsidy for daily necessities and discounts for domestic travel should be extended, he said.
Other potential measures include subsidising utilities to reduce the cost of living for people during Covid-control measures. Details of this will be discussed by the government’s Centre for Economic Situation Administration, he added.
Officials had earlier said the government still has Bt400 billion left from the Bt1-trillion emergency loan launched last year.
Under this new wave of Covid-19 outbreak, the authorities have ordered the temporary closure of many venues including boxing rings, sports centres, gyms, pubs and bars. Restaurants, meanwhile, are only allowed to serve until 9pm and owners are required to impose social-distancing rules.
Inter-provincial travel is still allowed and transportation services are in full operation, unlike last year when inter-provincial land and air transport was suspended.
Separately, the Cabinet has also approved the framework of the Bt3.1 trillion budget bill for fiscal 2022, which is 5.66 per cent lower than the budget for the current fiscal year. Current spending (including official salaries) has been set at Bt2.4 trillion, accounting for 75.95 per cent of the total budget and capital spending at Bt620 billion, or 20 per cent of the total budget. The government has earmarked Bt100 billion for principal debt payment, accounting for 3.22 per cent of total expenditure.
The Finance Ministry projects tax revenue worth Bt2.4 trillion, resulting in a budget deficit of Bt700 billion, which is equivalent to 4.04 per cent of the GDP. The ministry has forecast an economic expansion of between 3 to 4 per cent next year with inflation coming in at between 0.7 and 1.17 per cent.
The new fiscal year starts in October this year and ends next September. The budget bill needs to be approved by Parliament before it becomes law.
The Stock Exchange of Thailand (SET) Index closed at 1,506.65 on Tuesday, up 38.41 points or 2.62 per cent, while total transactions stood at Bt115.29 billion with an index high of 1,506.66 and a low of 1,466.05.
In the morning session, an analyst at Krungsri Securities expected the day’s index to fluctuate between 1,460 and 1,480 amid uncertainty over the coronavirus mutation and US President-elect Joe Biden’s bid to increase taxes.
“However, the inflow of funds and the Thai government’s zoning lockdown will help boost the SET,” he said.
The top 10 stocks with the highest trade value today were EA, GPSC, DELTA, GULF, PTT, CPALL, CPF, BGRIM, KCE and IVL.
As of 4.30pm, the price of oil rose by US$0.06 or 0.13 per cent to $47.68 per barrel, while gold dropped by $1 or 0.05 per cent, to $1,945.60 per ounce.
Other Asian indices were mixed:
Japan’s Nikkei Index closed at 27,158.63, down 99.75 points or 0.37 per cent.
China’s Shanghai SE Composite Index closed at 3,528.68, up 25.72 points or 0.73 per cent, while Shenzhen SE Component Index closed at 15,147.57, up 320.10 points or 2.16 per cent.
Hong Kong’s Hang Seng Index closed at 27,649.86, up 177.05 points or 0.64 per cent.
South Korea’s KOSPI Index closed at 2,990.57, up 46.12 points or 1.57 per cent.
Taiwan’s TAIEX Index closed at 15,000.03, up 98.00 points or 0.66 per cent.
Stocks of power plants rose sharply on Monday as the new wave of Covid-19 infections has triggered investors to opt for safe stocks, experts said.
At closing on Monday, the share price of Energy Absolute (EA) had risen by 8.63 per cent to Bt53.50, Global Power Synergy (GPSC) rose by 7.12 per cent to Bt79, B Grimm Power (BGRIM) rose by 5.15 per cent to Bt51 and Gulf Energy Development (GULF) rose by 3.65 per cent to Bt35.50.
Sorrabhol Virameteekul, Kasikorn Securities senior vice-president, said power plant stocks have risen sharply due to investors’ move to seek safe stocks that can generate regular revenue amid worries over the Covid-19 outbreak.
He added that the price of power plant stocks have risen beyond 30 per cent since the start of the Covid era in March last year.
“We recommend investing in power plant shares, but investors should pick shares that are not higher than the fundamentals and are likely to rise, such as GPSC and EGCO,” he said.
Yuanta Securities investment analyst Piyapat Patarapuvadol said investors were seeking stocks that are cheap but whose performance has improved.
He added that power plant shares also gained positive sentiment from the trend of electric vehicles and appreciation of the baht.
“Many investors placed their hopes on GPSC shares in response to the news of PTT Exploration and Production [PTTEP] seeking power plant partners,” he added.
The Stock Exchange of Thailand (SET) Index rose by 9.44 points, or 0.64 per cent, to 1,477.68 in the morning session on Tuesday.
An analyst at Krungsri Securities expected the day’s index to fluctuate between 1,460 and 1,480 amid uncertainty over the coronavirus mutation and US President-elect Joe Biden’s measure to increase the tax rate.
“However, the inflow of funds and the Thai government’s zoning lockdown would help boost the SET,” 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 the Baltic Dry Index.
▪︎ TQM, BLA, STGT, AJ, PTL, SYNEX and COM7, which benefit from the Covid-19 outbreak.
The SET Index closed at 1,468.24 on Monday, up 18.89 points or 1.30 per cent. Total transactions amounted to Bt89.20 billion with an index high of 1,468.27 and a low of 1,425.48.
The price of gold rose by Bt100 per baht weight in morning trade on Tuesday, the Gold Traders Association reported.
As of 9.26am, the buying price of a gold bar was Bt27,300 per baht weight and selling price Bt27,400 while gold ornaments were priced at Bt26,802.88 and Bt27,900, respectively.
At close on Monday, the buying price of a gold bar was Bt27,200 per baht weight and selling price Bt27,300 while gold ornaments were Bt26,711.92 and Bt27,800, respectively.
The Comex (Commodity Exchange) gold price to be delivered in February rose by US$51.25, or 2.72 per cent, closing at $1,946.6 (Bt59,702) per ounce on Monday, the highest since November 6 last year and the highest single-day rise since April 22 last year.
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