The Stock Exchange of Thailand (SET) Index rose by 7.13 points, or 0.48 per cent, to 1,484.34 in the morning session on Wednesday.
The top 10 stocks with the highest trade value in the morning session were CPAll, Banpu, PTTGC, KBank, BAM, PTT, SCC, AOT, IVL and IRPC.
The SET Index closed at 1,477.21 on Tuesday, up 1.08 points, or 0.07 per cent. The volume of total transactions was Bt91.74 billion, with an index high of 1,478.61 points and a low of 1,459.97.
The price of gold rose by Bt100 per baht weight in morning trade on Wednesday after surging by Bt200 per baht weight at close on Tuesday, the Gold Traders Association reported.
As of 9.29am, 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.
At close on Tuesday, 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.
The spot gold price moved to US$1,855 (Bt55,716) per ounce in the morning, while the Comex (Commodity Exchange) gold price to be delivered in February surged by $23.20 to $1,855.30 per ounce on Tuesday, thanks to hopes that the US Congress would approve a new economic stimulus package soon.
Besides, the market is keeping an eye on the US Federal Reserve’s monetary policy meeting to see whether the central bank will continue to ease its monetary policy or not.
The Hong Kong gold price meanwhile rose by HK$90 to $17,120 (Bt66,333) per tael, the Chinese Gold and Silver Exchange Society reported.
By Syndication Washington Post, Bloomberg · Anchalee Worrachate, Vildana Hajric
U.S. stocks halted a four-day losing streak as Congress moved toward a federal spending package that would boost the economy. Treasuries retreated.
The S&P 500 rebounded from its longest slide since September. Senate Majority Leader Mitch McConnell, R-Ky., said he will keep lawmakers in Washington until a deal gets done. The 10-year Treasury yield moved above 0.90% as the Federal Reserve began its two-day meeting. The dollar weakened for a second day. Oil advanced with gold.
Wall Street is growing increasingly confident that Democratic and Republican lawmakers will clinch a bill based on a $748 billion bipartisan proposal that would inject cash directly into the economy as prior benefits begin to expire at the end of the year. The vaccine rollout continues in the U.S. without any major disruptions so far.
“The markets really locked into the optimism trade and it’s been heavily discounting bad news and focusing on good news,” said Olivia Engel, chief investment officer of active quantitative equity at State Street Global Advisors. “I’m not surprised the market chose to focus more on the good news even as lockdown announcements are coming.”
Bristol-Myers Squibb climbed after Goldman Sachs Group added the drugmaker to its conviction buy list. In Europe, Volkswagen rallied 5% after the German carmaker’s board eased internal corporate tensions by backing CEO Herbert Diess. Trading was mixed in other markets. Asian stocks fell the most in two weeks.
While investors are pricing in optimism about the start of vaccine shots, there’s also ongoing concern over whether a stimulus bill from a bipartisan group of lawmakers will gain traction. The virus continued to rage in the U.S., threatening tighter restrictions across the nation. New York City Mayor Bill de Blasio, a Democrat, warned that people should be prepared for a full shutdown. European governments are also tightening measures.
“Stimulus remains a key focus for the market, as it is the necessary bridge to expansive vaccinations,” said Lindsey Bell, chief investment strategist for Ally Invest. “Market participants would like to see a deal sooner rather than later given the expectation for economic data to slow near term. In the absence of a deal, turbulence could pick up.”
In Europe, the pound rose and credit markets strengthened as Brexit negotiators pushed to reach a final trade deal. After a weekend of intense diplomatic activity, Michel Barnier, who leads the E.U. team, said he can see a path to a deal – if the two sides can resolve what he called their significant differences.
– – –
Here are some key events coming up:
– The Federal Reserve meets again Wednesday, with markets widely expecting fresh guidance on its continued asset purchases.
– Policy decisions from the Bank of England and central banks in Mexico, Switzerland and Indonesia are due Thursday. Japan and Russia announce decisions Friday.
These are the main moves in markets:
Stocks
– The S&P 500 Index climbed 1.3% as of 4 p.m. in New York.
– The Stoxx Europe 600 Index increased 0.3%.
– The MSCI Asia Pacific Index decreased 0.3%.
– The MSCI Emerging Market Index was little changed.
Currencies
– The Bloomberg Dollar Spot Index dipped 0.5%.
– The euro rose 0.1%, to $1.2159.
– The British pound climbed 0.9%, to $1.3443.
– The Japanese yen strengthened 0.4%, to 103.64 per dollar.
Bonds
– The yield on 10-year Treasuries climbed two basis points, to 0.91%.
– The yield on two-year Treasuries rose less than one basis point, to 0.12%.
– Germany’s 10-year yield fell three basis points, to -0.61%.
Commodities
– West Texas Intermediate crude increased 1.3%, to $47.28 a barrel
– Gold futures strengthened 1.4%, to $1,858.30 an ounce.
The Electricity Generating Authority of Thailand (Egat) aims to import 1.9 million tonnes of liquefied natural gas (LNG) next year, followed by 1.8 million tonnes per year in 2022 and 2023, said new Egat governor Boonyanit Wongrukmit.
Boonyanit took office on December 4.
The state agency will also ask the Cabinet early next year to approve its plan to call bids for the procurement of a floating storage and regasification unit (FSRU) in the Gulf of Thailand, he added.
It is also seeking opportunities to invest in upstream LNG businesses in the next three to five years. Egat is expanding into the emerging electric vehicle (EV) sector, targeting installation of 31 EV charging stations next year.
The state agency forecasts power demand in Thailand will edge up 4 per cent next year from the estimated 3 per cent year-on-year decline this year.
The Industrial Estate Authority of Thailand (IEAT) is partnering up with state-run TOT to install 5G broadband technology system in 14 industrial estates under its management nationwide, IEAT governor Somchint Pilouk said.
The project is expected to be ready in three years. The first phase will focus on industrial estates in the Eastern Economic Corridor.
The IEAT and TOT will workout details of the project and how much the 5G system rollout will cost in each estate. IEAT has adopted many technological systems to enhance business operations in its estates.
The Board of Investment (BOI) will ask the Cabinet to approve new smart visa rules designed to attract more overseas talent to work in Thailand.
The new rules have already been given the green light by the government’s Centre for Covid-19 Situation Administration (CCSA).
Among the move’s aims is to allow digital freelancers currently working in Thailand to exchange their tourist visas for smart visas. To be eligible, applicants must have an employment contract with a foreign firm lasting at least six months and proof of qualifications and professional experience. BOI partners will help in screening their professional backgrounds.
After receiving the smart visa, their expertise could be tapped by universities, the Digital Economy Promotion Agency, National Innovation Agency, National Science and Technology Development Agency, and others, said BOI deputy secretary general Narit Therdsteerasukdi.
“The [resulting] influx of talent will create a talent pool in the country,” he assured.
Known as digital nomads, the foreign freelancers currently work in Bangkok, Phuket, Chiang Mai and even on Ko Pha-ngan in Surat Thani province, where they have set up a co-working space.
The new visa rules will also cover experienced foreign executives in several businesses – helping to boost development of an investment ecosystem, especially for start-ups. Their expertise could be applied to innovation camps, co-working spaces, advanced materials and packaging, and 3D printing.
The BOI also aims to lure academics to government universities to teach subjects beyond science and technology. These would include innovation, technology management and entrepreneurship.
The new visa rules would allow small businesses to tap foreign talent by reducing the minimum salary they can offer foreigners from Bt100,000 to Bt50,000.
The new rules also relax requirements for executives, reducing the 10 years’ experience and education level (bachelor’s degree) currently required.
So far, 514 foreigners have been granted smart visas since they were adopted in 2018. About half work in digital businesses, followed by automation and robotics. About 47 per cent of them work in start-ups.
Currently, Thailand offers four types of smart visa – the SmartT for talent, Smart E for executives, Smart I for investors, SmartS for start-ups and SmartO for family members.
Holders are permitted to stay up to four years in Thailand without a work permit. The visas also allow travel in and out of the country, as well as fast-track privileges at airports.
The Stock Exchange of Thailand (SET) Index closed at 1,477.21 on Tuesday, up 1.08 points or 0.07 per cent. The volume of total transactions was Bt91.74 billion with an index high of 1,478.61 and a low of 1,459.97.
In the morning session, an analyst at Krungsri Securities said he expected the day’s index to fall to between 1,465 and 1,470 owing to the lack of elements to stimulate investment.
“Besides, the SET will be pressured by the slowdown in foreign funds, uncertainty over the Bank of Thailand’s measures to curb the baht’s appreciation and the index’s tight valuation,” he said
The top 10 stocks with the highest trade value today were KBANK, CPALL, BAM, ADVANC, PTT, IRPC, PTTGC, AOT, IVL and SCC.
As of 4.30pm, the price of oil dropped by US$0.07 or 0.15 per cent to $46.92 per barrel, while gold rose by $16.50 or 0.90 per cent, to $1,848.60 per ounce.
Other Asian indices were on the downslide, except the Shenzhen SE Component Index:
Japan’s Nikkei Index closed at 26,687.84, down 44.60 points or 0.17 per cent.
China’s Shanghai SE Composite Index closed at 3,367.23, down 1.89 points or 0.056 per cent, while Shenzhen SE Component Index closed at 13,763.31, up 71.18 points or 0.52 per cent.
Hong Kong’s Hang Seng Index closed at 26,207.29, down 182.23 points or 0.69 per cent.
South Korea’s KOSPI Index closed at 2,756.82, down 5.38 points or 0.19 per cent.
Taiwan’s TAIEX Index closed at 14,068.52, down 142.53 points or 1 per cent.
The Stock Exchange of Thailand (SET) Index is expected to hit 1,600 points at the beginning of next year thanks to foreign fund inflows, experts said.
Wijit Arayapisit, a research department strategist at Maybank Kim Eng Securities, expects the index to hit 1,600 points from signs of economic recovery, positive news of Covid-19 vaccine, improved liquidity, foreign fund inflow and analysts’ forecast adjustment.
“We expect the economy to recover next year from the lowest point this year, though we do not expect to see a mass sell-off of shares, which was seen in previous years,” he said.
Therdsak Thaveeteeratham, executive vice president for research at Asia Plus Securities, also expects more foreign funds to flow into Thai stock market next year as more foreign investors are paying attention to risk assets.
He expects SET to hit 1,550 points next year from signs of economic recovery as the country’s third-quarter gross domestic product (GDP) showed better than expected results.
“SET skyrocketed in the last two months. Thanks to hopes over Covid-19 vaccine and non-violent political situation which encouraged investors to invest in stock markets, especially in the Asian region,” he said.
Padermpob Songkroh, managing director at Yuanta Securities expected SET in the next six months to rise as the country’s economy is expected to bottom out which can be seen in the improvement of third-quarter GDP.
“Therefore, we expect the country’s GDP in the fourth-quarter this year to rise further,” he said.
Kavee Chukitkasem, deputy managing director at Kasikorn Securities, said he expects SET to hit 1,562 points next year from foreign fund inflow amid the economic recovery.
However, he advised long-term investors not to buy Thai shares because they are overpriced and not very attractive for foreign investors.
“SET may hit 1,600 points as the country’s GDP is expected to rise until the second quarter next year, but the GDP figures will return to normal in the remainder of next year,” he said.
Risks to financial stability in certain areas could rise despite improving economic conditions, and one such area will be the deterioration in households and businesses’ ability to service their debts, the central bank said.
Earlier this month, the Bank of Thailand (BOT) met the Monetary Policy Committee (MPC) and the Financial Institutions Policy Committee (FIPC) to assess risks to Thailand’s financial stability.
The committees said the country is financially sound overall, as commercial banks and insurance companies have substantial capital buffers, while financial markets continued to function properly.
Yet despite the better-than-expected economic outturns, the Thailand’s economic recovery will likely be gradual and uncertain. Risk factors ahead could include the possibility of a second Covid-19 outbreak, the scale of re-opening the country to foreign tourists in 2021 and the continuity of the government’s economic stimulus measures.
Under this environment, risks to financial stability in certain pockets could rise. One key area would be the deterioration in debt serviceability of households and businesses, especially SMEs, which could spill over to other sectors. These risks need to be managed with targeted and timely measures, so the economic momentum is not affected. The committees conducted a comprehensive assessment of financial stability risks and highlighted two priority areas:
• Supporting businesses and households in a targeted and timely manner to contain financial stability risks. Businesses have started re-opening, but are showing different paces of recovery. As a result, support measures – including structural, demand-sided, and financial policies – should be tailored to address the problems and the viability of each business segment as follows:
o For viable firms facing temporary liquidity shortage, liquidity support via new loans and proactive debt restructuring would be appropriate.
o For already-burdened-by-high-debt firms facing liquidity shortage, funding support for business restructuring, through credit or debt-to-equity swap mechanism, and proactive debt restructuring should be prioritised. In this light, the Office of the Securities and Exchange Commission (SEC) was in consultation with government and private agencies to evaluate the possibility of establishing funds to help firms affected by the outbreak.
o For firms facing competitiveness issues for some time, attention should be given to structural measures aiming to reduce excess capacity and support adaptation of business models to meet changing consumer demand.
With regard to households, measures aiming to reduce debt-servicing burden, notably debt payment holidays and instalment reductions, have reached a large number of retail borrowers so far. However, some borrowers still need additional help through debt restructuring.
The BOT has urged financial institutions to help borrowers in a manner tailored to borrowers’ problems and needs by letting them “opt-in” for support programmes, instead of applying broad measures. In addition, debt restructuring for retail borrowers was pushed to be more comprehensive and suitable to borrowers’ debt serviceability in the long term. Alongside these debt measures, measures to support income and reduce expenses should also be implemented. These include government’s measures on employment support and expenditure reduction for low-income households, as well as measures by the Office of Insurance Commission (OIC) to help policyholders by reducing premiums and extending premium payments.
• Safeguarding stability of the financial sector and containing spillover from financial markets. Measures undertaken to stabilise domestic financial markets, namely the Corporate Bond Stabilisation Fund (BSF) and the Mutual Fund Liquidity Facility (MFLF), had been instrumental in restoring investor confidence and market functioning. However, the credit spreads of corporate bonds rated BBB or below and unrated bonds, which had picked up sharply in the first half of 2020, were yet to recede to normal levels, reflecting investors’ concerns on these segments. Also, there continued to be rollover risks in high-yield bonds (non-investment grade and unrated), which were issued mainly by real estate developers. Although these risks are still present, assessments indicate that they will not lead to systemic risks. While overall the situation has improved, the economic outlook remains highly uncertain and capital markets would likely remain volatile, so both the BSF and the MFLF still need to be maintained to prepare for future shocks that could affect investor sentiment.
Moreover, there remains a need to prepare additional measures for risks from market segments not covered by the BSF, such as supporting the establishment of high-yield bond funds, which could provide additional liquidity and help stabilise the corporate bond market. With regard to the savings cooperatives system, the search-for-yield behaviour continues to be present, as reflected by the growing proportion of excess liquidity invested in equity and corporate debt securities. Thus, there continues to be a need to strengthen and effectively implement related regulations, such as investment limits on financial securities.
Furthermore, financial regulators have implemented several measures to ensure the financial sector possess adequate buffers to withstand potential risks and support economic recovery going forward. For example:
o The BOT set the limit on banks’ dividend payments, prohibited the buyback of stocks and debentures that could be counted as regulatory capital before maturity, and relaxed the eligibility criteria for regulatory capital to be on par with the international standard. The objective was to ensure that financial institutions have enough capital cushion to withstand unanticipated events and play a key role in supporting economic recovery.
o The SEC was in the process of revising regulations to provide asset management companies with more liquidity management tools, as approved by the Capital Market Supervisory Board.
o The OIC was in the process of issuing guidelines on subordinated debt issuances by life and non-life insurance companies to be counted toward regulatory capital, aiming to strengthen capital and liquidity positions of insurance companies. Also, the OIC issued the guidelines for insurance companies on IT security and cyber risks, which emerged as new risks for the insurance industry.
Given economic and financial uncertainties going forward, the BOT, the SEC, and the OIC will continue to collaborate closely in assessing risks as well as the adequacy and effectiveness of measures undertaken. The regulators will also stand ready to impose additional measures to contain financial stability risks and support economic recovery. Further cooperation with government agencies would be essential going forward, while financial regulations should be coordinated and reviewed to ensure that they continue to be appropriate in the changing economic and financial context.
The Stock Exchange of Thailand (SET) Index fell by 6.10 points, or 0.41 per cent, to 1,470.03 in the morning session on Tuesday.
An analyst at Krungsri Securities expected the day’s index to fall to between 1,465 and 1,470 due to lack of factors to stimulate investment.
“Besides, the SET would be under pressure from the slowdown in foreign funds flows, uncertainty over the Bank of Thailand’s measures to curb the baht’s appreciation and the index’s tight valuation,” he said
He recommended that investors buy:
▪︎ PTTEP, PTTGC, TOP, IVL and SPRC that benefit from rising oil price.
▪︎ MINT, CENTEL and AOT that benefit from positive news of Covid-19 vaccine.
▪︎ BAM, DELTA and COM7, which are expected to be listed in the SET50 Index.
▪︎ JMART, which is expected to be listed in the SET100 Index.
The SET Index closed at 1,476.13 on Monday, down 6.54 points or 0.44 per cent. Total transactions amounted to Bt107.3 billion with an index high of 1,495.18 and a low of 1,471.56.
Egat governor Boonyanit Wongrukmit 
IEAT governor Somchint Pilouk 
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