#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

ThaiBev founder Charoen takes Bt100bn hit from virus crisis

EconAug 19. 2020

By The Nation

The market capitalisation of listed companies controlled by property magnate and ThaiBev founder Charoen Sirivadhanabhakdi has slumped over Bt100 billion this year, while their first-half profit plummeted by 47 per cent to Bt2.9 billion, experts said.

Charoen is currently major shareholder in 10 listed companies, either personally or via affiliates, after his 11th firm, Goldenland (GOLD), filed for delisting from the Stock Exchange of Thailand (SET) and stopped trading on August 10.

The combined market capitalisation of his 10 companies stands at around Bt356 billion, most of which comes from two companies – Berli Jucker (BJC) at Bt150 billion and Asset World Corporation (AWC) at Bt125 billion.

However, AWC shares have fallen 30 per cent from Bt6 to Bt3.92, helping to wipe Bt105 billion or 22.8 per cent off the combined market cap of both companies this year.

Charoen controls businesses in a variety of sectors, including real estate with AWC and Univentures (UC), industrial estates with Frasers Property (FPT), food with Oishi Group (OISHI) and Siamfood (SFP), insurance with Indara Insurance (INSURE) and Thai Group Holdings (SEG), and media with Amarin Printing and Publishing (AMARIN).

Combined profit of his 10 companies in the first six months this year was Bt2.9 billion, down 47.8 per cent year on year from Bt5.6 billion. Four companies recorded net losses, namely AWC (Bt768 million), SFP (Bt122 million), AMARIN (Bt85 million) and INSURE (Bt17 million).

An analyst at investment bank UOB Kay Hian said the bank has cut its 2020-2022 profit forecast for AWC profit after lower-than-expected results, adding that tourism is likely to recover slowly. AWC has invested heavily in hotels.

“AWC is not very attractive during this time although the company will grow in the long term because its share value is high,” the analyst predicted.

An analyst at Bualuang Securities said AWC would gain benefit from the tourism recovery in the long term because it is the largest mid-range and luxury hotel business operator in Thailand.

“Based on the Discounted Cash Flows [DCF] method, we advise buying AWC shares with a Bt5 target price at the end of 2021, according to our new profit forecast, down from Bt5.80 per share,” the analyst said.

Meanwhile BJC’s net profit dropped by 47.7 per cent from Bt3.03 billion to Bt1.58 billion due to a decline in revenue. An analyst at Trinity Securities explained that BJC’s packaging business revenue fell by 11.1 per cent after Covid-19 prevention measures such the alcohol ban took a toll.

“Pharmaceutical and technical business revenue fell by 5.9 per cent as consumers prioritised their health, causing less sickness and demand for certain drugs to drop,” the analyst said.

“Retail business revenue fell by 11.4 per cent, while same-store sales dropped 17 per cent due to unnecessary product space restriction, limited opening times, and rent discount exemptions.”

“Consumables was the only business that saw increased revenue, of 4.7 per cent, from logistics and overseas businesses in Vietnam, cleaning products, alcohols, and hand sanitisers demand and the decline in domestic consumption.”

The analyst said the securities company has cut BJC’s profit forecast this year by 39 per cent to Bt4.78 billion, down 34.3 per cent year on year, expecting its profit in the second half to improve.

FPT’s net profit rose around 250 per cent year on year from Bt763 million extra profit after it acquired GOLD shares at the beginning of this year, as well as profit from the sale of company’s assets to FTREIT.

An analyst at DBS Vickers expected FPT’s profit in the fourth quarter this year and the first half of 2021 to increase from the sale of company’s assets to FTREIT, while the demand for factories and warehouses for rent is still high.

“However, the company’s short-term income will be affected by the rental discount to relieve the Covid-19 burden on tenants,” the analyst said.

Based on the DCF method, the analyst advised buying FPT shares at a new base price of Bt13.80.

“We increased the company’s profit forecast this year by 18 per cent, but reduced its profit forecast next year by 19 per cent in response to more caution on GOLD’s sales and transfers of residential and hotel businesses and assets,” he said.

“We expect the company’s profit from asset sales next year to drop to Bt1.2 billion from Bt2 billion this year.”

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

Farmers of casava, rubber, corn get Bt14bn price guarantee schemes

EconAug 18. 2020

By The Nation

The Cabinet today approved price guarantee schemes for casava, rubber and corn-feed farmers with a total budget of Bt14.106 billion.

Of the total, Bt2.4 billion will be added to the Bt24-billion price guarantee scheme for rubber farmers approved last October. The government’s Bank for Agriculture and Agricultural Cooperatives will finance the scheme in advance.

Another Bt1.913 billion of the total budget will fund a price guarantee for maize planters this year and next year.

The remaining Bt9.78 billion will pay for price guarantees for casava planters, covering a total 530,000 households nationwide.

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

SET rallies despite lack of positive sentiment

EconAug 18. 2020

By The Nation

The Stock Exchange of Thailand (SET) Index closed at 1,330.11 today (August 18), up 9.20 points or 0.70 per cent. Total transactions tallied at Bt50.855 billion with an index high of 1,330.40 and a low of 1,321.07.

During the morning session, a stock analyst at Krungsri Securities said he expected the index to fluctuate between 1,315 and 1,330 owing to the lack of positive sentiment to boost investment after listed companies had announced their second-quarter performance.

“Besides, we expect investors to delay trading to follow the US Federal Reserve’s meeting on Thursday to monitor interest-rate signals in the future, resulting in volatility in the index,” he said.

The top 10 stocks with the highest trade value today were CPALL, STGT, KBANK, CRC, AOT, PTT, ADVANC, MINT, GULF and NER.

As of 4.30pm, the price of crude oil dropped by US$0.10 or 0.23 per cent to $42.79 per barrel, while gold rose by $18.30 or 0.92 per cent, to $2,017 per ounce.

Other Asian indices were mixed:

Japan’s Nikkei Index closed at 23,051.08, down 45.67 points or 0.20 per cent.

China’s Shanghai SE Composite Index closed at 3,451.09, up 12.29 points or 0.36 per cent, while Shenzhen SE Component Index closed at 13,768.17, up 25.94 points or 0.19 per cent.

Hong Kong’s Hang Seng Index closed at 25,367.38, up 20.04 points or 0.079 per cent.

South Korea’s KOSPI Index closed at 2,348.24, down 59.25 points or 2.46 per cent.

Taiwan’s TAIEX Index closed at 12,872.14, down 83.97 points or 0.65 per cent.

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

Cambodia offers great opportunities for Thai bubble tea, coffee business

EconAug 18. 2020

By THE NATION

The Department of International Trade Promotion (DITP) is advising Thai businesses to invest in coffee and milk tea products in Cambodia, as it already has more than 800 coffeeshops nationwide and is showing good potential for more.

“Coffee and bubble tea are a big hit in Cambodia with more than 300 shops in Phnom Penh and 500 in other provinces,” DITP director general Somdet Susomboon said on Tuesday (August 18). “Thai brands like Amazon, Black Canyon, True Coffee, Inthanin, Arabitia, Doi Chang, Doi Lor and Chao Doi have become very popular, with Thai coffeeshops holding more than 45 per cent market share in Cambodia. Amazon is the biggest player after having opened 140 branches nationwide.”

Somdet said foreign companies are also eyeing the Cambodian market, with Starbucks opening its 20th branch in the country.

“Local brands like Brown Coffee are also strong players, making Cambodia a promising market with the potential of high competition in the future,” he added.

Jirawut Suwanart, director of DITP Cambodian Office, said entrepreneurs wanting to set up coffeeshops or bubble milk-tea businesses in Cambodia can contact the office for details on documentation and regulations.

“Thai businesses can enter the market in three ways – opening and managing the shop with 100-per cent-ownership, which is suitable for well-established brands; co-investing with a local investor, which is suitable for expanding into rural areas as the insight of locals will help secure the market; and the third is to sell franchise licence to locals. The last option is the cheapest with low financial risks, though brand owners must ensure that franchisees maintain the product’s quality or they risk injuring the brand image.”

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

Energy Ministry plans a future with electric vehicles

EconAug 18. 2020

By The Nation

The Energy Ministry plans to have up to 1.2 million electric vehicles plying the roads by 2030 and is laying the foundation for infrastructure and battery development.

Wattanapong Kurovat, chief of the Energy Policy and Planning Office, said the ministry was sticking by its goal of 1.2 million EV cars by 2030 as other facilities such as charging stations, electric system and EV car technology were being developed including plans on reducing energy consumption.

He said the office was also studying the option of EV users selling extra energy from their batteries to the national power grid, which will help strengthen the country’s electricity security.

Somphot Ahunai, president of the energy firm, Energy Absolute, said promoting the use of electric vehicles should be done systematically, starting with creating a demand by reducing the price barrier and installing some 2,000 charging stations 50 kilometres apart nationwide.

He said the government can pilot EVs in public transport, taxis and government cars first. When demand rises, it will result in automakers, battery manufacturers and makers of EV parts basing themselves in Thailand and ultimately turning it into an EV hub in Asean.

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

Standard Chartered Bank lowers GDP forecast to 8% contraction

EconAug 18. 2020Tim Leelahaphan, economist, Standard Chartered Bank (Thai)

By The Nation

Thailand’s gross domestic product will contract by 8 per cent compared to 2019, more than the 5 per cent contraction forecast earlier, reflecting the worsening outlook due to political concerns and a lack of concrete stimulus measures, Standard Chartered Bank said on Tuesday.

“While we believe the second quarter saw the worst of the Covid-19 impact on Thailand’s economy, we now expect a slower recovery ahead. Domestic activity – currently the main economic driver – remains weak, while external sources of growth are unreliable,” said Tim Leelahaphan, economist, Standard Chartered Bank (Thai).

The bank pushed back its call for the next policy rate cut to the fourth quarter from the third quarter given limited monetary policy space. The bank has raised its 2021 growth forecast to 2 per cent from 1.8 per cent to reflect this year’s lower base.

“Looking ahead, we do not see a clear post-Covid development strategy for Thailand. The current crisis has exposed the economy’s heavy dependence on external drivers, particularly tourist arrivals from China. This issue will need to be structurally resolved over the medium term to ensure sustainable growth,” Tim said.

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

Better returns in foreign markets lure Thai investors

EconAug 18. 2020Pichet Sithi-Amnuai, Bualuang Securities president

By The Nation

Due to low interest rates worldwide and a drop in the Thai stock market’s return on investment, more and more individual investors are opening accounts with Bualuang Securities (BLS) to invest in foreign shares.

Pichet Sithi-Amnuai, BLS president, said Thai investors were interested in foreign stock markets because the global interest rate remained low, and had even contracted in some countries.

“Meanwhile, the Thai stock market’s return on investment contracted 19 per cent compared to foreign stock markets, which generated good returns, especially Nasdaq and S&P 500, which rose 40 per cent and 18 per cent respectively,” he said.

Pichet added that BLS has designed special tools to make investing in foreign markets easy, especially the “Global Signals” tool, which indicates bear and bull shares.

Rhatsarun Tanapaisankit, chief of BLS’ Global Investing department, said foreign investments in the second half of this year is an interesting option, because apart from cutting down on geographic risks, it offers people an opportunity to invest in new industries that are not available in the Thai stock market, such as shares of firms coming up with innovations.

“Many foreign markets have risen sharply, so investors should buy shares when they are cheap,” he said.

He advised that investors spend 70 per cent of their funds in the US stock market and focus on three groups, namely technology stocks such as Microsoft (MSFT) and Apple (AAPL), growth stocks such as healthcare companies, and value stocks whose price dropped due to the Covid-19 crisis and will rise once the crisis is resolved.

“We also advise investors to spend 20 per cent in the Hong Kong stock market because many of its shares grow alongside the Chinese economy,” he said. “In addition, investors should spend the remaining 10 per cent on the Vietnam stock market and focus on investment via depositary receipt ‘E1VFVN3001’ which is an exchange traded fund of the VN30 Index.

“If investors are interested in individual stocks, we recommend Vinamilk [VNM], which is growing in line with domestic consumption in Vietnam,” he added.

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

Gold price hits single-day highest in four months

EconAug 18. 2020

By The Nation

The price of gold rose by Bt600 per baht weight in morning trade on Tuesday (August 18), the Gold Traders Association reported.

As of 9.28am, the buying price of a gold bar was Bt29,250 per baht weight and selling price Bt29,350, while gold ornaments cost Bt28,728.20 and Bt29,850, respectively.

At close on Monday, the buying price of a gold bar was Bt28,650 per baht weight and selling price Bt28,750 while gold ornaments cost Bt28,136.96 and Bt29,250, respectively.

The Chinese Gold and Silver Exchange Society said that Hong Kong gold price rose by HK$270, opened at $18,340 (Bt73,784.48) per tael this morning.

Meanwhile, the Comex (Commodity Exchange) gold price to be delivered in December rose by US$48.9, or 2.51 per cent, to $1,998.7 (Bt62,320.07) per ounce at Monday’s close.

Gold price hit the single-day highest in four months from the decline in dollar and US bond yields. Besides, investors were buying gold as a safe-haven asset after the number of Covid-19 cases started to rise again.

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

SET rises despite lack of positive sentiment

EconAug 18. 2020

By The Nation

The Stock Exchange of Thailand (SET) Index rose by 4.17 points, or 0.32 per cent, to 1,325.08 in morning session on Tuesday (August 18).

A stock analyst at Krungsri Securities expected the index to fluctuate between 1,315 and 1,330 due to lack of positive sentiment to boost investment after listed companies had announced their second-quarter performance.

“Besides, we expect investors to delay trading to follow the US Federal Reserve’s meeting on Thursday to monitor interest-rate signals in the future, resulting in volatility in the index,” he said.

The SET Index closed at 1,320.91 on Monday, down 6.14 points or 0.46 per cent. Total transactions amounted to Bt47.812 billion with an index high of 1,331.80 and a low of 1,315.89.

He recommended that investors buy:

▪︎Stocks that benefit from rising crude oil price, such as PTTEP, PTTGC, TOP and IVL.

▪︎Stocks that benefit from lockdown easing and progress in Covid-19 vaccine development, such as CRC, CPN HMPRO, GLOBAL, COM7, DOHOME, AOT, MINT, CENTEL and ERW

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

Oil rises with stronger equities on signals of economic recovery

EconAug 18. 2020An employee walks down stairs on the Armada gas condensate platform operated by BG Group in the North Sea off the coast of Aberdeen, Scotland, on Dec. 10, 2015. MUST CREDIT: Bloomberg photo by Simon Dawson.

By Syndication Washington Post, Bloomberg · Andres Guerra Luz · BUSINESS, US-GLOBAL-MARKETS 
Oil climbed alongside U.S. equities as optimism that an economic recovery may be on the horizon lifted hopes that improving fuel demand may follow.

Equities in the U.S., Europe and Asia strengthened on Monday, with the S&P 500 approaching an all-time high, bolstered by fresh stimulus out of China’s central bank. A gauge of builder sentiment in the U.S. jumped to its highest since 1998, signaling a bright spot in an economy reeling from the coronavirus pandemic. Helping buoy sentiment, there are signs that some parts of the U.S. hardest hit by the outbreak may be improving, with Arizona reporting the smallest increase in new infections in two months and no deaths.

Equities are rising, lifting all asset classes and reflecting the outlook that “we’re getting closer to some kind of economic recovery,” said Phil Streible, chief market strategist at Blue Line Futures in Chicago. “We’ve seen a big recovery in the equity markets, we’re seeing the reflation trade take off, why not oil participate in that.”

Meanwhile, a panel of technical experts is reviewing the deal between the Organization of Petroleum Exporting Countries and its allies on Monday, followed by a ministerial meeting on Wednesday. The group is starting to return some crude supply to the market this month following deep reductions.

U.S. benchmark crude futures are up over 5% so far this month as inventories shrink and the virus crimps U.S. shale operations. In fact, oil driller Chaparral Energy Inc. filed for bankruptcy protection, adding to a string of energy companies that have done so amid the pandemic.

“While prices have sharply recovered, we still see substantial challenges ahead for the shale patch,” such as limited financing and increasing cost of capital for shale plays, TD Securities commodity strategists including Bart Melek said in a note. “This should bode well for prices as demand growth continues to normalize into 2021.”

Oil’s rally remains capped by the surge in coronavirus cases around the world that have depressed demand. The sale of diesel in India — the country’s most-used fuel and a proxy for its economic health — slumped 20% in the first half of August from the same period in July, according to people familiar with preliminary data from the country’s three biggest fuel retails.

With the pandemic crippling consumption for gasoline and diesel during the normally active summer driving season, refiners on the U.S. Gulf Coast are cutting run rates or considering whether to restart certain process units after maintenance in response. Calcasieu Refining has idled its entire Lake Charles refinery in southwest Louisiana and may keep it shut for the rest of the year unless product demand improves. Exxon Mobil Corp. has also idled a key process unit at its Baton Rouge, Louisiana, refinery due to weak demand.

OPEC+ is planning to return about 1.5 million barrels a day to the market this month after trimming roughly 10% of global supply following a crash in demand due to the pandemic. Iraq has also made its strongest commitment yet to implement deep output cuts, including deeper cuts in the coming months to compensate for missing previous targets.

OPEC+ sees overall implementation of its pledged production cuts in July of 95%, before the meeting of the group’s Joint Technical Committee to formally assess compliance, said delegates.

“Unlike at the July JMMC when the market was waiting for guidance on an extension of the deepest of supply cuts to August, at this meeting there is no supply policy determination to make,” said Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas. “We expect the committee to reinforce the same message of compliance and group discipline as it did at the July meeting.”