SET launches ‘well-being’ business index

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http://www.nationmultimedia.com/detail/Economy/30367354

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SET launches ‘well-being’ business index

Economy April 09, 2019 01:00

By The Nation

Thailand is considered a comfortable, healthy and happy land, due partly to the country’s rich natural resources.

Those riches play a role in bettering the society, as well as functioning as an important mechanism to drive the country’s economy. Current SET-listed companies related to health and lifestyle have consistently shown upbeat performance, along with high growth potential.

These listed businesses are large and diverse, including those in the agriculture and food sector with their production lines and supply chains from farmers who sell their products to wholesalers and retailers and on to consumers world-wide, upstream manufacturers, the transportation and logistics sector, as well as medical services that include experts and facilities to accommodate global visitors.

The transportation and logistics sector additionally helps support tourism business growth, as does the medical services sector which has made Thailand a medical hub and destination while enhancing the tourism industry as a whole.

Recent SET reports have explored the breadth and depth of these various related businesses.

At end-2018 129 out of 605 SET-listed companies were engaged in “well-being” businesses with a combined market capitalisation amounting to Bt5 trillion and representing 30 per cent of the total market cap. Due to the constant growth of listed firms, many have become among the world’s leading firms in their sector.

Apart from adding economic value, these businesses have been instrumental in creating skilled workers. Almost all of the associated business operators were engaged in the service and manufacturing sectors, together employing 680,000 skilled workers and accounting for 48 per cent of SET-listed companies’ total employees at end-2017.

Noting that it is committed to taking part in building a good society, SET recently initiated the SET Well-Being Index (SETWB Index), starting from April 1, 2019, as another investment alternative.

The business of “well-being” is enjoying substantial growth in tandem with the improved quality of life for many in Thailand and globally, supported by technologies to reshape the lifestyles of people across the world in a promising direction in years to come, according to the reports.

Market View: April 9-12

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http://www.nationmultimedia.com/detail/Economy/30367357

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Market View: April 9-12

Economy April 09, 2019 01:00

By Special to The Nation

Pick low-risk stocks as local, world factors continue to dull investment

Therdsak Thaveeteeratham

Executive Vice President / Research

Asia Plus Securities

The SET Index is expected to fluctuate in a range of 1,630-1,660 points.

The investment mechanism currently consists of several elements for capital to move into the Thai bourse, ranging from the end of the interest rate’s upward trend and a possible rate cut in some countries, a higher Thai 10-year bond yield than the US 10-year bond yield, a market earnings gap which indicates a 4.3 per cent higher return in the stock market than the bond market, and a historical low foreign holding of Thai stocks at 22.6 per cent.

Yet capital has not flown back into the stock market likely due to concerns over Thailand’s political situation after the election and worries over the next government’s stability.

This week, key external factors are centred on optimism for the US-China trade war and concerns over Brexit. Britain is due to leave the European Union on April 12.

Risks may heighten in the event of a no-deal Brexit.

Also this week, the SET Index will likely fluctuate in the range of 1,630-1,660 points. We prefer stocks with low downside risks and a sufficiently high dividend yield such as PTTGC which has been pressured by an over Bt12-billion short sell (from early 2019 to now). PTTGC’s dividend yield is close to 6 per cent with a 15 per cent upside from the fair value. We also like EASTW with its stable price move, expected higher water sales in the summer, long-term gain from the EEC and a dividend yield of higher than 4 per cent, as well as DCC with sales recovery of tiles, distribution channels for rental income and a dividend yield of 5 per cent.

Passakorn Linmaneechote

Deputy Managing Director – Research

Kasikorn Securities

The SET Index will likely swing up.

A negotiation report on the Washington trade dispute is expected to drive the stock market this week. If there’s progress without details, we could see a sell on fact. But if the negotiation progress is filed with details, the stock market is expected to continue its rise. Domestically, we expect the stock market to weigh on the political issue after announcing the formal election results on May 9.

The SET Index this week is expected to swing up from positive trade negotiations with likely thin turnover for the long holidays. Meanwhile, we see external risks from strong US economic figures which could pressure the FOMC to raise the rate and, as a result, lead to a possible capital flee from emerging stock markets including the Thai bourse.

Saravut Tachochavalit

Senior Vice President, Research Department

RHB Securities (Thailand)

This week, new factors that could affect the global and Thai stock markets include the ECB meeting, Brexit, the March OPEC production report, the Fed’s sudden policy shift for no rate rise this year and the cease of QT this September, China’s inflation and exports, and the IMF report that is expected to announce a downward revision of its estimates for economic growth particularly in the eurozone.

We expect the SET Index to swing in a range of 1,630-1,667 points, given the period of 1Q19 earnings results announcement for commercial banks. Commercial banks in our coverage are forecast to see a 12- per-cent drop YoY but a 13-per-cent rise QoQ in 1Q19 net profit. We pick KBANK with a target price of Bt222 and BBL with a target price of Bt241.

Household LPG subsidies to continue to July

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http://www.nationmultimedia.com/detail/Economy/30367359

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Household LPG subsidies to continue to July

Economy April 09, 2019 01:00

By The Nation

The Energy Ministry is confident that support from the oil fund will maintain the price of liquefied petroleum gas (LPG) at Bt363 per 15 kilograms until July, its minister, Siri Jirapongpha, said recently.

The fund will continue to subsidise the costs of energy for household customers following the Energy Policy Committee approval.

The committee approved losses to the oil fund of up to Bt7 billion to support the household costs for LPG. So far, the fund is showing a net loss of I Bt6.13 billion, leaving room for continuing price subsidies through to July, said Siri.

Department eyes Chiang Mai, U-Tapao airports for OTOP

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http://www.nationmultimedia.com/detail/Economy/30367360

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Department eyes Chiang Mai, U-Tapao airports for OTOP

Economy April 09, 2019 01:00

By The Nation

Sales of OTOP products sold at international and local airports were worth Bt127 million in 2018, according to Vuttikrai Leewiraphan, the director general of the Business Development Department of the Commerce Ministry.

Sales reached Bt84 million at Suvarnabhumi International Airport, followed by Bt34.6 million at Phuket International Airport, with the remainder coming from Don Mueang Airport.

The ministry opened OTOP shops at the airports on April 10, 2018.

“We are already negotiating with Airports of Thailand Plc to open space for OTOP products at Chiang Mai International Airport, and are also asking the Royal Thai Navy to open space at U-Tapao International Airport for OTOP products too,” Vuttikrai said.

In addition to increasing airport sales, the department will open a new channel to promote OTOP products both offline and online in an effort to boost sales domestically and overseas, he said.

US accelerates project-financing in Asean

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http://www.nationmultimedia.com/detail/Economy/30367305

  •  Eric Jones, chief of staff at the Overseas Private Investment Corporation.
  • Joseph Felter, deputy assistant secretary of defence for South and Southeast Asia

US accelerates project-financing in Asean

Economy April 08, 2019 01:00

By  PHUWIT LIMVIPHUWAT
THE NATION

2,214 Viewed

Amid China’s growing influence in the Asean region through the Belt and Road Initiative, the United States is stepping up its efforts to finance development projects in the bloc as part of its Indo Pacific Strategy.

Washington is keen on financing infrastructure, energy, digital and telecommunication developments in the bloc through the official Overseas Private Investment Corporation (OPIC).

The Indo Pacific Strategy marks the US government’s bid to enhance cooperation with countries from the Indian Ocean to the Pacific Ocean in areas such as economic development and security upgrade.

“The Asean region is central to our Indo Pacific strategy as it lies in the centre of the Indo Pacific region,” said Eric Jones, chief of staff at OPIC on Friday during a press briefing at the US Embassy in Bangkok.

The notion of Asean centrality is crucial to our Indo Pacific Strategy, which is why the US has kept up its efforts to strengthen its ties with Thailand, a key leader in this region, added Joseph Felter, deputy assistant secretary of defence for South and Southeast Asia.

OPIC offers debt financing, political risk insurance and private equity funds to US firms looking to invest abroad. In 2018, the corporation allocated US$4 billion (Bt128 billion) for project financing in the Asean region, from its $29-billion budget for exposure capital, Jones said.

“Our mission is to mobilise private capital towards development projects, particularly in developing countries,” Jones said. “Our goal is to invest to maintain the sovereignty of other countries through financing projects that are long-lasting, environmentally sustainable and have high labour standards.”

Among Asean projects, recently funded by the OPIC, is a $250-million telecom venture in Myanmar. It has also invested $200 million in a US firm which is currently looking for business opportunities in Thailand, according to Jones.

In 2019, OPIC’s budget for exposure capital will increase from $29 billion to $60 billion, further widening opportunities for US investment in Asean, Jones said. However, budget allocation to the Asean region this year was not disclosed at the briefing.

Despite a level of uncertainty arising from the split results from the Thai election, the US government and its private sector are looking forward to work with the next Thai administration on US investments in the Kingdom, Jones stated.

The US private sector remains interested in investing in the Indo Pacific region. In 2018, foreign direct investment in the region from US firms totalled $140 trillion, he said.

The US welcomes infrastructure developments, including China’s Belt and Road Initiative, Felter stated.

However, there is cause for concern over China’s flagship international infrastructure development project, which is said to have led to debt traps in developing countries, he said.

The US hopes that in going forward, the terms of future infrastructure investment under the Chinese initiative would be fairer to the host country, he said.

STIMULUS ON THE CARDS AMID UNCERTAINTIES

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http://www.nationmultimedia.com/detail/Economy/30367314

STIMULUS ON THE CARDS  AMID UNCERTAINTIES

Economy April 08, 2019 01:00

By The Nation

The Finance Ministry plans to launch stimulus measures to boost the country’s economy growth close to 4 per cent this year amid uncertainty over the formation of the next government, Finance Minister Apisak Tantivorawong said.

He said the measures will focus on developing the country’s infrastructure and boost domestic consumption during the rest of the year, after the Bank of Thailand revised down the country’s economy growth from 4 per cent to 3.8 per cent last week.

“We expect the new measures to boost domestic consumption and investments in the domestic market amid a slowdown in Thai exports due to the ongoing China-US trade war,” he said.

SET CLARIFIES CHANGES TO RULES ON ‘SP’ SIGN

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http://www.nationmultimedia.com/detail/Economy/30367317

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SET CLARIFIES CHANGES  TO RULES ON ‘SP’ SIGN

Economy April 08, 2019 01:00

By The Nation

Following The Stock Exchange of Thailand (SET)’s announcement to amend regulations on the temporary trading suspension “SP” sign, SET reaffirms that the objective is to provide opportunity or option to shareholders of the companies which the securities have been posted SP sign for three months.

This is resulting from failure to disclose material information, to submit financial statements, or the auditor issues adverse opinion on the financial statements.

The shareholders are able to trade for one month before such securities will be continually suspended if the cause cannot be solved.

In order to limit risk and alert investors to be more prudent in such trading period, those securities must be purchased through cash balance account which means the customers have to pay the full amount in cash prior to purchasing.

SET confirms new rules allowing temporary trading will be applied to all listed securities in line with the criteria.

According to this regulation, some securities will be allowed for temporary trading from July 1, 2019 onwards and SET will announce the list of securities in advance.

Asean mulls paths to integration

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http://www.nationmultimedia.com/detail/Economy/30367326

Asean Finance Ministers and Central Bank Governors
Asean Finance Ministers and Central Bank Governors

Asean mulls paths to integration

Breaking News April 08, 2019 01:00

By Wichit Chaitrong
The Nation

3,996 Viewed

Smoother customs clearance, payment systems emerge from Chiang Rai meet

CUSTOMS cooperation and robust financial infrastructure remain the top challenges for Asean in its bid to deepen economic integration and redistribute economic wellbeing.

Asean finance ministers and central bank governors concluded a two-day meeting in Chiang Rai on Friday.

One of the major goals for the 10-nation bloc is a faster, efficient and paperless customs-transit system to facilitate more trade and investment among the member-countries. Thailand, sharing borders with Cambodia, Laos, Malaysia and Myanmar, has much to gain.

The Asean Single Window (ASW) is an ambitious project designed to reduce logistics costs, make clearing and transiting border customs checkpoints easier and increase productivity in both the public and private sectors.

The window is supposed to facilitate by electronic means more-convenient customs procedures, goods in transit, tax claims and licensing approval.

“Five or six countries have developed their own national single window and are ready to link with other Asean members,” Thai Finance Minister Apisak Tantivorawong told reporters at the close of the meeting.

Cambodia and Myanmar will be ready to link in a few months, while Laos may be delayed in developing its single window, but Thailand is providing assistance, he said.

“We expect all countries to participate in the ASW by the end of this year,” said Apisak.

Thailand and its neighbours also discussed common inspections of goods at border points to reduce time. Goods are typically inspected twice – by both the exporting and importing country. Combining the inspections would lower logistics costs for the private sector.

Finance Minister Apisak Tantivorawong

Currently, only Thailand and Laos have implemented joint inspections at the border, Apisak said.

Thailand is also considering issuing bills of lading for goods that foreign ship across the Thai border bound for ports in the Eastern Seaboard. These currently need to go through customs procedures at both the border and the seaport, resulting in wasted time and high logistics costs.

In Asean payment connectivity, the bloc is trying to leverage the digital revolution for deeper economic integration.

Thailand is trying to persuade other countries to adopt the QR-code payment system by which Thailand ties bank accounts to phone numbers and allows people to use a mobile application for financial transactions.

Cambodia, Indonesia and Laos are interested in the concept, said Apisak.

Executives of Chinese e-commerce giant Alibaba Group want to use Thailand’s QR code and will discuss it with the Bank of Thailand soon, he said.

The Thai QR-code system causes no loss of business for other partners because remittances are sent back to their own banks, he said.

Singapore has its own QR-code standard and with Thailand has developed a digital infrastructure for e-payment that accommodates the code. In Thailand it’s called PromptPay and in Singapore PayNow.

An estimated 41 million Thais, from a population topping 60 million, have registered with PromptPay, whose user-base is far larger than that of PayNow, said Apisak.

Holders of state welfare cards, estimated to number 14.5 million, contribute to the huge number of PromptPay users.

“This has allowed low-income people to access financial services – I think nearly 100 per cent of the population,” said Apisak, who disputes recent financial statistics that suggested a rate of 80 per cent.

Credit should be given to the Bank of Thailand, which developed PromptPay and QR-code payments, he added.

Central bank Governor Veerathai Santiprabhob, however, conceded that PromptPay will need an upgrade before it can be linked with PayNow. “The linkage could take place in the second quarter of next year,” he said.

The challenge in financial integration is that each country is at a different stage of development and the scope for connectivity depends on their readiness, Veerathai said.

Finance Minister Apisak Tantivorawong and Central bank Governor Veerathai Santiprabhob

He and his counterparts in Indonesia, the Philippines and Malaysia agreed to use or expand the scope of local currency use for debt settlements in the region.

Veerathai invited banks and non-banks to demonstrate their digital financial services at the Asean Ministers’ Meeting last week, seeking to promote Asean payment connectivity and financial integration.

The Asian Development Bank has forecast the region’s economy to grow 4.9 per cent this year, slowing from 5.1 per cent last year. It also predicted 3.9 per cent growth for Thailand’s gross domestic product this year.

Box: 

How the money is meant to move

 Existing Financial Services under Asean Payment Connectivity

– Cambodia and Thailand: Interoperable |QR payment by Siam Commercial Bank.

– Indonesia and Thailand /Intra-Asean: Letter of credit service on Enterprise Blockchain by Bangkok Bank.

– Laos and Thailand: Cross-border QR |payment by Thanachart Bank and |Laos-based BCEL.

Real-time international fund transfer for business using blockchain technology by Krungsri Bank.

– Malaysia, Philippines and Thailand: SpeedSend, a cross-border money transfer by CIMB Group.

– Myanmar and Thailand: Remittance |powered by Everex provided by Krungthai Bank and Shwe Bank.

– Singapore and Thailand: BeWallet |interoperable QR payment by Bangkok Bank and UOB.

Remittance transfer via API by DBS and Kasikornbank.

Cashless experience through cross-border |QR payment by AIS mPay, Singtel Group and Kasikornbank.

Source : Bank of Thailand

Political uncertainty hindering foreign investment: Apisak

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http://www.nationmultimedia.com/detail/Economy/30367258

Finance Minister Apisak Tantivorawong
Finance Minister Apisak Tantivorawong

Political uncertainty hindering foreign investment: Apisak

Breaking News April 06, 2019 12:41

By The Nation

4,094 Viewed

In response to a drop of consumer confidence, Finance Minister Apisak Tantivorawong, said he believed actual consumption would remain positive for the first and second quarters of this year.

“Just wait until the National Economic Social Development Council releases actual figures,” he said at the close of Asean Finance Ministers’ and Central Bank Governors’ Meeting in Chiang Rai on Friday.

The Consumer Confidence Index dropped to 80.6 in March, the first drop in the past three months, as consumers were nervous about the adverse impact of the political situation, and a slowdown of local and global economies, according to the survey conducted by the University of Thai Chamber of Commerce which released the survey on April 4.

Apisak, however, said that he was more concerned about a delay of new private investment. “We have learned from many investors, in particular foreign investors, who say that they will wait until the political uncertainty becomes clear,” said Apisak.

He said it did not surprise him because the government had been aware of the impact of political uncertainty so the government accelerated public investment in infrastructure projects in order to shore up economy during political transition.

“We did not want the economy to sharply slow down because if so, it needs a lot of resources to pull the economy back on track, shoring up the economy uses fewer resources,” he said.

Unofficial results of general election on March 24, suggested that no single party won a majority and the election was marred with many irregularities, leading to doubt about which political parties would form a new coalition government.

Asean finance ministers push for financial service liberalisation under RCEP

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http://www.nationmultimedia.com/detail/Economy/30367229

Asean finance ministers push for financial service liberalisation under RCEP

Breaking News April 05, 2019 20:30

By The Nation

“We reiterate our commitment to strengthening Asean’s partnership with regional partners. We aim to conclude the financial services annex of the Regional Comprehensive Economic Partnership [RCEP] negotiation by the end of 2019,” a joint statement from Asean finance ministers and central bank governors’ meeting read.

The two-day meeting held in Chiang Rai wrapped up on Friday.

Thai Finance Minister Apisak Tantivorawong told the press that Asean members expect the RCEP free-trade agreement to boost trade and investment in the region, compensating for the adverse impacts of trade protectionism.

RCEP comprises the 10-Asean bloc plus Australia, China, Japan, India, New Zealand and South Korea.