The Stock Exchange of Thailand (SET) Index would fluctuate between 1,650 and 1,670 points on Thursday, Krungsri Securities predicted.
It said uncertainty over the US Federal Reserve’s move to raise the interest rate to tackle inflation, resulting in a rising 10-year bond yield, is still pressuring the index.
“However, rising oil prices, foreign fund inflows, speculation on shares of companies whose business turnover in 2021 is expected to improve, and signs of oversold stocks would help boost the index,” Krungsri Securities said.
It recommended investors purchase the following companies’ shares:
• PTTEP, Top, PTTGC, IVL and SPRC, which benefit from a rising oil price and gross refining margin.
• BBL, TTB, KBank, KTB and BLA, which benefit from news of an interest rate hike.
• AOT, Mint, Centel, ERW, AAV, which would benefit from the Cabinet’s move to consider implementing the fourth phase of the “Rao Tiew Duay Kan” (We Travel Together) tourism promotion scheme next week.
The SET Index closed at 1,658.24 on Wednesday, down 2.03 points or 0.12 per cent. Transactions totalled 96.18 billion baht, with an index high of 1,667.44 and a low of 1,653.38.
The top five stocks with the highest trade value were KBank, True, PTT, PTTEP and SCB.
Household debt is likely to hit nearly 90 per cent of gross domestic product in the first half of the year, according to Siam Commercial Bank’s Economic Intelligence Centre (EIC).
The EIC estimates household debt to be in the range of 89.5 to 90.5 per cent of GDP, before gradually decreasing in the second half of the year when the impact of the Omicorn virus variant decreases.
Household loan growth from the banking system in the third quarter slowed down in all major credit categories. However, personal loans continued to expand at a high level based on liquidity demand to offset the steep drop in income.
The problem of non-formal debt in the household sector tends to accelerate from households that need credit to pay for their expenses but have limited access to credit in the system. Most of them are already vulnerable low-income households, the EIC said.
The ratio of household debt to GDP in Thailand is likely to rise again within the first half of 2022. The main risk factor comes from the Omicron virus and how it will affect household income and increase loan demand.
This will challenge the process of repairing the balance sheet of the household sector and slow down the recovery of household finances, which will further affect household spending trends and credit quality, the EIC said.
Therefore, there must be government assistance measures for debt restructuring, income remedies, employment support, and labour reskilling programmes to increase the ability to earn money, including liquidity support measures to prevent informal debt problems, the EIC suggested.
The Bank of Thailand said that Thai household debt, as of the third quarter of 2021, amounted to 14.3 trillion baht, representing a growth rate of 4.2 per cent year on year, decelerating from the previous quarter. Meanwhile, the household debt-to-GDP ratio stood at 89.3 per cent, unchanged from the previous quarter, considered to be a high level.
Sunchai Kooakachai, Director and Head of Research and Advisory, Knight Frank Thailand said that During the second half of 2021, the overall condominium market in the Cha-am Hua-Hin Khao-Tao area continued to slow in terms of both supply and demand.
Asurvey found that the number of new projects launched for sale throughout the year included only two projects.
Also, the Covid-19 epidemic of the past two years has caused condominium developers in the area to choose to wait to see the situation before launching or developing a new project.
Although Hua Hin remains a popular holiday destination for Bangkok residents, sales of condominiums continue to slow from the first half of the year.
Supply
The cumulative supply of condominiums in the Cha-am Hua-Hin Khao-Tao area before 2008 to the second half of 2021 totalled 28,055 units.
In the second half of 2021, the supply of new condominiums launched for sale was from one project, with approximately 136 units, located in Hua Hin Soi 94.
Most of the condominiums are in the Cha-am area, accounting for 58 per cent, followed by Khao Tao and Khao Takiab at 13 and 11 per cent, respectively.
The supply of condominiums in Hua Hin accounted for 10 per cent of the total supply, while condominiums located in the in-land mountainous accounted for 8 per cent.
Of the total supply, most of the condominiums, at 55 per cent, are those without sea views while sea view condominiums accounted for 45 per cent.
Demand
In the second half of 2021, a total of 20,571 condominiums in the Cha-am Hua-Hin Khao-Tao area have been sold out of a total supply of 28,055 units, representing a sales rate of 73 per cent.
The sales rate is relatively stable compared to 2020. In the second half of 2021, only 154 units were sold, taking the total number of units sold throughout the year to 380 units.
Overall, the number of units left for sale, as of December 2021, is approximately 7,484 units. In projects that have been launched over five years ago, there are approximately 3,200 units left for sale or 50 per cent of the remaining supply.
At present, 90 per cent of the main buyers are Thais living in Bangkok while 5 per cent are Thais from provincial areas.
Another 5 per cent are retired expats from Scandinavia, Norway, the Netherlands, and France; most foreigners living in Hua Hin prefer to buy a house or a villa because they are relatively tranquil and private, and suitable for long term occupancy.
Condominiums in Khao Takiab enjoyed the highest sales rate at 96 per cent, followed by condominiums in Khao Tao and in-land areas, with sales rates of 95 per cent and 90 per cent, respectively.
The sales rate in Hua Hin and Cha-am was 83 per cent and 60 per cent, respectively. Cha-am is the area with the highest number of unsold condos at 6,468 units, or approximately 40 per cent of the total remaining supply.
At present, there is almost no land next to the sea in the Hua Hin area that can be developed. Remaining lands suitable for project development are in Cha-Am, but the area is still less popular than Hua Hin, which affords more convenience and easier access to amenities.
In the in-land mountain area that is not close to the sea, there is still a lot of space left for project development — and it should be of interest to investors because it is within the Hua Hin city limits and is favoured by foreigners.
Asking Prices
The average asking price for sea view condominiums in this area is around 141,670 baht per square metre. Sales prices have increased by 2 per cent from the first half of 2021, with new sea view projects having an average asking price of 250,000 baht per square metre.
The average asking price of condominiums without Non-sea views is approximately 70,700 baht per square metre. Prices are relatively stable and decreased slightly by 0.1 per cent from the first half of 2021, due to projects that still have more than 50 per cent unsold units in the Cha-am area.
Developers continue to offer promotions and discounts to close out the sales of such projects.
Outlook
The overall Hua Hin condominium market in 2022 is expected to be relatively stable. This is because developers of condominium projects in the area are still assessing the situation and slowing down launches or the development of new projects.
However, condos in the seafront area have relatively few units for sale and their selling prices tend to increase. Meanwhile, it may take some time to move the unsold units in the Cha-am area; some projects may experience a price drop given the age of the condominiums.
Although the Covid-19 epidemic has had a negative impact on the condominium market in the Cha-am Hua-Hin Khao-Tao area, it also generated more interest in the area’s condominiums among the people in Bangkok.
Such potential buyers would like to avoid epidemic situations like that which occurred in the past. This group of buyers see the area as a place where they prefer to ride out the epidemic rather than in being Bangkok.
This results in more demand in the Cha-am Hua-Hin Khao-Tao condominium market, which is likely to expand further once the Covid-19 epidemic has passed.
The baht opened at 33.12 to the US dollar on Wednesday, strengthening from Tuesday’s closing rate of 33.09.
The currency is likely to move between 33.05 and 33.20 to the greenback during the day and even swing sideways unless it is influenced by a new factor, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon believed the baht is likely to swing sideways on a strengthening dollar as investors were concerned the US Federal Reserve would increase the interest rate more than expected in March.
Moreover, foreign investors were offloading Thai stocks, further pressuring the baht.
However, hopes of the country reopening fully helped the baht to advance. And if the gold price goes up, the baht might see a further strengthening.
The key support level for the Thai currency would be from 32.90 to 33.00 – a level which importers are waiting for so they can purchase dollars. Meanwhile, the baht’s key resistance level would be from 33.20 to 33.30 – a level eyed by exporters so they can offload their dollars.
Krungsri Securities forecast the Stock Exchange of Thailand (SET) Index on Wednesday (January 19) would fall to between 1,650 and 1,655 points.
It said uncertainty over the US Federal Reserve’s move to raise the interest rate to tackle inflation has caused the US 10-year bond yield to hit the highest in two years, as well as fund flow volatility.
“However, mass buy ups of shares which benefit from rising oil prices and hopes over improvement in business turnover would help boost the index,” Krungsri Securities said.
It also recommended buying of the following companies’ shares as an investment strategy:
PTTEP, TOP, PTTGC, IVL and SPRC, which benefit from rising oil price and gross refining margin.
BBL, TTB, KBANK and BLA, which benefit from news of interest rate hike.
AOT, MINT, CENTEL, ERW, AAV, AMATA, WHA HMPRO and CPN, which benefit from the decline in domestic Covid-19 cases.
The SET Index closed at 1,660.27 on Tuesday, down 16.60 points or 0.99 per cent. Transactions were totalled 113.95 billion baht with an index high of 1,682.93 and a low of 1,660.15.
Top five stocks with the highest trade value were KBANK, TCK, GULF, GUNKUL and BBL.
Priority Pass members now have access to three domestic lounges in Thailand thanks to an agreement with the national carrier.
Priority Pass members now have access to three domestic lounges in Thailand thanks to an agreement with the national carrier.
Thai Airways International (THAI) is welcoming members to its Royal Orchid lounges at Suvarnabhumi, Chiang Mai and Phuket airports.
All three lounges offer authentic Thai food, ambience and hospitality under the 4Cs: Confidence, Clean, Care and Comfort.
Priority Pass members can use the iOS or Android app to access over 1,300 airport lounges in 148 countries and territories across the world. Included is 2.5 hours of lounge usage with free Wi-Fi and snack & refreshment bar (alcohol not included).
Charoen Pokphand Foods Pcl (CP Foods) has pledged to guard against deforestation with responsible sourcing of agricultural raw materials from farmers and suppliers, so as to protect biodiversity and natural resources of Thailand and countries where the company operates.
Charoen Pokphand Foods Pcl (CP Foods) has pledged to guard against deforestation with responsible sourcing of agricultural raw materials from farmers and suppliers, so as to protect biodiversity and natural resources of Thailand and countries where the company operates.
Biodiversity and forest sustainability are keys to food security of people across the world. The company is committed to protecting biodiversity and achieve zero deforestation, Wuthichai Sithipreedanant, senior vice president for corporate social responsibility and sustainable development of CP Foods, said. It has developed a transparent traceability system to make sure that every CP Foods business unit in Thailand acquires ingredients from a sustainable source.
CP Foods has expanded this guideline to its overseas businesses since 2021, he added.
He said multiple efforts have been made to ensure that everyone in the company’s supply chain realises the importance of biodiversity and natural resources to food business, adding the company will host training courses to raise awareness on biodiversity among its suppliers this year.
“The purpose is to preserve our oceans and forests in line with the United Nations Sustainable Development Goals,” Wuttichai said.
He said the company also has developed and implemented a biodiversity management plan. Meanwhile supplier audits are carried out to ensure that the ingredient is not sourced from deforested areas. This includes “Self-Sufficient Farmers, Sustainable Corn” projects that buy raw materials only from plantation fields with legal land deeds and discourage farmers from burning the stubble.
Wuthichai added that under the CPF 2030 Sustainability in Action plan, the company continues to conserve, protect, and restore watershed forests and mangrove forests via projects such as the second phase of the CPF Rak Nives at Phraya Doen Thong, Mountain Project, Lopburi province, and The CPF Grow-Share-Protect Mangrove Forestation Project in Rayong, Samut Sakhon and Trat provinces. These two projects, covering 14,000 rai (2,240 hectares), aim to make a positive impact on the environment, society and the economy in addition to reducing the impact of climate change, he said.
Thailand’s plant-based protein exports surged 64 per cent in 2021, riding a boom in healthy lifestyle trends. Auramon Subthaweetham, director-general of the Department of Trade Negotiations, revealed that plant-based products that are processed to have the same characteristics as meat are gaining in popularity amid the upward consumer healthcare trend.
The Organization for Economic Cooperation and Development (OECD) forecasts that by 2022 the vegetable protein market will be worth more than $10 billion. The main exporting countries are the US, China and the European Union.
She said Thailand is the world’s 25th largest vegetable protein exporter and third in Asean after Singapore and Malaysia.
During January to November 2021, Thailand exported plant protein products worth $2.57 million. Exports to many countries increased from the same period last year, such as Asean, Thailand’s No. 1 export market (43 per cent), including Myanmar (82%), Singapore (195%) and Laos (969%), besides China (27%) and Australia (502%).
In addition, Thailand also exported vegetable protein products to the dual free-trade agreement (FTA) market worth $1.65 million. It accounted for 64 per cent of total vegetable protein exports.
Entrepreneurs can take advantage of the FTAs that Thailand has with 18 trading partners to expand their exports and increase their competitive advantages, Auramon said. Currently, 16 FTA partners, namely ASEAN countries, China, Hong Kong, Australia, New Zealand, India, Chile and Peru, are no longer levying tariffs on Thai plant protein products.
From February 1, the Regional Comprehensive Economic Partnership Agreement will also make it binding on South Korea to gradually reduce import duties on tofu products from Thailand to zero by 2036, she added.
Property transfer and mortgage fees will remain at 0.01 per cent until the end of 2022 for properties costing no more than 3 million baht.
The government had lowered transfer fees from 2 per cent to 0.01 per cent and mortgage fees from 1 per cent to 0.01 per cent in 2019 in a bid to support the real-estate sector. The subsidy was to be offered until December 31, 2021.
“The Cabinet earlier this month agreed to extend the campaign until December 31, 2022, as part of the government’s economic stimulus plan,” Nisit Chansomwong, director-general of Department of Lands, said on Tuesday.
The subsidy covers houses, condominiums or land with an estimated value of no more than 3 million baht. The subsidy applies to both new and second-hand property, but can only be used by Thai nationals.
“The department believes this campaign will help Thais get their own property more easily and will also promote the property sector as well as other related industries that have been suffering from the fallout of Covid-19,” Nisit said.
The Stock Exchange of Thailand (SET) rose by 3.80 points or 0.23 per cent to 1,680.67 in the morning trade on Tuesday (January 18).
Krungsri Securities forecast the day’s index would rise to between 1,683-1,690 points before falling.
It said the index gained positive sentiment from the decline in domestic Covid-19 cases and speculations in stocks which gained specific positive sentiments, such as the cooperation between Gulf Energy Development and Binance on setting up a digital asset trading centre and banks’ move to announce their business turnover this week.
“However, fund flow slowdown due to uncertainty over the US Federal Reserve’s move to raise the interest rate is likely to pressure the index,” Krungsri Securities said.
It advised investors to follow the Cabinet’s move to launch measures to reduce living costs and stimulate purchase, China’s move to cut interest rate, and outcome of the Bank of Japan’s meeting.
It also recommended buying of the following companies’ shares as an investment strategy:
PTTEP, TOP, PTTGC, IVL and SPRC, which benefit from rising oil price and gross refining margin.
BBL, TTB, KBANK and BLA, which benefit from news of interest rate hike.
AOT, MINT, CENTEL, ERW, AAV, AMATA, WHA HMPRO and CPN, which benefit from the decline in domestic Covid-19 cases.
The SET Index closed at 1,676.87 on Monday, up 4.24 points or 0.25 per cent. Transactions were totalled 82.35 billion baht with an index high of 1,680.39 and a low of 1,672.93.
Priority Pass members can use the iOS or Android app to access over 1,300 airport lounges in 148 countries and territories across the world. Included is 2.5 hours of lounge usage with free Wi-Fi and snack & refreshment bar (alcohol not included).
He said the company also has developed and implemented a biodiversity management plan. Meanwhile supplier audits are carried out to ensure that the ingredient is not sourced from deforested areas. This includes “Self-Sufficient Farmers, Sustainable Corn” projects that buy raw materials only from plantation fields with legal land deeds and discourage farmers from burning the stubble.
Wuthichai added that under the CPF 2030 Sustainability in Action plan, the company continues to conserve, protect, and restore watershed forests and mangrove forests via projects such as the second phase of the CPF Rak Nives at Phraya Doen Thong, Mountain Project, Lopburi province, and The CPF Grow-Share-Protect Mangrove Forestation Project in Rayong, Samut Sakhon and Trat provinces. These two projects, covering 14,000 rai (2,240 hectares), aim to make a positive impact on the environment, society and the economy in addition to reducing the impact of climate change, he said.
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