Kasikorn Research slashes growth forecast for Thai economy
Kasikorn Research Centre has slashed its growth forecast for the Thai economy in this 2021 from 2.6 per cent to 1.8 per cent following the latest outbreak of Covid-19 in the country.
The research centre said the downgrade came despite positive factors such as the upswing in exports as well as current and future government remedial measures.
KResearch said the third wave of Covid-19, which emerged late last month, would impact previous predictions of 2 million foreign tourist arrivals this year.
It pointed out that Thailand’s vaccination rate was a key factor in combating Covid-19 and opening the country to international tourists.
As of Sunday (April 18), only 0.75 per cent of the country’s population had been vaccinated against Covid-19, according to Oxford University’s “Our World in Data” programme.
KResearch forecast that a prolonged outbreak or a fourth wave of infections this year could result in zero growth for the Thai economy in 2021.
Krungsri Research cuts Thailand’s 2021 growth forecast to 2.2%
In a report published on Tuesday, Krungsri Research adjusted downwards Thailand’s GDP growth in 2021 from 2.5 to 2.2 per cent in line with the Covid-19 situation and drought impact.
The centre also reduced its estimate of 4 million arrivals to just 3 million owing to the pandemic, which has been affecting Thailand’s tourism and service industries.
The research house also adjusted public investment estimates down from 10.5 per cent to 7.8 per cent, again due to the impacts of Covid-19 and drought.
The estimate on private investment and consumption, however, was adjusted upwards from 2 to 3.3 per cent and 1.8 to 2.9 per cent respectively due to the government’s economic stimulus measures and increased consumption in the first quarter.
Krungsri Research has also adjusted upward its estimate for exports in 2021 from 3.8 per cent to 6 per cent due to improving global economic conditions. It also predicts an expansion in imports from 5.2 per cent to 12.5 per cent.
Krungsri Research, however, says Thailand’s economic recovery will be delayed and be slower than forecast earlier, due mostly to the third wave of infections.
The research house also suggested the wave could peak between late April and early May with a median forecast of daily new cases peaking at 2,600.
Thailand’s cumulative cases could surge beyond 100,000, and the number of daily cases will fall to below 100 by early July, it predicted.
Rising US bond yield and volatility in foreign funds flow could pressure SET
The Stock Exchange of Thailand (SET) Index rose by 2.80 points, or 0.18 per cent, to 1,577.71 in the morning trade on Tuesday. A Krungsri Securities expected SET to fluctuate between 1,565 and 1,585 despite the decline in Thailands Covid-19 cases and strong Tiscos first-quarter perfomance.
“The index would be under pressure due to the rise in US bond yield and volatility in foreign funds flow,” he said.
He advised investors to follow banks’ first-quarter performance that would be announced this week.
He recommended that investors buy:
▪︎ TQM, STGT, COM7, SYNEX, BDMS, BCH and CHG, which benefit from the Covid-19 outbreak.
▪︎ PSL, TTA and RCL, which would benefit from a rise in the freight rate.
▪︎ HANA, KCE, TU, and CPF, which benefit from the weakening baht.
The SET Index closed at 1,574.91 on Monday, up 25.95 points or 1.68 per cent. The volume of total transactions was Bt87.45 billion with an index high of 1,574.97 and a low of 1,552.91.
Thai currency stays firm against dollar but room for depreciation
The baht opened at 31.21 to the US dollar on Tuesday, unchanged from Mondays close. The Thai currency is likely to move between 31.15 and 31.30, Krungthai Bank market strategist Poon Panichpibool said.
He said the baht had strengthened due to the weakening dollar. However, there were factors looming to weaken the baht, such as the Covid-19 situation in Thailand.
Poon added that importers aimed to purchase the dollar when the baht was at 31.15 to the greenback. Also, exporters planned to sell the dollar when the baht weakens to 31.50 per US dollar.
The market strategist mentioned that the market on Tuesday would focus on results of registered companies around the world. If the turnover were in positive zone, investors would show readiness for risk, he explained.
Rising US bond yield and investors mass sell-offs takes glitter off gold
The price of gold dropped by THB250 per baht weight in morning trade on Tuesday, the Gold Traders Association reported. As of 9.28am the buying price of a gold bar was THB26,050 per baht weight and selling price THB26,150, while gold ornaments were THB25,574.92 and THB26,650, respectively.
At close on Monday, the buying price of a gold bar was THB26,300 per baht weight and selling price THB26,400, while gold ornaments were THB25,832.64 and THB26,900, respectively.
Spot gold price on Tuesday was US$1,770 (THB55,263) per ounce compared to Monday when it dropped by $9.6 to $1,770.6 per ounce, due to the rise in US bond yield and mass sell-offs of precious metal after its price had risen continuously.
Hong Kong gold price on Tuesday dropped by HK$140 to $16,380 (THB65,850) per tael, the Chinese Gold and Silver Exchange Society reported.
JKN Global Media (JKN) announces its strategy to be the number one content and commerce company, aiming to generate THB5 billion revenue within three years
Apr 19. 2021
Jakkaphong “Anne” Jakrajutatip
By The Nation
Bangkok, (19 April 2021), JKN’s chief executive officer, Jakkaphong “Anne” Jakrajutatip, said the company is now ASEAN’s leading content manager and distributor via satellite TV, digital TV, and online platforms.
She said the achievement resulted from the board’s expertise and its ‘superstar marketing’ strategy, which allows the company to curate content that meets the customers’ needs.
“Korean, Indian and Filipino series fever has emerged in Thailand due to our many years of experience in content management and distribution,” says Anne Jakrajutatip, CEO of JKN Global Media PLC. “As JKN is a content company with high growth potential, the company was listed on the Stock Exchange of Thailand on November 12 last year to allow more institutional and retail investors to invest in the company’s share and witness the company’s growth together,” she added.
To promote JKN as a content and commerce company to maintain sustainable growth, she said the company had launched health and beauty products such as C-TRIA, Olig Fiber, V-Allin, Hair Now and Instinct by Anne JKN.
“To achieve a quantum leap in sales, we use ‘superstar marketing’ strategy by hiring celebrities to be presenters of our products,” she said.
“In addition, Herbal Drinks under Cupid brand, such as Dragon X and Tiger X, are expected to be launched within this month.”
She added that more than ten dietary supplements and drinks with hemp extract are currently under development with DOD Biotech.
“We are seeking more partners to develop products with hemp extract in a bid to meet customers’ needs,” she added.
She said JKN had acquired DN Broadcast’s NEW18 digital TV channel, whose name will be changed to JKN18 to expand its customer base and boost its commerce business’s growth in line with the new normal.
“With quality product innovation, JKN18 channel, and superstar marketing strategy, we have confidence that our commerce business will enable the company to achieve our ambitious sales growth,” she added.
Teeraphat Petporee
JKN’s chief financial officer Teeraphat Petporee said the company had invested THB1.1 billion to acquire DN Broadcast’s NEW18 digital TV channel.
“After the acquisition, JKN will use its knowledge and experience in the content business to enhance the entertainment and news content production to boost the channel’s rating to become one of the country’s top ten channels,” he said.
He added that JKN is currently restructuring the organization to boost sales and gross profit margin for the long term.
“The company aims to generate over THB5 billion revenue within three years. The company’s revenue this year is expected to hit THB2.5 billion, of which THB2 billion will be from content business and THB500 million from commerce business,” Teeraphat Petporee added.
Huawei ‘can survive US sanctions’ – but won’t be building self-driving cars
Apr 19. 2021
Eric Xu
By The Nation
Chinese tech titan Huawei unveiled five strategic initiatives for the post-Covid world at its 18th Global Analyst Summit, held recently in Shenzhen.
Huawei reaffirmed its commitment to getting everyone in Asia-Pacific online but said it won’t follow tech giants like Google by making its own cars.
The company’s five strategy initiatives are:
1. To optimise its portfolio to boost resilience by strengthening its software capabilities and investing more in businesses that are less reliant on advanced process techniques, as well as in components for intelligent vehicles.
2. Maximise 5G value and define 5.5G with industry peers to drive the evolution of mobile communications.
3. Provide a seamless, user-centric, and intelligent experience across all user scenarios.
4. Innovate to reduce energy consumption for a low-carbon world.
5. Address supply continuity challenges.
Huawei also responded to the ongoing global shortage of microchips and semiconductors used to build them.
“Rebuilding trust and restoring collaboration across the global semiconductor supply chain is crucial to bringing the industry back on track,” said Eric Xu, Huawei’s chairman.
The shortage has heightened trade tensions with the United States, which accuses China of stockpiling product and preventing its export.
Asked about Huawei’s strategy to survive under US sanctions, Xu said the company remained confident and determined to continue working with global customers and partners to address supply challenges.
Any chipmaker reliant on American technology cannot sell to Huawei without being penalised by US authorities.
Xu said Huawei will manage its existing inventory to sustain it for longer, which meant “taking a more focused approach as we work with different regions and customers”.
The company had no hope of being removed from the US sanctions list in the short term, he added.
Huawei also reaffirmed its strategy to help others build self-driving cars with its tech expertise, rather than building cars itself. Huawei has partnered with three Chinese carmakers – Beijing New Energy Automobile, Chongqing Chang’an and Guangzhou Automobile Group.
Also underlined was the company’s push to bring digital to every person, home and organisation in the Asia Pacific region.
Xu said Huawei business growth had remained stable amid the Covid-induced economic crisis, with revenue growing 3.8 per cent and net profits increasing 3.2 per cent. The company’s strategy last year was to stockpile in bulk, so its operating cash flow was 35.2 billion yuan, which was also in line with its forecasts.
The Stock Exchange of Thailand (SET) Index closed at 1,574.91 on Monday, up 25.95 points or 1.68 per cent. The volume of total transactions was Bt87.45 billion with an index high of 1,574.97 and a low of 1,552.91.
In the morning session, Krungsri Securities forecast the day’s index would fluctuate between 1,540 and 1,560 points despite positive sentiment from the US Federal Reserve maintaining a low interest rate, and the falling US bond yield.
“However, uncertainty over the Covid-19 outbreak in Thailand after the number of cases rose by over 1,700 on Sunday will impact economic recovery and pressure the index,” said Krungsri Securities.
The caseload fell today to 1,394, offering hope for investors that the latest outbreak is being effectively controlled.
The 10 stocks with the highest trade value today were INTUCH, DELTA, KBANK, SAWAD, CPF, GULF, COM7, ADVANC, SCB and SCGP.
Other Asian indices were on the rise:
Japan’s Nikkei Index closed at 29,685.37, up 2.00 points or 0.0067 per cent.
China’s Shang Hai SE Composite Index closed at 3,477.55, up 50.93 points or 1.49 per cent, while Shenzhen SE Component Index closed at 14,117.80, up 397.05 points or 2.89 per cent.
Hong Kong’s Hang Seng Index closed at 29,106.15, up 136.44 points or 0.47 per cent.
South Korea’s KOSPI closed at 3,198.84, up 0.22 points or 0.0069 per cent.
Taiwan’s TAIEX Index closed at 17,263.28, up 104.47 points or 0.61 per cent.
The Stock Exchange of Thailand (SET) Index rose by 7.87 points, or 0.51 per cent, to 1,556.83 in the morning session on Monday.
A Krungsri Securities analyst forecast that the SET Index would fluctuate between 1,540 and 1,560 points despite positive sentiment from the US Federal Reserve’s resolution to maintain the interest rate at a low level and lower US bond yield.
“However, uncertainty over the Covid-19 outbreak in Thailand after the number of Covid-19 cases increased by over 1,700 cases on Sunday would impact economic recovery and pressure the index,” he said.
He recommended that investors buy:
▪︎ TQM, STGT, COM7, SYNEX, BDMS, BCH and CHG, which benefit from the Covid-19 outbreak.
▪︎ PSL, TTA and RCL, which would benefit from a rise in the freight rate.
▪︎ HANA, KCE, TU, and CPF, which benefit from the weakening baht.
The SET Index closed at 1,548.96 on Friday, up 7.84 points or 0.51 per cent. Total transactions amounted to Bt89.46 billion with an index high of 1,550.26 and a low of 1,529.29.
The price of gold rose by Bt50 per baht weight in morning trade on Monday, the Gold Traders Association reported.
As of 9.24am, the buying price of a gold bar was Bt26,150 per baht weight and selling price Bt26,250, while gold ornaments were priced at Bt25,681.04 and Bt26,750, respectively.
At close on Saturday, the buying price of a gold bar was Bt26,100 per baht weight and selling price Bt26,200, while gold ornaments cost Bt25,635.56 and Bt26,700, respectively. The price had risen by Bt250 per baht weight last week.
Spot gold price on Monday was US$1,777 (Bt55,474) per ounce compared to Friday when it rose by $13.4 to $1,780.2 per ounce, due to fall in US bond yield, the dollar and bitcoin.
Hong Kong gold price rose by HK$140 to $16,520 (Bt66,367) per tael, the Chinese Gold and Silver Exchange Society reported.
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