The Stock Exchange of Thailand (SET) Index fell by 1.84 points, or 0.13 per cent, to 1,465.14 in the morning session on Monday.
The SET is predicted to fall to between 1,450 and 1,455 points in line with the fall in the US stock market due to uncertainty over the speculation in GameStop shares, said Krungsri Securities analyst.
He said foreign funds are likely to flow out of the Thai stock market due to the impact of Covid-19 on the economy.
“However, the index would rebound from mass buy-ups of shares of companies whose fourth-quarter turnover is expected to improve,” he said.
He recommended that investors buy:
▪︎ PTTGC, TOP, IVL, EPG, VNT, CBG, ROJNA, TVO, STGT, CPF, RCL, SYNEX, COM7, XO, WICE, JMT, MTC, SAWAD and KCE whose fourth-quarter earnings are expected to improve.
▪︎ CBG, ICHI, OSP, SAPPE, RBF and DOD, which benefit from news related to hemp.
The SET Index closed at 1,466.98 on Friday, down 1.53 points or 0.10 per cent. The volume of total transactions was Bt95.78 billion with an index high of 1,480.44 and a low of 1,455.55.
The price of gold rose by Bt50 per baht weight in morning trade on Monday, the Gold Traders Association reported.
As of 9.27am, 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 were Bt25,635.56 and Bt26,700 respectively. The price had dropped by Bt150 per baht weight last week.
Spot gold moved to US$1,855 (Bt55,459) per ounce in the morning, while Comex (Commodity Exchange) gold rose by $9.1 to $1,850.3 per ounce on Friday, thanks to mass buy-ups of safe-haven assets after the sharp fall in US stock market due to uncertainty over speculation on GameStop shares.
Meanwhile, gold gained positive sentiment from the delay in delivery of Covid-19 vaccine, which affects economic recovery.
Hong Kong gold price rose by HK$70 to $17,140 (Bt66,093) per tael, the Chinese Gold and Silver Exchange Society reported.
The GameStop share drama that has rocked Wall Street could happen in the Thai stock market too, due to globalisation of data and the IT revolution, an economist has warned.
Meanwhile, Kasikorn Research Centre has predicted that the Thai central bank will leave the key interest rate unchanged when the Monetary Policy Committee (MPC) meets on February 3.
Anusorn Tamajai, former dean of the Rangsit University’s Faculty of Economics, has warned local investors that shares of some companies could be targets for speculative trading in the same manner as the shares of GameStop, a VDO games retailer in the United States.
The skyrocketing price of GameStop has been the talk of the town after some Wall Street heavyweights faced huge financial losses on their bet against GameStop shares, while amateur investors defeated their plans with frenzied buying of the company’s shares that sent its price soaring. Critics blame social media platforms such as Reddit and new applications that facilitate amateurs to jump into the stock market where they could lose their money in speculative trading.
The IT technology that led to globalisation of information could change world capital markets and cause some countries to lose control over their economic management and tax revenue. It could also lead to a financial bubble that could go bust in case share prices are not backed by economic fundamentals, said Anusorn.
Thai investors could use an application or the investment room chat at pantip.com to speculate on shares, as the amateur investors in the US did on GameStop, he warned.
The speculative trading has expanded to other shares trading on Wall Street, including movie theatre AMC, retail business Bed, Bath & Beyond, and mobile phone brand Blackberry, said Anusorn.
On the positive side, IT technology could lead to democratisation of capital as proposed by the economist John Kenneth Galbraith. A new wave of investors could create a countervailing power against the establishment force that has long monopolised the market and economy.
Blockchain technology and the upcoming ‘quantum computing,’ superfast computing calculation, is expected to dramatically change the landscape of global financial markets, the economy and the manufacturing sector, he predicted.
IT and Blockchain technologies have made cryptocurrencies and digital money widely available and it is difficult for regulators, such as the central banks around the world, to control the use of cryptocurrencies, said Anusorn.
He revealed that there were only two Thai companies that were seriously studying how to apply quantum computing technology to their businesses, while governments in the US, Europe, China, Taiwan, South Korea and Singapore have supported private companies to make use of quantum computing, he said, urging the Thai government to do the same.
Meanwhile, Kasikorn Securities forecast that the Stock Exchange of Thailand Index is expected to move between 1,425 to 1,500 next week (February 1 to 5) after the index dropped 2.06 per cent from last week to close at 1,466.98 on Friday. Investors will monitor the outcome of Bank of Thailand (BOT)’s MPC meeting on the policy rate on February 3, the latest developments in the Covid-19 infection and fourth-quarter performance of listed firms and the consumer price index in January.
Kasikorn Research Centre expects the BOT to maintain the policy rate at 0.5 per cent, as the government has launched the latest virus relief package equivalent to 1.4 per cent of GDP. Policymakers also feel comfortable with the deceleration in the baht’s appreciation because the weaker baht would not disrupt economic recovery, according to the research house.
Investors will also keep an eye on the US stimulus package, US economic indicators including purchasing managers index (PMI) in both manufacturing and service sectors, non-farm employment and unemployment rate in January. Other key economic indicators include the euro-zone’s gross domestic product in the fourth quarter of last year and January’s PMI composite in the euro-zone, China and Japan, Kasikorn Research Centre said.
The centre also expected the baht to move between Bt29.80 to Bt30.20 a dollar next week (February 1 to 5). The baht closed at Bt29.92 a dollar on Friday, slightly up from Bt29.99 against the dollar on January 22. This week, the baht moved in narrow range against the US dollar in the early days of the week but rose in line with the yuan and regional currencies later in the week.
Factors that will affect the baht next week are the outcome of the MPC meeting, latest developments in the virus infection, progress of the US stimulus package and key US economic data.
In a bid to adapt to the “new normal”, Kasikornbank (KBank) has redefined its strategies to aim for loan growth of 4-6 per cent.
Kattiya Indaravijaya, KBank’s chief executive officer, said despite the Covid-19 vaccine, the global economy will only see a gradual recovery.
With this in mind, KBank has announced its financial targets for 2021 as follows:
• Loan Growth: 4-6 per cent. The bank expects strong retail loan growth of 11 to 14 per cent, SME loan growth of 2 to 4 per cent, and corporate loan growth of 1 to 3 per cent.
• Net Interest Margin: 3.1 to 3.3 per cent in line with interest rate trends.
• Net Fee Income Growth: Low single-digit growth. Net fee income will grow from credit-card business, loan-related and fund management business.
• Cost to Income Ratio: Mid-40s. Revenue growth is under pressure due to slow economic recovery. However, the bank will focus on cost management and productivity improvement, with new investments for future growth.
• Non-performing loan ratio (gross): 4 to 4.5 per cent. The pandemic has had an impact on asset quality, while the bank is closely monitoring and reviewing asset quality.
• Credit cost per year: Up to 160 bps. Maintaining conservative assumptions and prudent financial policy amid high uncertainty.
Kattiya said amid drastic changes in consumer behaviour and economic conditions owing to the pandemic, KBank has reviewed its business strategies so they are consistent with the new business context. These include a commitment to the principles of sustainability with adherence to the “customer-centricity” philosophy and a goal to empower every customer’s life and business by offering end-to-end services that meet customers’ needs.
To achieve this, KBank has set the following imperatives:
• Developing strategies for business growth and customer responsiveness
– Upgrading digital platforms to allow customers to make payments, as well as keep track of their financial data.
– Reimagining commercial and consumer lending to meet customers’ lifestyle and business needs while also increasing income for KBank with an acceptable risk appetite.
– Introducing relationship managers to help retail customers make informed decisions on investment.
– Penetrating regional markets to boost the opportunity to access customers in other Asean countries.
– Strengthening sales and service by integrating all channels so customers can conduct transactions anytime and anywhere.
– Improving value-based productivity by optimising human resources, data, financial and technological capabilities.
• Creating a trusted brand via communication and management of experience.
• Enhancing competitiveness through:
– Ecosystem partnership and harmonised channels.
– Leveraging customer data to offer a personalised lending experience and achieving fair, risk-adjusted returns.
– Proactively identifying potential risks and establishing loss prevention and detection.
– Regional payment and settlement.
– Expanding data analytics capability to enhance business opportunities and operational efficiency.
– Cybersecurity.
– Developing talent for an agile organisation.
– Adopting modern, world-class technology to make
KBank a top financial service provider in the region.
Kattiya said with a strategic plan to move forward efficiently, prudent financial management and preparedness for future uncertainties, KBank will continue to maintain its strength and help the Thai economy successfully navigate this crisis.
The Stock Exchange of Thailand (SET) Index closed at 1,466.98 on Friday, down 1.53 points or 0.10 per cent. The volume of total transactions was Bt95.78 billion with an index high of 1,480.44 and a low of 1,455.55.
In the morning session, an analyst at Krungsri Securities expected the day’s index to fluctuate between 1,460 and 1,490 following a fall in the number of US jobless claims and mass buy-up of shares whose 2020 fourth-quarter results are expected to improve.
However, foreign investors’ net sales of about Bt10 billion over the past week would pressure the index, he said.
The 10 stocks with the highest trade value today were KBANK, PTT, EA, PTTEP, BBL, GPSC, SCB, CPALL, IRPC and IVL.
As of 4.30pm, the price of oil dropped by US$0.02 or 0.04 per cent to $52.32 per barrel, while gold rose by $11.40 or 0.62 per cent to $1,852.60 per ounce.
Other major Asian indices all saw bigger falls than the SET:
Japan’s Nikkei Index closed at 27,663.39, down 534.03 points or 1.89 per cent.
China’s Shang Hai SE Composite Index closed at 3,483.07, down 22.11 points or 0.63 per cent, while Shenzhen SE Component Index closed at 14,821.99, down 91.21 points or 0.61 per cent.
Hong Kong’s Hang Seng Index closed at 28,283.71, down 267.06 points or 0.94 per cent.
South Korea’s KOSPI Index closed at 2,976.21, down 92.84 points or 3.03 per cent.
Taiwan’s TAIEX Index closed at 15,138.31, down 277.57 points or 1.80 per cent.
Economic recovery continued in the fourth quarter of 2020, but remained uneven, said the Bank of Thailand on Friday.
Indicators of private consumption rose due to gradual recovery in household purchasing power, support from government stimulus measures, and the addition of long holidays. However, despite improvement in overall private consumption, household purchasing power remained vulnerable and uneven across income groups and geographical areas.
The value of goods exports contracted at a softer pace, following recovery in demand from trade partners.
Private investment indicators showed expansion, in line with improvement in demand and business sentiment.
Recovery in domestic and external demand also spurred a softer contraction of manufacturing production.
Public spending rose from capital expenditures, partly due to the low base effect of the delayed enactment of the 2020 budget last year. However, the tourism sector continued to contract severely due to travel restrictions on foreign tourist arrivals.
On the stability front, headline inflation was less negative due to price increases for energy and fresh food. Meanwhile,
core inflation decreased.
The labour market improved in line with the economic recovery, but remained vulnerable and uneven.
The current account registered a deficit after a surplus in the previous quarter, as the trade balance recorded a smaller surplus due to gold imports.
Economic recovery continued in December but remained uneven, said the central bank. It added that the new wave of Covid-19 that emerged mid-month had begun to affect some economic activities.
The Stock Exchange of Thailand (SET) Index fell by 3.72 points, or 0.25 per cent, to 1,464.79 in the morning session on Friday.
The SET is expected to fluctuate between 1,460 and 1,490 amid the decline in number of US initial jobless claims and mass buy-up of shares whose fourth-quarter results are expected to improve, said a Krungsri Securities analyst.
However, foreign investors’ net sales over the past five days worth approximately Bt10 billion would pressure the index, he said.
He recommended that investors buy:
▪︎ PTTGC, TOP, IVL, EPG, VNT, CBG, ROJNA, TVO, STGT, CPF, SYNEX, COM7, XO, WICE, JMT, MTC, SAWAD and KCE, whose fourth-quarter results are expected to show improvement.
▪︎ CBG, ICHI, OSP, SAPPE, RBF and DOD, which benefit from news related to hemp.
The SET Index closed at 1,468.51 on Thursday, down 29.62 points or 1.98 per cent. Total transactions amounted to Bt92 billion after the US Federal Reserve decided against launching more measures to tackle the economic impact of Covid-19.
Gojek offers insurance for parcels in partnership with Dhipaya
Jan 29. 2021
By The Nation
Gojek Thailand, Southeast Asia’s leading mobile on-demand services platform, and Dhipaya Insurance, have partnered to roll out a series of insurance services and benefits.
The companies debuted the initiative – “Send with Confidence by GoSend and Dhipaya” – which provides insurance coverage for all items sent through GoSend, Gojek’s on-demand parcel delivery service.
The initiative protects all parcel deliveries sent via Gojek’s GoSend service at no additional cost, with a maximum claim of up to Bt2,000 for items that are damaged during delivery, the company said.
The online claim process is fast and easy. Users simply submit a claim via the Gojek app Help Center, where it is processed in 1-3 days. Accepted claims will be immediately settled via bank transfer. Users can also get real-time claim status updates via SMS, the company said.
Maytinee Rodjanapunyakul, head of strategic partnerships at Gojek Thailand, said: “We’ve experienced increased demand for GoSend as users continue to rely more heavily on digital services amid the pandemic. In addition to being a fast and reliable shipping service, our cooperation with Dhipaya Insurance to enhance security underscores Gojek’s commitment to delivering a superior experience and we’ll continue to work closely together to expand benefits to users.”
Jan 28. 2021Alejandro Osorio, new country head of Grab Thailand
By The Nation
Grab on Thursday announced the appointment of Alejandro Osorio as new country head of Grab Thailand.
Osorio has switched roles from director for regional strategy and planning at Grab Holdings, to helming the Grab app’s on-demand transport, food, package delivery, and new services in Thailand.
Meanwhile Worachat Luxkanalode was appointed new executive director of Grab Thailand, responsible for corporate strategy planning as well as building ties with external stakeholders including government and business partners. Worachat is switching from his role as country head of Grab Financial Group – Thailand.
CorporateJan 29. 2021President Roongrote Rangsiyopash, centre
By The Nation
Siam Cement Group (SCG) has targeted growth in sales revenue of 5-10 per cent this year from Bt399.94 billion last year, its president Roongrote Rangsiyopash said on Thursday.
The growth will be driven by its two core businesses – chemicals and packaging.
Roongrote said he expected demand for cement and building materials to rebound in the second half of the year.
The company has set its investment budget this year at Bt65 billion-Bt75 billion. Most of that money will be spent to expand promising projects.
Last year SCG spent Bt58 billion of its Bt60 billion investment budget.
Kattiya Indaravijaya, KBank’s chief executive officer
Alejandro Osorio, new country head of Grab Thailand
President Roongrote Rangsiyopash, centre
SootinClaimon.Com 