The Stock Exchange of Thailand (SET) and Securities and Exchange Commission (SEC) are working on improving regulations so foreign companies can be listed in the Thai stock market.
SET president Pakorn Peetathawatchai expects foreign holding companies, infrastructure funds and Real Estate Investment Trusts (REITs) to be able to raise funds both in primary and secondary markets by next year.
He said SET also plans to set up a third stock market to help start-ups, small and medium enterprises (SMEs) and social enterprises to raise funds. This third stock market should be ready to go into operation by the second or third quarter next year.
“Currently we have SET and the Market for Alternative Investment, but we don’t have any foreign companies listed, so we need to help bring foreign firms into the Thai stock market,” he said.
“Meanwhile, we are working on setting up a new stock market to help start-ups and SMEs raise funds, but it is not easy because small companies have many risks.”
Pakorn added that the SET, SEC and the Bank of Thailand have established the Thai Institute of Directors to help listed companies report their information effectively, to ensure proper corporate governance and corporate social responsibility.
An expert at Capital Nomura Securities (CNS) expects foreign investors to sell approximately US$114 million of Thai stocks after MSCI reduced its investment in Thai stocks to 1.87 per cent from 1.91 per cent, which will be effective on November 30.
CNS director of investment research and its investor services division Koraphat Vorachet said MSCI had reduced investment in PTT, CP All, Airports of Thailand (AOT), Siam Cement (SCC), Advanced Info Service (Advanc), Bangkok Dusit Medical Services (BDMS), PTT Exploration and Production (PTTEP) and Intouch Holdings (Intuch), but increased its investment in Asset World Corporation (AWC).
Koraphat expected foreign investors to buy Sri Trang Gloves (STGT) and Delta Electronics (Delta) shares amounting to $43 million and $75 million, respectively, that were listed in the MSCI Global Standard Index and sell TMB Bank (TMB) and IRPC shares amounting to $38 million and $42 million, respectively, that were delisted from the index.
MSCI meanwhile moved IRPC from its Global Standard Index to its Global Small Cap Index.
“We expect the Stock Exchange of Thailand (SET) to face correction for one week before MSCI’s move takes effect on November 30 this year. Therefore, investors should avoid stocks that MSCI has reduced investment in as well as those that were delisted from MSCI’s indices. Meanwhile, investors should speculate on stocks that MSCI has increased investment in,” Koraphat advised.
He said the SET faces volatility despite the inflow of foreign funds as domestic institutional investors were adjusting their portfolios to suit the situation.
The SET Index closed at 1,345.34 on Wednesday, up 4.10 points, or 0.31 per cent. Total transactions amounted to Bt117.15 billion, with an index high of 1,356.83 points and a low of 1,331.39.
Foreign investors and securities accounts made net buys of Bt7.23 billion and Bt771 million, respectively, while institutional and individual investors made net sells of Bt4.22 billion and Bt3.78 billion, respectively.
Foreign investors have bought back Thai stocks totalling Bt28.43 billion for three consecutive days.
GSB handed triple-A credit status for fifth year in a row
Nov 11. 2020
By The Nation
The Government Savings Bank (GSB) has been rated “AAA” by TRIS Rating for the fifth year running. The country’s biggest state-owned lender was handed the highest credit status along with a “stable” outlook in Tris Rating’s latest report.
The rating reflects GSB’s legal status as a specialised financial institution (SFI) which is integrally linked with the government and plays a critical public policy role.
Eastern Power Group (EP) has bought back 353,800 shares worth over Bt1.38 million so far this month.
According to the Securities and Exchange Commission (SEC), EP chairman Yuth Chinsupakul bought back 123,800 shares worth over Bt480,000 at Bt3.88 per share on November 2, 30,000 shares worth over Bt110,000 (Bt3.93 per share) on November 3, and 200,000 shares worth over Bt790,000 (Bt3.95) on November 9.
EP’s share price in October rose by 3.19 per cent to Bt3.88 and has climbed another 0.5 per cent so far in November to Bt3.92.
In September, EP’s board of directors approved selling its stake in three power plants in Japan for Bt1.99 billion to support business expansion and repay loans.
EP registered profits of Bt132.45 million for the past six months, down Bt39.34 million or 22.9 per cent from the same period last year, while its revenue dropped to Bt707.30 million, down 0.5 per cent year on year.
The company’s revenue from its publishing business dropped by Bt72.74 million or 21.95 per cent year on year, but revenue from electricity sales rose by Bt69.73 million or 25.53 per cent from its Kurihara 2 power plant in Japan, which started selling electricity on November 25, 2019.
The Stock Exchange of Thailand (SET) Index fell by 8.37 points, or 0.62 per cent, to 1,336.97 in the morning session on Thursday.
An analyst at Krungsri Securities expected the day’s index to fluctuate between 1,335 points and 1,357 despite the positive news that a Covid-19 vaccine was almost ready, which helped attract more foreign funds into the market.
“Uncertainty over the US curfew to contain the spread of Covid-19 and signs of overbought stocks would pressure the index,” he said.
He added that foreign stock and oil markets are currently facing correction after rising sharply in previous days as investors were waiting for fresh positive sentiment.
He recommended investors buy STGT, STA, EPG, Com7, Synex, Hana and TVO, whose third-quarter performance is expected to improve.
The SET Index closed at 1,345.34 on Wednesday, up 4.10 points, or 0.31 per cent. Total transactions amounted to Bt117.15 billion, with an index high of 1,356.83 points and a low of 1,331.39.
The price of gold dropped by another Bt150 per baht weight in morning trade on Thursday, the Gold Traders Association reported.
As of 9.27am, the buying price of a gold bar was Bt26,700 per baht weight and selling price Bt26,800, while gold ornaments cost Bt26,226.80 and Bt27,300, respectively.
At close on Wednesday, the buying price of a gold bar was Bt26,850 per baht weight and selling price Bt26,950, while gold ornaments cost Bt26,363.24 and Bt27,450, respectively.
The spot gold price moved to US$1,869 (Bt56,487) per ounce in the morning after the price dropped by $14.80 to $1,861.60 per ounce at Wednesday’s close due to a strengthening dollar and mass sell-offs of the safe-haven asset amid the rise in the US stock market, especially the Nasdaq Index, which increased by more than 2 per cent.
The Hong Kong gold price meanwhile dropped by HK$100 to $17,260 (Bt67,283) per tael this morning, the Chinese Gold and Silver Exchange Society reported.
By SyndBloomberg · Rita Nazareth, Claire Ballentine · BUSINESS, US-GLOBAL-MARKETS
ication Washington Post,
Stocks climbed as giant tech companies rallied in a shift back to the safety trade that has powered this year’s gains amid speculation the economic recovery will be slow with a virus resurgence.
The S&P 500 rose to the highest since Sept. 2, while the Nasdaq 100 jumped more than 2%. Heavyweights Apple Inc. and Amazon.com Inc. surged alongside some stay-at-home shares that were hit hard by this week’s sell-off such as Zoom Video Communications Inc. The Dow Jones industrial average underperformed, and banks slumped. The Russell 2000 Index of smaller stocks halted a two-day rally which was driven by expectations that a return to normal would be on the horizon after positive vaccine developments. Treasury futures were little changed, with the cash market closed for a U.S. holiday. The dollar advanced.
With fears of further economic pain growing amid the threat of tougher measures to contain the virus, traders piled back into companies with solid balance sheets and a suite of products that benefit from social distancing. New York City’s average of people testing positive for covid-19 is approaching the safety threshold that would force a shutdown of schools, with the mayor citing one “last chance” to halt a second wave. The pandemic has killed more than 1.2 million people around the world since late January and sent the economy into the worst recession in living memory.
“We are still going to be in for a slower economic growth environment,” said Leo Grohowski, chief investment officer at BNY Mellon Wealth Management. “We could see some reopening rollback as the Covid case counts continue to climb.”
While the recent rotation into cheaper value stocks slowed down on Wednesday, JPMorgan Chase & Co. strategists said the shift into those companies can endure much longer after years of lagging behind growth shares. There’s still room for further normalization as a large part of the initial rally was driven by the short-covering of short-momentum strategies — which buy the past year’s winners and sell its losers, according to them.
“Our equity strategy team believes that we are on the cusp of a sustained rally in value comparable to what we saw in 2016-2017,” said strategists including Davide Silvestrini and Marko Kolanovic. “This rotation has room to continue much further given the material underperformance we have witnessed in recent years.”
Elsewhere, talks between OPEC and its allies are zeroing in on a delay to next year’s planned oil-output increase of three to six months, according to several delegates. Saudi Arabia and Russia, leaders of the 23-nation coalition, have already indicated publicly that they are thinking twice about easing production cuts in January as the resurgent pandemic hits fuel demand.
These are some of the main moves in markets:
Stocks
– The S&P 500 gained 0.8% as of 4 p.m. EST.
– The Stoxx Europe 600 Index climbed 1.1%.
– The MSCI Asia Pacific Index advanced 0.6%.
Currencies
– The Bloomberg Dollar Spot Index climbed 0.2%.
– The euro decreased 0.4% to $1.1771.
– The Japanese yen depreciated 0.1% to 105.44 per dollar.
Bonds
– Germany’s 10-year yield fell two basis points to -0.51%.
– Britain’s 10-year yield rose one basis point to 0.413%.
Commodities
– The Bloomberg Commodity Index advanced 0.1%.
– West Texas Intermediate crude advanced 0.1% to $41.41 a barrel.
The Bank of Thailand (BOT) wants to see commercial banks boost their digital services in order to match the increasing demand for online transactions, said Siritida Panomwon Na Ayudhya, the central bank’s assistant governor, Payment Systems Policy and Financial Technology Group.
She added that the central bank had witnessed a decline in errors and downtime of commercial banks’ digital platforms in the third quarter as their digital services improve.
The BOT and commercial banks are closely monitoring digital service transaction traffic so they can respond quickly to any problems that may arise, she added.
PTT has instructed its US arm to review plans for a chemical plant in Ohio, citing a change in investment conditions.
The company said Joe Biden’s victory in the US presidential election would result in a change in American trade and investment policies. Meanwhile the Covid-19 pandemic was also affecting consumer behaviour, it added.
The move comes after PTT Global Chemical (PTTGC)’s plan to build a Bt5.7-billion petrochemical-to-plastics plant in Ohio hit a snag in July when joint partner Daelim Industrial of South Korea pulled out.
“The PTTGC Petrochemical Complex has to be reviewed as business conditions are completely changed, said Auttapol Rerkpiboon, president and CEO of PTT’s oil and gas enterprise, on Wednesday.
The review should be complete by the middle of next year, he added.
PTTGC is currently studying plans for US-based petrochemical complexes worth more than Bt200 billion and has postponed its final investment decision from the third quarter this year to next year.
The company is eyeing expansion in the US, which has the world’s lowest petrochemical production costs coupled with rising demand for polymers.
PTT said it remained committed to investing in the international trading business in the US, which can be managed in line with changing conditions.
The company has established PTT International Trading USA (PTTT USA) and has targeted US trade of 30,000 barrels per day.
Lagarde says next stimulus to rely on emergency QE, loans
EconNov 11. 2020Christine Lagarde, president of the European Central Bank, is seen on a TV screen speaking during a live stream video of the central bank’s virtual rate decision news conference in Frankfurt, Germany, on Oct. 29, 2020.. MUST CREDTI: Bloomberg photo by Chris Ratcliffe.
By Syndication Washington Post, Bloomberg · Carolynn Look, Piotr Skolimowski · BUSINESS, US-GLOBAL-MARKETS European Central Bank President Christine Lagarde said policymakers will focus on emergency bond purchases and long-term loans for their next wave of stimulus, effectively ruling out interest-rate cuts as a way to aid the economy.
“While all options are on the table, the pandemic emergency purchase program and targeted longer-term refinancing operations have proven their effectiveness,” she said. “They are therefore likely to remain the main tools for adjusting our monetary policy.”
The Stoxx Europe 600 extended gains after Lagarde’s comments, and Italian 10-year bond yields extended their decline, signaling optimism that the ECB would increase asset purchases.
The euro area’s economic outlook has darkened considerably in recent weeks as record-breaking coronavirus cases across the region have forced governments to reintroduce restrictions on activity. A stronger-than-expected rebound over the summer months has given way to a possible double-dip recession, and Lagarde warned that any future recovery is likely to be unsteady.
The ECB is widely predicted to increase and extend its 1.35 trillion-euro ($1.6 trillion) pandemic bond-buying program at its meeting in December, and many economists also expect it to make changes to its ultra-cheap credit for banks. Lagarde stressed that the duration of policy support matters as well as the level of financing conditions.
That backs the view of economists that the central bank is likely to stretch emergency purchases by at least six months to the end of 2021, and implement more of its targeted long-term bank loans or lengthen their duration.
The ECB hasn’t lowered its deposit rate, currently at -0.5%, at all during this crisis. Officials are concerned about the adverse consequences of doing so, which would squeeze bank profitability and could eventually deter lending.
Still, cuts aren’t completely off the table. ECB research published this week showed that the deposit rate could fall as low as -1% before it becomes more harmful than beneficial.
“While the latest news on a vaccine looks encouraging, we could still face recurring cycles of accelerating viral spread and tightening restrictions until widespread immunity is achieved,” she said. “The recovery may not be linear, but rather unsteady, stop-start and contingent on the pace of vaccine roll-out.”
Lagarde’s remarks formed part of the ECB’s annual forum, normally held in the Portuguese resort of Sintra and traditionally a venue for strong policy messages from her predecessor Mario Draghi.
“The second wave of covid-19 presents new challenges and risks, but the blueprint for managing it is the same,” Lagarde added. “The ECB was there for the first wave and we will be there for the second wave.”
Christine Lagarde, president of the European Central Bank, is seen on a TV screen speaking during a live stream video of the central bank’s virtual rate decision news conference in Frankfurt, Germany, on Oct. 29, 2020.. MUST CREDTI: Bloomberg photo by Chris Ratcliffe. 
