Investors have encouraged listed companies to adjust their businesses for the “new normal” era, the Stock Exchange of Thailand (SET) said.
The message was delivered by many of the 10,000 domestic and foreign investors participating in the online “Thailand Focus 2020” event on August 26, SET president Pakorn Peetathawatchai said.
“Most investors were interested in listed companies’ business directions, especially business restructuring to meet consumers’ needs in the new normal era, cost and investment management for business expansion and acquisition, and the Covid-19 impact on companies profitability,” he said.
“Meanwhile, most investors were more concerned about international factors than domestic factors, including economic policy and market conditions.”
Many were interested in industries showing significant recovery, such as packaging, agriculture products, electronic products and construction materials, Pakorn said.
Thai listed companies had adjusted in four ways since the Covid-19 outbreak, he added. They had improved products in line with consumers’ needs in the “new normal” era, changed workflows and applied technologies, developed employees’ potential, and managed liquidity to secure firm business operations.
The SET’s strategy for rest of this year would focus on accelerating operations and increasing investment products in various currencies, such as debt instruments and mutual funds, he said.
Pakorn predicted that industries with an important role in the new normal era , such as food delivery, logistics, and tourism, would perform well in the SET.
“These businesses have changed, especially the service industry where market capitalisation has increased up to 30 per cent,” he added.
The SET is currently developing a platform for small and medium entrepreneurs (SMEs) and start-ups to seek funding sources, said Manpong Senanarong, senior executive vice president at the exchange.
“We expect this platform to be ready for use in the middle of next year,” he said. “Currently, we are talking with financial institutions and considering companies that have the potential to participate in this project.”
Top construction firm, CH Karnchang has bought back Bt674.40 million worth of shares at the average cost of Bt18.7 per share for financial management.
The company’s board of directors had initially approved the buying back of no more than 169,389,000 shares or 10 per cent of all sold shares with a maximum credit limit of Bt3 billion.
As of September 1, the company had bought back 36 million shares, accounting for 2.13 per cent of all sold shares.
The board of directors will consider the sale of repurchased shares under this project later.
According to related regulations, companies can sell the shares after six months of repurchasing them, but no more than three years. If the company cannot sell all repurchased shares in time, the unsold ones become invalid.
The Stock Exchange of Thailand (SET) Index closed at 1,315.88 today (September 2), up 10.31 points or 0.79 per cent. The volume of total transactions stood at Bt43.682 billion with an index high of 1,316.08 and a low of 1,301.78.
During the morning session, an analyst at Krungsri Securities said he expected the index to rebound between 1,310 and 1,315 points before falling in response to a rise in the US manufacturing Purchasing Managers’ Index (PMI) in August.
“The US PMI in August rose to 53.1, the highest in a year,” the analyst said. “The market also gained from Washington’s move to consider new Covid-19 relief measures.”
However, he warned investors to be aware of market volatility since foreign investors’ funds are continuing to flow out.
The top 10 stocks with the highest trade value today were SCC, MINT, CPALL, BAM, KBANK, PTT, CPF, STA, PTTEP and PTTGC.
As of 4.30pm, the price of oil rose by US$0.18 or 0.42 per cent to $42.94 per barrel, while gold dropped by $0.70 or 0.04 per cent, to $1,978.20 per ounce.
Other Asian indices were mixed:
Japan’s Nikkei Index closed at 23,247.15, up 109.08 points or 0.47 per cent.
China’s Shanghai SE Composite Index closed at 3,404.80, down 5.80 points or 0.17 per cent, while Shenzhen SE Component Index closed at 13,887.42, up 37.77 points or 0.27 per cent.
Hong Kong’s Hang Seng Index closed at 25,120.09, down 64.76 points or 0.26 per cent.
South Korea’s KOSPI Index closed at 2,364.37, up 14.82 points or 0.63 per cent.
Taiwan’s TAIEX Index closed at 12,699.50, down 3.78 points or 0.030 per cent.
The government’s Centre for Economic Situation Administration (Cesa) resolved to approve new economic stimulus measures in a meeting chaired by the prime minister and attended by Danucha Pichayanan, deputy secretary-general of the National Economic and Social Development Council.
The new measures, proposed by the Finance Ministry, aim to reduce the cost of living, promote consumption and help small businesses survive.
Under this scheme, the government will provide a 50 per cent subsidy for products purchased from participating retailers and street vendors, but no more than Bt3,000 per person. Those eligible for this subsidy must be at least 18 years old.
The scheme aims to provide subsidies to 15 million persons and expects 80,000 retailers and street vendors to participate.
The Finance Ministry has been instructed to come up with project details to present to Cesa, so the scheme can be implemented by October.
Meanwhile, the centre has also approved additional domestic stimulus measures under the Rao Tiew Duay Kan (We Travel Together) scheme, but adding two additional measures:
• Three new offerings for registered users: 40 per cent discount on accommodation for 10 nights per person, food coupons worth Bt900 per person on Mondays to Thursdays, and worth Bt600 on Fridays to Sundays, and a Bt2,000 refund on airline tickets as of September 1.
• An agreement in principle that civil servants and state-enterprise employees can take two days off after registering and using Rao Tiew Duay Kan packages promoting travel on weekdays. These two days off will not be considered leave.
Labour Ministry moves to create jobs for new graduates
The government’s Centre for Economic Situation Administration (CESA) also has approved the Labour Ministry’s move to jobs for 260,000 new graduates amid the Covid-19 crisis.
“The new graduates will be split into three groups when employed by participating businesses. Holders of bachelor’s degrees will be paid Bt15,000 per month, holders of high-vocational certificates will get Bt11,500 per month, while vocational certificate holders will get Bt9,400 per month,” he said.
“The government will cover 50 per cent of their salaries, or a maximum of Bt7,500 per person per month. Businesses wanting to join the programme must be part of the social security scheme and should not have laid off more than 15 per cent of their employees over the past year.
“This scheme will run from October 1 until September 30, 2021. In case a new employee quits before the 12 months are up, the employer can replace the worker and continue receiving the subsidy,” he added.
“Only Thai nationals, aged no more than 25, and have graduated in 2019 or 2020 will be eligible for this scheme.”
The price of gold is likely to go beyond Bt30,000 per baht weight again now that the baht has weakened due to the political situation, experts said on Wednesday (September 2).
Nuttapong Hirunyasiri, managing director of MTS Gold Group, said the price of gold in the next two months will possibly rise further given its support and resistance lines at US$1,975 and $2,000 per ounce, respectively.
In Thailand, the support and resistance lines are at Bt28,500 and Bt30,000 per baht weight, he said, adding that the precious metal could hit a new high.
“We advise investors to follow US employment data on Friday, as the price of gold will rise if the numbers are worse than expected,” he said.
“Domestically, we advise following the direction of the baht. The currency will not strengthen too much because the economy is suffering from the Covid-19 fallout and the political situation.”
However, he said, the baht may strengthen and pull down the price of gold once foreign investments flow into the country in response to efficient fiscal policies and improvements in other Asian economies, especially China.
“Investors should evaluate the situation closely every month. We also advise that gold be bought as a long-term investment, because the price should not hit its lowest point in the near future,” he added.
Jitti Tangsitpakdee, chairman of the Gold Traders Association, said he doesn’t think the price of gold will rise much in the short term because no major tragedies have taken place.
“However, we need to wait for the US employment data to see if it is worse than the market expected,” he said. “The price will be under pressure because global funds have plenty of gold for sale and they may decide to sell off to make profits.”
He said he expects the price of gold to remain at Bt29,000 per baht weight, but advised investors to monitor the situation closely.
China’s Great Wall Motors is in discussion with the Eastern Economic Corridor (EEC) authorities about the process of taking over the General Motors (GM) production facilities in Rayong and starting automobile production by early next year.
Great Wall is also discussing investment plans with the Board of Investment and related benefits.
Zhang Jia Ming, president of Great Wall Motors’ Asean operations, told the EEC board that his company was planning to produce several models in Thailand, including 100-per-cent electric vehicles, in line with the government’s policy to focus on the automotive industry – one of the 12 target industries in the EEC.
“The company is currently in talks with GM about its actions for the Rayong factor, which should be completed this year and should start production by early next year. The aim is to make Thailand a production base for Great Wall Motors in Asean,” Zhang said.
He added that Great Wall Motors will try to use as many domestic parts as possible and was ready to make deals with domestic electric car parts manufacturers.
It is also planning to have a subsidiary set up a manufacturing plant in Thailand to produce other parts, such as electric batteries and parts for electric vehicles. Great Wall Motors will also launch a training centre to support the production of new vehicles.
Visa, a world leader in digital payments, said on Wednesday (September 2) that nearly nine in 10 Thai consumers are interested in transacting through digital platforms.
The Visa Consumer Payment Attitudes Study tracked payment habits, attitudes and explored emerging topics related to payments across Southeast Asia including Thailand. The study also found that four out of five Thai consumers (80 per cent) were interested in making payments with biometric authentication.
Suripong Tantiyanon, country manager for Visa Thailand, said: “Thai consumers are becoming tech savvy, quickly adopting digital behaviour in their daily lives. The results of our recent study reaffirms our observation. We are encouraged to see Thai consumers adopting digital financial services, which would lend a hand in building a strong foundation for the country’s digital economy.”
Based on the findings, four in five (81 per cent) are aware of the concept of digital banking –online or mobile services that allow users to access bank accounts, transfer money, pay bills etc without having to visit a bank or use cash.
The respondents cited convenience as their top motivation in adopting digital banking (61 per cent), followed by not having to wait in line at banks (60 per cent) and finding it to be a faster way of banking (57 per cent).
The top five services Thai consumers are looking to receive from digital banks are deposits and withdrawals (72 per cent), paying bills (70 per cent), transferring money to family and friends (69 per cent), payment at retail locations (67 per cent) and investments (58 per cent).
The study also gauged Thai consumers’ interest in the emerging technology of biometric payments and found that four out of five (80 per cent) Thai consumers are interested in this payment method. More specifically, those of Gen-Y (25-39 years old) exhibited higher interest than Gen-X (40-54 years old) in biometric authentication (85 per cent vs 76 per cent).
The top drivers of interest in biometric payments are speed and convenience (53 per cent), followed by the convenience of not having to carry card or cash (50 per cent) and security (48 per cent).
Additionally, respondents also cited paying by finger scan as their most preferred biometric payment method (80 per cent), whilst consumers also feel comfortable using retina scan to make payments while travelling overseas (52 per cent) or for education (42 per cent) and health & fitness (40 per cent).
The study was conducted by ENGINE insights on behalf of Visa in August last year in Singapore, Indonesia, Malaysia, Thailand, Vietnam, the Philippines and Myanmar. Total sample size was 5,102, including 505 working adults in Thailand aged 18-65, with a minimum monthly income of Bt15,000.
By The Washington Post · Hannah Denham · NATIONAL, BUSINESS, COURTSLAW, RACE, HISTORY, US-GLOBAL-MARKETS
More than four dozen former franchise owners, all Black, have accused McDonald’s of “systematic and covert racial discrimination” and of setting them up to fail, despite the company’s public commitment to racial equality.
In a federal lawsuit filed late Monday, the 52 plaintiffs allege the company intentionally placed their restaurants in economically depressed and high-crime locations that had higher operating costs, frequent employee turnover and lower sales. The conditions positioned them for lower profits and failure – a “financial suicide mission” – the lawsuit said.
The plaintiffs, whose franchises date to 1981 and who left the company within the past decade, also allege that McDonald’s retaliated against Black franchisees who rejected being placed in high-crime communities; denied them financial support and assistance often afforded to White franchise owners; unfairly graded Black-owned operations, which led to poor internal reviews and pushed out those franchisees; and misled Black entrepreneurs into purchasing franchises in challenging locations.
McDonald’s denied the allegations, saying they “fly in the face of everything we stand for as an organization and as a partner to communities and small business owners around the world.”
“Not only do we categorically deny the allegations that these franchisees were unable to succeed because of any form of discrimination by McDonald’s, we are confident that the facts will show how committed we are to the diversity and equal opportunity of the McDonald’s System, including across our franchisees, suppliers and employees,” the company said in an emailed statement.
McDonald’s is among the corporate giants that pledged to play a bigger role in combating systemic racism following the death of George Floyd, a Black man who was killed May 25 in police custody in Minneapolis. The ensuing protests galvanized a national moment amid a pandemic that has taken an outsize toll on Black Americans. At the end of July, McDonald’s updated its corporate values with a statement of commitment to diversity and inclusion, including plans to attract and recruit “diverse franchisees,” without defining the terms of diversity.
James Ferraro, the Florida-based lawyer representing the plaintiffs, said the “notion that McDonald’s is a friend of the Black entrepreneur is complete fiction,” according to a news release. “McDonald’s has been hemorrhaging Black franchisees for decades due to blatant and implicit racial discrimination. The company will now be held accountable.”
The complaint alleges the plaintiffs averaged $2 million a year in sales – $700,000 less than the company’s national average from 2011 to 2016 and $900,000 less than the 2019 average. That led to an exodus of Black franchisees, the suit says, from 400 in 1998 to less than 200 today, even as the number of McDonald’s franchises doubled.
The plaintiffs are seeking compensatory damages from $4 million to $5 million per store for the more than 200 locations operated by the former franchisees. The complaint, which seeks a jury trial, was filed in the U.S. District Court for the Northern District of Illinois Eastern Division, where McDonald’s is based. The plaintiffs operated franchises in Alabama, Florida, Georgia, Illinois, Indiana, Iowa, Michigan, Mississippi, Missouri, Nevada, New Jersey, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas and Virginia, according to the complaint.
“The world will soon see how these 52 people of color risked everything on the Golden Arches only to be kept down, marginalized and driven to ruin,” Ferraro said. “Black lives matter on the streets, in our communities and they matter in Corporate America.”
McDonald’s said in its statement that it places Black franchisees in all types of communities and denied allegations that it forces franchise owners into underperforming markets or that franchisees do not have a say in what locations they purchase. The company also contends it treats Black franchisees no differently from other franchisees and does not offer less financial support.
In a video sent to McDonald’s employees and suppliers, chief executive Chris Kempczinski said the company focuses on recruiting franchisees and suppliers from diverse backgrounds.
“Based upon our review, we disagree with the claims in this lawsuit and we intend to strongly defend against it,” Kempczinski said. “But I think it’s important in moments like this to remind ourselves what we do stand for. And as CEO, that’s a tone I intend to continuously set from the top. McDonald’s stands for diversity, equity and inclusion. I’m proud of the work we’ve done as a company to foster entrepreneurship, economic growth and mobility.”
McDonald’s also is in the midst of a legal fight with its former chief executive, Steve Easterbrook, who was fired in November for violating corporate policy that forbids managers from having relationships with subordinates. Last month, the company filed a lawsuit to recover Easterbrook’s multimillion-dollar exit package, alleging that he lied about having multiple affairs with employees and covered up the evidence, according to a regulatory filing.
The Shell Company of Thailand Ltd is still focused on investing in Thailand and other Asean countries, according to the company’s country chairman Panun Prachuabmoh.
He added that the company has continued to allocate budget for investment in Thailand and plans to open another 30 petrol stations per year in the Kingdom. Shell Thailand currently has 639 stations across the country.
It will also continue to expand its non-oil business, he added.
Shell will also continue installing solar rooftops at its stations to cover another 100 stations next year and more after that.
The resignation of Finance Minister Predee Daochai has caused uncertainty among investors, UOB Kay Hian strategist Kitpon Pripisankit said.
He said the situation has caused uncertainty among investors over treasury reserves, Gross Domestic Product growth and the roll-out of economic stimulus measures after the Bank of Thailand’s measures expired.
“We believe this is a good decision because the finance minister should receive support to move on policy, but the conflict at a Cabinet meeting showed that outsiders do not have any political power,” Kitpon said.
“With Predee tendering his resignation, the roll-out of economic stimulus measures may not benefit the country much or may be delayed, causing the country’s economy to slow during the rest of the year,” he stated.
Kitpon also said the index would not fall sharply as liquidity is still at a high level, but stocks would come under pressure from a slow economic recovery as most listed companies’ performance still rely on economic activities, with the exception being technology stocks, which have been able to escape the impact of the economic slowdown.
“Investors should pay attention to stocks that have performed well during the Covid-19 pandemic, such as those to do with electronic parts, agriculture, food, and insurance, and stocks whose performance will improve even though the stock market is still unable to rise to the 1,500-point level as seen before the pandemic emerged,” he added.
Country chairman Panun Prachuabmoh
