Skytrain operator BTS Group Holdings will conduct a feasibility study with King Mongkut’s Institute of Technology Ladkrabang on an electric tram-bus service to link its main campus with the transport network. Also signing the memorandum of understanding (MoU) for the study today was Bangkok Smartcard System.
The collaboration is seeking to forge a mass transit connection from the campus to the Airport Rail Link’s Lat Krabang Station, explained BTS Group Holdings chief executive officer Kavin Kanjanapas. The campus is located just to the east of Suvarnabhumi Airport.
The partnership will also pave the way for knowledge exchange between BTS and the institute.
BTS Group Holdings executive director Surapong Laoha-Unya said two possible routes were being studied – Hua Takhe to Lat Krabang Station (4 kilometres) and a link directly from the campus to Lat Krabang Station.
Each tram-bus will have three carriages and capacity for 250 passengers. The study will take two to three years to complete.
The price of Carabao Group (CBG) shares rose more than 5 per cent in morning trading today (August 10) as the energy drink company’s second-quarter profit increased by 20.1 per cent year on year, driven by a 27 per cent rise in foreign income.
CBG’s share price hit a high of Bt134.50 in the morning session, up 6.76 per cent from the previous close, before falling to Bt131.
CBG’s shares gained positive sentiment from a strong second-quarter performance that generated revenue of Bt4.508 billion, up 20.1 per cent year on year. Income from the company’s products rose by 13.6 per cent year on year.
On the domestic front, CBG’s income dropped slightly by 1.7 per cent as sales in the energy drink market fell 13.4 per cent.
However, CBG’s foreign sales rose by 27 per cent to Bt2.219 billion, 81 per cent or Bt1.8 billion of which came from Cambodia, Laos, Myanmar and Vietnam (CLMV) and 7 per cent from China. Increasing sales in CLMV countries, especially Myanmar, boosted the company’s profit to Bt890 million, up 69.7 per cent year on year.
A stock analyst at Yuanta Securities expected CBG’s net profit to hit a new high in the remaining quarters of this year as the income from sales of its C+Lock drink and exports to CLMV countries were not included in the company’s forecast.
“In this year’s fourth quarter, production at CBG’s bottling plants will increase by 40 per cent to 4.2 million bottles per day, while production at its canning plants will increase by 30 per cent to 5.7 million cans per day. This will enable the company to boost income from foreign countries,” the analyst said. “Meanwhile, CBG’s paper packaging costs will fall due to the company’s new packaging factory.”
The analyst added that his securities company has increased CBG’s stock target price to Bt130-Bt140 per share, advising investors to buy this stock as the upside gain was around 3 to 10 per cent.
We expect the company’s stocks to gain positive sentiment from its positive performance,” the analyst added. “Investors will sell stocks to take profit when the price moves to around Bt135 per share,” he forecast.
The Stock Exchange of Thailand (SET) Index rose by 11.74 points, or 0.89 per cent, to 1,333.75 on Tuesday morning (August 11).
A stock analyst at Krungsri Securities expected the index to rise between 1,330 and 1,335, before falling, in response to hopes of a $1-trillion US economic stimulus package as investors expected US lawmakers to reach an agreement by this week.
“Also, the market gained positive sentiment from the rising oil price as the price climbed to over US$42 per barrel again,” he said.
However, the analyst said the index would be under pressure from the escalating US-China conflict after China imposed sanctions on US lawmakers in response to the US imposition of sanctions on 11 Hong Kong and Chinese officials.
“Meanwhile, we expect investors to delay trading to follow US-China trade negotiations on August 15 to assess the progress of the first phase of the trade agreement, while the SET will be closed on Wednesday for Mother’s Day,” he said.
The SET Index dropped 2.39 points, or 0.18 per cent, closing at 1,322.01 on Monday. The total transactions amounted to Bt37.417 billion with an index high of 1,330.17 and a low of 1,321.90.
He recommended that investors buy:
▪︎ Stocks whose second-quarter performance will improve, such as SPRC, BGRIM, CPF, TU, STA, STGT, AP, PRM, PTL, AJ, JMT, CHAYO, PTG and BCH.
▪︎ Electronic stocks that benefit from work from home, 5G trends and weaken baht, such as KCE, DELTA, HANA and SVI.
The price of gold dropped by Bt200 per baht weight in the morning trade on Tuesday (August 11), the Gold Traders Association reported.
As of 9.30am, the buying price of a gold bar was Bt29,600 per baht weight and selling price Bt29,700, while gold ornaments cost Bt29,061.72 and Bt30,200, respectively.
At close on Monday (August 10), the buying price of a gold bar was Bt29,800 per baht weight and selling price Bt29,900, while gold ornaments cost Bt29,258.80 and Bt30,400, respectively.
The Comex (Commodity Exchange) gold price to be delivered in December rose by US$11.7 or 0.58 per cent to $2,039.7 (Bt63,475.84) per ounce at yesterday’s close.
Gold price, however, closed positive due to investors buying gold as a safe-haven asset due to uncertainty following the US-China tensions.
Meanwhile, gold contracts gained positive sentiment from hopes of the US Congress and the White House reaching an agreement on a US$1-trillion stimulus package within this week.
The Chinese Gold and Silver Exchange Society has revealed that the Hong Kong gold price dropped by HK$140, opening at $18,650 (Bt74,893.72) per tael this morning.
Regulator anxious to hear new energy minister’s plans
EconAug 11. 2020Energy Minister Supattanapong Punmeechaow.
By The Nation
The Energy Regulatory Commission said it will meet with new Energy Minister Supattanapong Punmeechaow soon to learn about his plans and policies.
The commission was anxious to hear Supattanapong’s plans for the policies of his predecessor, notably liberalisation of the natural gas market and the programme to construct grassroots power plants, said commission chairman Samerjai Suksumek. Also of interest is whether the new minister will revise the power development plan.
The commission recently awarded licences to import liquefied natural gas (LNG) to three private firms – Gulf Energy Development, Hin Kong Power Holding Co (HKH) and B Grimm LNG. The firms are now waiting for the National Energy Policy Committee to give the go-ahead to import LNG.
By Syndication Washington Post, Bloomberg · Andres Guerra Luz, Alex Longley · BUSINESS, US-GLOBAL-MARKETS
Oil surged as signals from Washington pointed to the growing likelihood for an economic stimulus deal that could boost consumption.
Treasury Secretary Steven Mnuchin said in a CNBC interview that he thinks Democrats want to compromise, making a deal on the next pandemic relief package possible. Over the weekend, President Donald Trump signed executive orders diverting disaster money to boost unemployment insurance, and suspending a collection of payroll taxes for some workers. Further boosting sentiment, crude demand in Asia is almost back to pre-virus levels, Saudi Aramco Chief Executive Officer Amin Nasser said Sunday.
“The big thing today is progress on the executive orders,” said Phil Flynn, senior market analyst at Price Futures Group Inc. “At least there will be more money in the economy from that and that should give us a little bit of a boost.”
West Texas Intermediate for September delivery rose 94 cents to $42.16 a barrel as of 10:16 a.m. in New York. Brent for October settlement climbed 69 cents to $45.09 a barrel.
Oil is on the precipice of breaking through the top end of the range where it’s been stalling for months, but remains weighed down by the coronavirus pandemic flareup that’s casting doubt on a sustained economic rebound. Adding to the price pressure, the OPEC+ alliance is unleashing crude back onto the market this month following historic output cuts.
“For now, oil continues to fluctuate in a narrow band,” searching for a catalyst to break out, said Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas SA. “It looks like oil is in for another week of trading sideways.”
Yet, in a sign of recovering consumption, the quantity of commercial flights around the world rose almost 6% in the seven days to Sunday, according to FlightRadar24 data. The average number of 67,000 planes in the sky was still far below the more than 100,000 pre-Covid.
“We are seeing a partial recovery in the energy market as countries around the world take steps to ease restrictions and reboot their economies,” Nasser said.
Still, there are lingering concerns over the pace of the recovery. The 3-2-1 refining margin for combined gasoline and diesel against U.S. WTI — a rough profit gauge for processing a barrel of crude — was at its weakest level since June on Friday before rebounding slightly Monday.
The Stock Exchange of Thailand (SET) Index dropped 2.39 points or 0.18 per cent, closing at 1,322.01 today (August 10). The total transactions tallied at Bt37.417 billion with an index high of 1,330.17 and a low of 1,321.90.
During the morning session, an analyst from Krungsri Securities said he expected the index to fluctuate between 1,315 and 1,335, despite the market gaining positive sentiment from strong US economic data.
“In July, non-farming payroll in the US rose by 1.763 million positions, while its unemployment rate dropped to 10.2 per cent,” he said. “Investors also expect US lawmakers to reach an agreement soon on a $1-trillion stimulus package.”
However, the analyst said the US-China conflict, falling oil prices and mass sell-offs will pressure the index.
“The US-China conflict escalated recently when Washington banned China’s TikTok and WeChat applications, while the price of oil dropped due to uncertainty over decline in fuel demand as Covid-19 cases continue to rise,” he said.
The top 10 stocks with the highest trade value today were CBG, NER, STA, AOT, EA, PTT, STGT, UTP, CPF and ADVANC.
As of 4.30pm, the price of crude oil rose by $0.69 or 1.67 per cent to $41.91 per barrel, while gold rose by $15.40 or 0.76 per cent, to $2,043.40 per ounce.
Other Asian indices were mixed:
China’s Shanghai SE Composite Index closed at 3,379.25, up 25.22 points, or 0.75 per cent, while Shenzhen SE Component Index closed at 13,657.31, up 8.81 points, or 0.065 per cent.
Hong Kong’s Hang Seng Index closed at 24,377.43, down 154.19 points, or 0.63 per cent.
South Korea’s KOSPI Index closed at 2,386.38, up 34.71 points, or 1.48 per cent.
Taiwan’s TAIEX Index closed at 12,894, up 65.13 points, or 0.51 per cent.
Japan’s Nikkei Index was closed for Mountain Day public holiday on Monday (August 10).
Thailand’s 5G success lies in 3.5GHz band, says GSMA chief
EconAug 10. 2020John Giusti, chief regulatory officer for GSMA
By The Nation
The key to Thailand’s progress in digital technology is 5G in the 3.5GHz bandwidth, said John Giusti, chief regulatory officer for GSMA (GSM Association), an industry organisation that represents the interests of mobile network providers worldwide.
Thailand has the right aspirations and looks set to become a logistics and manufacturing powerhouse in the near future, he said, adding that world-class 5G services will help it achieve these goals, especially with the right number of new harmonised mobile spectra.
For Thailand, licensing 2.6GHz was a valuable first step, but spectrum in the popular 3.5GHz range is also necessary to offer full-fledged 5G services, Giusti said.
5G is growing rapidly and its initial performance in commercial networks is already showing the technology’s phenomenal potential. The Covid-19 pandemic has also shone a spotlight on the value of connectivity.
The potential for socio-economic growth powered by 5G-enhanced remote healthcare and education, industrial automation, next-generation transport and more fits perfectly with Thailand’s 4.0 aspirations.
However, to unlock the full potential of 5G services, governments need to make the right decisions. 5G’s speed, reach and quality depends on governments and regulators supporting timely access to the right amount and type of affordable spectra under the right conditions. The amount and price of spectra also will also directly impact the competitiveness of national economies and can slow or accelerate progress.
Giusti said to flourish, 5G needs spectrum across low- (sub-1GHz), mid- (2.6 and 3.5GHz) and high-bandwidths (mmWaves). Frequencies in the 3.5GHz range are being used for the first 5G implementation in many parts of the world. This range includes frequencies between 3.3-4.2GHz, and 80-100MHz of contiguous spectrum in the band, which is essential for each operator to maximise its capabilities at affordable prices in the first phase of roll out.
The mid-range spectrum has become the birthplace of 5G, and will continue being key for mobile operators in the long-term because it sits at a balancing point between coverage and capacity, and as such as provided the perfect environment for early 5G connectivity.
This initial focus, particularly on the 3.5GHz range, allows for the scale needed to bring down the cost of network equipment and mobile devices. Harmonisation has always played a key role in the success of mobile networks and 5G is no different. It will bring the benefits of 5G to as many Thais as possible.
Giusti said more spectra in the mid-band range is required for current and future demand increases. 5G pioneer South Korea, whose operators offer some of the fastest 5G speeds in the world, is already preparing for that fact.
Meanwhile, in Thailand, the Digital Economy and Society Ministry announced in June that it had decided to reallocate 3.7GHz to 4.0GHz spectra for 5G. It is currently used for satellite communication and the ministry is working towards having this valuable resource used more efficiently via mobile services.
Many countries in the region are also realising the importance of the 3.5GHz range, with Taiwan, New Zealand and Australia release portions of that band for 5G services.
Singapore has released the lower portion of the 3.5GHz band, while Malaysia has identified 3.5GHz as the best band for 5G and is currently working on the technical processes.
Thailand took an important step when it assigned 2.6GHz, but that is not enough to keep up with the Asean 5G race. The National Broadcasting and Telecommunication Commission (NBTC) is taking commendable steps as it prepares for the release of the 3.5GHz range for 5G, which will boost its competitiveness against any other country in the region.
Mobile operators, as well as the whole mobile ecosystem, have a long history of working with governments and regulators to address any potential challenges. For 5G, that includes coexistence with other technologies such as TV and satellite services. Overcoming these in the best way can impact the kind of 5G that can be offered and the socio-economic benefits.
At this critical juncture, the mobile industry stands ready to work with NBTC and the government to find ways of promptly releasing 80 to 100MHz of spectrum per operator in the 3.5GHz rage.
Thailand will be able to fully unlock the power of 5G to enable a variety of business-to-business services, such as industrial automation, autonomous drones and Internet of Things, thorough 5G network slicing, that will provide high-performance connectivity to drive innovation.
This will bring the quality of the full 5G experience to consumers and corporations in the short-term to further support Thailand 4.0 and the country’s aspirations, Giusti added.
The Trade Competition Commission has drafted rules to prevent online food delivery services exploiting restaurants, said commissioner Santichai Santawanpas.
The new food delivery service guidelines will be put to a public hearing soon.
The move reflects the commission’s efforts to catch up with “new normal” trends in the food business following the impact of the Covid-19 pandemic.
The online food delivery service is booming as consumers increasingly prefer to order meals from home rather that dine out and face risk of infection.
He said that the commission has already discussed plans for the guidelines with all related parties, who have raised no objections.
The guidelines include banning online food delivery operators from asking for an unreasonably high share of revenue from eateries.
They will also have to inform restaurants in advance whenever they want to change their rates or methods of collecting shared benefits.
With Covid-19 restrictions forcing people to stay at home, food delivery business has been booming over the past four months.
As many as 20,000 small and medium-sized restaurants joined food delivery platforms in the first half of this year, with the number of food deliveries growing by 150 per cent compared to the same period last year. Also, many new operators have entered the food-delivery market, which was dominated by four major players – Foodpanda, Lineman, Grab Food and GET Food.
The Kasikorn Research Centre predicts intense competition in the food-delivery business in the second half now that there are more local and foreign players. Besides, many Thai operators are following a brand new business model, such as keeping prices down by not collecting service fees from restaurants, adding extra features to their apps and even giving customers a chance to compare prices.
The research centre, however, believes that the boom in food delivery business may ease in the second half, unless there is a second wave of Covid-19 infections, which may again force people to stay at home.
Kasikorn estimated that the food-delivery industry will grow by 17 per cent in the second half compared to the same period last year, but this number may grow exponentially to 78 to 84 per cent if Covid-19 infections return.
Energy Minister Supattanapong Punmeechaow.
John Giusti, chief regulatory officer for GSMA
