Global Power Synergy Plc (GPSC), the power flagship of PTT Group, expects to reach a conclusion in the third quarter on joint investment with PTT in the power business, GPSC chief executive Chawalit Tippawanich said.
The investment aims to produce 8,000 megawatts in the next 10 years, starting from this year, of which 3,000MW will be achieved in the first five years.
He added that the company was still looking for a merger and acquisition deal in the renewable energy business in foreign countries.
The company recently outlined strategies to boost its growth under a five-year investment plan from 2020-24. The strategies include seeking investment opportunities for power projects with the PTT Group.
E for L Aim (EFORL) needs to work on recovery after investing approximately Bt4.5 billion in the acquisition of Wuttisak Clinic in 2014.
After the takeover, EFORL’s revenue rose to Bt4.53 billion from Bt1.49 billion in 2014, but dropped sharply to Bt1.994 billion in 2019 after Wuttisak Clinic filed for bankruptcy due to performance losses since 2015.
As of December 31, 2019, EFORL’s accumulated loss was over Bt2.035 billion, while shareholders’ equity contracted by approximately Bt104 million.
The reasons behind this loss were organisational restructuring and arguments between EFORL and the Wuttisak Clinic International Group, which resulted in unstable business operations.
Though EFORL’s medical equipment business is still profitable, the loss from investment in Wuttisak Clinic has caused the company to suffer tight liquidity and debt-to-equity ratio of 7.8 times. The company’s shares dropped to 0.03 per share from the highest of Bt1.98 per share.
The Stock Exchange of Thailand (SET) Index rose by 8.15 points, or 0.61 per cent, to 1,349.07 in the morning session today (July 29).
A stock analyst at Krungsri Securities expected the index to fall to between 1,325 and 1,330 points before rebounding due to the conflict between US Republicans and Democrats over $1-trillion (Bt31.45 trillion) in economic stimulus measures.
“Also, uncertainty following the number of new Covid-19 cases in the US, with an increase of 60,000 in just one day, would pressure investment,” he said.
“However, the index will rebound from mass purchases in stocks whose second-quarter performance is expected to improve.”
The analyst advised investors to follow the US Federal Open market Committee meeting today and tomorrow, adding that the committee would maintain the interest rate at 0-0.25 per cent.
He recommended investors buy:
> Food and Electronic stocks that benefit from the weakening baht, such as CPF, GFPT, TU, TFG, Asian, KCE, Delta, Hana and SVI.
> Stocks whose second-quarter performance will improve, such as Top, PTTGC, SPRC, SCC, BGrim, CKP, CPF, TU, Tasco, STA, STGT, SPALI, AP, PRM, PTL, AJ, STark, CBG and TQM.
The SET Index closed at 1,340.92 on Friday, down 18.73 points, or 1.38 per cent. Total transactions amounted to Bt46.529 billion, with an index high of 1,350.93 and a low of 1,337.21.
The price of gold rose by Bt250 per baht weight in morning trade today (July 29), the Gold Traders Association reported.
As of 9.26am, the buying price of a gold bar was Bt28,950 per baht weight and selling price Bt29,050, while gold ornaments cost Bt28,425 and Bt29,550, respectively.
At close yesterday, the buying price of a gold bar was Bt28,700 per baht weight and selling price Bt28,800, while gold ornaments cost Bt28,182.44 and Bt29,300, respectively.
The Comex (commodity exchange) gold price to be delivered in August rose by US$13.6, or 0.7 per cent, to $1,944 (Bt60,004) per ounce at yesterday’s close.
Investors are still purchasing gold as a safe-haven asset amid uncertainty in this Covid-19 crisis and the conflict between US political parties over economic stimulus measures.
By Syndication Washington Post, Bloomberg · Rita Nazareth, Claire Ballentine, Sarah Ponczek · BUSINESS
U.S. stocks fell as traders assessed corporate earnings amid a resurgence in global coronavirus cases. Bonds rose.
The S&P 500 trimmed its monthly gain as worse-than-estimated results from McDonald’s Corp., 3M Co. and Harley-Davidson Inc. sent their shares slumping. Pfizer Inc. climbed after the drugmaker raised its earnings forecast and began a later-stage trial for a coronavirus vaccine with its German partner. Eastman Kodak Co. soared on news that it received a U.S. government loan.
Some of the largest companies report earnings this week, and investors will look for clues on whether a resurgence of covid-19 around the world will derail a recovery of corporate profits and the economy. The Federal Reserve extended most of its emergency lending programs by three months, through the remainder of 2020. A drop in consumer confidence added to evidence that the pace of the rebound is cooling as the virus interrupts reopenings in several states.
“We’ve seen a number of beneficiaries of the lockdowns and a lot of companies really hurt by the lockdowns,” said Bill McMahon, chief investment officer of active strategies for Charles Schwab Investment Management. “There is still a lot of uncertainty about the rest of the year in how they guide.”
The pandemic continues to rage in parts of the U.S., hot spots in Europe and across big emerging economies including India and Brazil. Governments are having to double down on the $11 trillion dollars worth of stimulus and unprecedented central bank support unleashed since the crisis began. The Fed is set to announce its rate decision Wednesday, and the market anticipates a dovish statement.
“There’s enough stimulus and support in the market from a monetary policy perspective, but also from fiscal, and that keeps a nice floor under the market,” said Amanda Agati, chief investment strategist for PNC Financial Services Group. “But we also think it’s going to be very difficult to make a lot of forward progress in this environment.”
Nasdaq’s biggest companies may struggle to surpass a performance milestone from the height of the 1990s dot-com era, according to Julian Emanuel, head of equity and derivatives strategy at BTIG LLC.
The Nasdaq-100 was leading the S&P 500 for a 10th straight month as of Monday, according to data compiled by Bloomberg. If the tech-heavy gauge hangs onto the lead through Friday, it will match a record streak between May 1999 and February 2000 — the final months before both indexes peaked. The latest run is at risk because of “poor share-price reactions to otherwise solid earnings reports” and other issues, he wrote.
These are some of the main moves in markets:
Stocks
– The S&P 500 decreased 0.6% as of 4 p.m. EDT.
– The Stoxx Europe 600 Index added 0.4%.
– The MSCI Asia Pacific Index advanced 0.4%.
Currencies
– The U.S. Dollar Index rose 0.1%.
– The euro declined 0.3% to $1.1716.
– The Japanese yen appreciated 0.3% to 105.08 per dollar.
Bonds
– The yield on 10-year Treasurys declined four basis points to 0.58%.
– Germany’s 10-year yield fell two basis points to -0.51%.
– Britain’s 10-year yield was unchanged at 0.109%.
Commodities
– The Bloomberg Commodity Index was little changed.
– West Texas Intermediate crude decreased 1.6% to $40.92 a barrel.
In a recent discussion, the Department of Industrial Promotion (DIP) and the Organisation for Small and Medium Enterprises and Regional Innovation, Japan (SME Support Japan) decided to match Thai and Japanese businesses to create an industrial bubble.
Nattapon Rangsitpon, DIP director general, said the industrial bubble will be operated through the T-GoodTech trading platform, which will link up with the J-Goodtech SME platform to match 4,000 Thai businesses with a Japanese business database of 20,000 members.
This system will also help publicise different businesses so they can be matched with different target markets.
DIP has recently been able to link up more than 70 businesses, accounting for up to Bt400 million in revenue from exports.
Thailand’s online trading system is expected to grow by more than 35 per cent this year, and should help strengthen the country’s industrial sector so it can advance in line with the global value chain.
More information is available via the Digital Industry Division at (02) 202 4562 or DIP’s Public Relations Department Office at (02) 202 4414-18 or by visiting https://www.dip.go.th/
The price of gold rose by Bt450 per baht weight in the morning trade on Tuesday (July 28), the Gold Traders Association reported.
As of 9.31am, the buying price of gold bars was Bt29,200 per baht weight and selling price Bt29,300, while gold ornaments cost Bt28,667.56 and Bt29,800, respectively.
At close on Monday, the buying price of gold bars was Bt28,750 per baht weight and selling price Bt28,850, while gold ornaments cost Bt28,227.92 and Bt29,350, respectively.
The COMEX (Commodity Exchange) gold price to be delivered in August rose by US$33.5 or 1.77 per cent to $1,931 (Bt60,973) per ounce at Monday’s close.
Gold closed at the highest as investors are still purchasing hold as a safe-haven asset amid uncertainty over US-China tensions, the Covid-19 pandemic and a weakening dollar.
By Syndication Washington Post, Bloomberg · Cristin Flanagan · BUSINESS
Moderna Inc. climbed as much as 11% Monday after getting a second round of U.S. funding for an experimental vaccine for covid-19 and kicking off its late-stage trial.
With an additional $472 million award from the Biomedical Advanced Research and Development Authority (BARDA) announced on Sunday, Moderna’s shot is now backed by $955 million of funds from the U.S.
The first participants in the 30,000 person study have been dosed, the Cambridge, Mass.-based biotech company said on Monday. Earlier, it said that the new award closed a funding gap in the larger-than-anticipated trial.
Moderna’s vaccine, co-developed with the National Institutes of Health, is one of more than 160 in development to prevent the spread of the disease, and the World Health Organization estimates about 25 different inoculations are currently in human trials. Moderna, alongside AstraZeneca Plc and Pfizer Inc., in partnership with BioNTech SE, have been among the first to show favorable immune responses to their vaccines.
Larger trials are needed to establish vaccines’ efficacy. “Results from early-stage clinical testing indicate the investigational mRNA-1273 vaccine is safe and immunogenic, supporting the initiation of a Phase 3 clinical trial,” Anthony Fauci said in an NIH statement about Moderna’s shot.
Government support for the vaccine “increases our confidence in its success,” BMO analyst George Farmer wrote in a note to clients. Goldman analysts led by Salveen Richter called Moderna “a leading contender” to bring a vaccine to the market, potentially before the end of the year.
“Having a safe and effective vaccine distributed by the end of 2020 is a stretch goal, but it’s the right goal for the American people,” said Francis Collins, director of the health agency. Interim looks at the larger study may lead regulators to give Moderna’s shot an early approval, according to Goldman.
Investors will also want to know how Moderna’s shot looks in seniors. Some early-stage results in older people are expected in August, while Phase 2 data is expected sometime between next month and September.
