Daily Market Outlook 7 June 2016

1

Please see disclaimer on last page

Yellen’s dovish remarks Thai shares are poised to trade higher today tracking solid gains on Wall Street and global bourses after Fed Chair Janet Yellen painted a positive picture of the US economy and assured gradual withdrawals of policy accommodation but gave little sense of immediate rate hikes. The latter underpins rising global risk appetite. Local factors today are also moderately favourable. The MOF’s proposed use of Article 44 to suppress loan sharks will help grass root people and benefit nano-finance operators. Meanwhile, the government’s additional Bt5.0bn subsidy to support provincial tourism is seen as another fiscal stimulus for regional economies.

Pick of the day: BBL (Bt165.50; BUY; AWS 16TP Bt188.00) Bangkok Bank PCL is expected to benefit significantly from the government's acceleration of infrastructure investment projects, many of which should start being implemented in 2H16, hence increasing corporate lending demand. These investments are expected to be a major driver in revitalizing the economy and enhancing consumer confidence, which would eventually stimulate investments from the private sector. In spite of economic uncertainty, BBL’s asset quality remains superior with a high coverage ratio of 174.4% as of 1Q16 though it deteriorated from 185.3% as of 2015. This high debt cushion would give it a great advantage over peers who will be attempting to build up their reserves to adequate levels. More importantly, the counter is quite attractive given its undemanding valuation with PBV of 0.9x and pleasing dividend yield of 4.2%. Our forecast calls for earnings to grow 5.5% in 2016 and 11.8% in 2017. BBL’s price pattern has just returned to strength in the short term after a daily buy signal. If the share manages to close above Bt167 by the end of any week, a weekly buy signal will be a result, strengthening the upward momentum of the share price in the medium term and adding strength in the longer term with a monthly buy signal already in place. The share is likely to move up to test Bt177. There is a stop loss at Bt161.50. (Resistance: 167.00, 168.50, 170.50; Support: 164.00, 162.00, 160.50) Local issue Section 44 on loan shark. The Finance Ministry has

proposed using Section 44 powers to deal with loan sharks

who charge higher interest rate than the law allows, said

finance permanent secretary Somchai Sujjapongse.

Further, the Ministry will instruct the Revenue Department

to investigate whether loan shark operators have correctly

paid income tax. Such move is a part of its efforts to rescue

low-income earners from underground lenders. (Bangkok

Post) Comment: This should be a positive vibe for

nano-finance operators such as MTLS (BUY, AWS 16

TP Bt25.50) and SAWAD (BUY, AWS 16 TP Bt57.00).

Major Indices Close Chg %Chg

SET 1,443.42 +7.0 +0.5

SET50 920.90 +4.1 +0.5

SET P/E (x) 21.9

SET P/BV (x) 1.9

SET Div. Yield (%) 3.3

Dow Jones 17,920.33 +113.3 +0.6

S&P 500 2,109.41 +10.3 +0.5

NASDAQ 4,960.18 +17.7 +0.4

UK 6,273.40 +63.8 +1.0

Germany 10,144.14 +40.9 +0.4

France 4,431.70 +9.9 +0.2

Japan 16,580.03 -62.2 -0.4

South Korea 1,985.84 +0.7 +0.0

Hong Kong 21,030.22 +83.0 +0.4

China 2,934.29 -4.4 -0.1

Taiwan 8,597.11 +5.5 +0.1

Singapore 2,831.28 +22.1 +0.8

Malaysia 1,648.99 +12.5 +0.8

Indonesia 4,896.02 +42.1 +0.9

Philippines 7,598.22 +84.0 +1.1

Trading Summary Buy Sell Net

Institution 5,089 4,710 379

Proprietary 4,865 3,944 921

Foreign 9,906 9,147 759

Individuals 22,116 24,175 -2,059

Total Trading Value 41,976 Btmn

Most Active Value Value Close %Chg

ADVANC 1,720 165.00 1.9

CPALL 1,545 49.25 -0.5

SCB 1,367 140.50 1.1

AOT 1,334 387.00 -0.8

PTT 1,190 308.00 0.7

Commodity Futures Close Chg %Chg

US Crude 49.69 +1.1 +2.2

Brent Crude 50.55 +0.9 +1.8

Gold 1247.40 +4.5 +0.4

FX Rates Close Chg %Chg

USD/THB 35.09 +0.0 +0.1

EUR/USD 1.12 -0.0 -0.0

USD/JPY 111.78 +0.3 +0.3

USD/CNY 6.50 +0.0 +0.0

Source: Bisnews, Bloomberg

Technical picks (support & resistance)

ICHI (S: 11.20, R: 13.30); BEM (S: 6.15, R: 6.70); SPALI (S: 21.60, R: 22.40); SET (S: 1,435, R: 1,452)

Thailand Research Department

Mr. Warut Siwasariyanon (No.17923) Tel: 02 680 5041

Mr. Krit Suwanpibul (No.17968) Tel: 02 680 5090

Mrs. Vajiralux Sanglerdsillapachai (No. 17385) Tel: 02 680 5077

Mr. Narudon Rusme, CFA (No.29737) Tel: 02 680 5056

Mr. Napat Siworapongpun (No.49234) Tel: 02 680 5094

Ms. Sukanya Leelarwerachai (No.68790) Tel: 02 680 5331

Daily Market Outlook 7 June 2016

2

Please see disclaimer on last page

Bt5bn for tourism industry reform. The government yesterday approved a

proposal to allot Bt5bn from the central budget for tourism industry reform. This

new budget will fund community-based tourism development during 2016-2020

as a part of the state’s plan to develop five tourism clusters, as well as to raise

income of villagers. This funding request will be submitted for cabinet approval

later. (Bangkok Post)

Global issues Yellen upbeat on economy: Federal Reserve Chair Janet Yellen said on

Monday that the "positive economic forces outweighed the negative" after

Friday’s dismal jobs report. Yellen emphasized that one should not attach too

much to any single report. She highlighted possible risks, namely slowing

demand and productivity, inefficient inflation growth and global risks, such as

the Brexit. She said gradual interest-rate rises were likely warranted but did not

give a timetable. Yellen's remarks were probably her last public comments

before a policy meeting next week on 14-15 June. (Reuters) Comment:

Markets seem to have lowered expectations on a June and July rate hike.

The dollar was little changed against a basket of currencies on Monday

as Fed Chair Janet Yellen’s remarks implied warranted rate hikes but no

immediate actions with concerns about Britain's referendum on its membership

in the EU. The dollar index rose briefly on Yellen's rate-hike comment before

turning modestly lower. It was last down 0.1% on the day at 93.925. (Reuters)

US Treasury yields rose on Monday as investors evaluated whether a weak

jobs report for May would make it less likely that the Fed will raise interest rates

in the coming months. Benchmark 10-year notes fell 6/32 in price to yield

1.725%, up from a two-month low of 1.697% on Friday. (Reuters)

USA Wall Street shares finished higher on Monday with S&P500 closing at a 7-

month high as Fed Chair Janet Yellen painted a mostly upbeat picture of the

economy but gave little sense of when a rate hike may be coming. Energy

shares also boosted the market after oil ended higher. (Reuters)

Europe European stocks edged up on Monday, helped by gains in major mining and

oil company shares following weakness in the dollar prompted by Friday's weak

US jobs data, since a weaker greenback makes commodities priced in the dollar

term more affordable for consumers paying with other currencies. (Reuters)

Asia PM Shinzo Abe is preparing a new assault on deflation. After postponing a

hike in the country's consumption tax, the Japanese PM is about to launch a

fiscal stimulus which could be worth between ¥5.0tn and ¥10tn (US$47bn to

US$93bn). This fiscal stimulus is aimed at expanding the workforce and slow

the aging of Japanese society. (Reuters)

Stocks in China edged lower on Monday as investors await a flurry of data

in coming weeks to assess the health of the economy. However, losses were

capped by growing hopes that MSCI will include Chinese shares in its emerging

market index in a decision next week, which could spark foreign buying.

(Reuters)

Chinese economic data in focus: Forex reserve data could be released today,

with trade on Wednesday and inflation on Thursday. Loan and money data is

expected any time from June 10-15 and activity data (investment, industrial

output and retail sales) on June 12. (Reuters)

Daily Market Outlook 7 June 2016

3

Please see disclaimer on last page

Commodities Oil prices rose on Monday as attacks on Nigeria's oil industry and fresh draws

in US crude stockpiles boosted prices even though gains were pared later on

renewed expectations of a US interest rate hike. Brent crude futures were up

68 cents (+1.3%) at US$50.32 a barrel. Earlier in the session, it hit US$50.83,

its highest since November. US crude futures rose 80 cents (+1.6%) to

US$49.42, after an intraday high at US$49.90. (Reuters)

Gold edged up to a two-week high and then retraced some gains on

Friday, holding steady after Fed Chair Janet Yellen said she still expected

gradual US rate increases. Spot gold was up 0.02% at US$1,244.31 an ounce,

after rising to its highest since May 24 at US$1,248.40 an ounce. US gold

futures for August delivery settled up 0.4% at US$1,247.40 an ounce. (Reuters)

Daily Market Outlook 7 June 2016

4

Please see disclaimer on last page

Date Regions

6-Jun-16 EU

6-Jun-16 US

7-Jun-16 EU

7-Jun-16 EU

7-Jun-16 US

8-Jun-16 CNY

8-Jun-16 JPY

9-Jun-16 CNY

9-Jun-16 CNY

Trade Balance USD (May)

Consumer Price Index (MoM) (May)

Economic Indicators

Targeted LTRO

Eco Watchers Survey: Outlook (May)

Gross Domestic Product s.a. (YoY) (Q1)

Nonfarm Productivity (Q1)

Gross Domestic Product s.a. (QoQ) (Q1)

Labor Market Conditions Index (May)

Consumer Price Index (YoY) (May)

Mon Tue Wed Thu Fri

1 2 3

6 7 8 9 10XD

CTARAF

IMPACT

KPNPF

MJLF

XD

TCB

TR

WHABT

XD

LHSC

QHPF

13 14 15 16 17XD

LHK

20 21 22 23 24

27 28 29 30

Jun-16

5

Please see disclaimer on last page

CG Rating

Score Range Number of Logo Description

90 – 100

80 – 89

70 – 79

60 – 69

50 – 59

Below 50

No logo given

Excellent

Very Good

Good

Satisfactory

Pass

N/A

Corporate Governance Report of Thai Listed Companies (CGR). CG Rating by the Thai Institute of Directors Association (IOD) in 2015.

Corporate Governance Report disclaimer

The disclosure of the survey result of the Thai Institute of Directors

Association (“IOD”) regarding corporate governance is made pursuant

to the policy of the Office of the Securities and Exchange Commission.

The survey of the IOD is based on the information of a company listed

on the Stock Exchange of Thailand and the Market for Alternative

Investment disclosed to the public and able to be accessed by a

general public investor. The result, therefore, is from the perspective of

a third party. It is not an evaluation of operation and is not based on

inside information.

The survey result is as of the date appearing in the Corporate

Governance Report of Thai Listed Companies. As a result, the survey

result may be changed after that date, Asia wealth Securities Company

Limited does not conform nor certify the accuracy of such survey result.

ADVANC BAFS BCP BIGC BTS CK CPN DRT DTAC DTC EASTW EGCO GRAMMYHANA HMPRO INTUCH IRPC IVL KBANK KCE KKP KTB LHBANK LPN MCOT MINTMONO NKI PHOL PPS PS PSL PTT PTTEP PTTGC QTC RATCH ROBINS SAMARTSAMTEL SAT SC SCB SCC SE-ED SIM SNC SPALI THCOM TISCO TKT TMBTOP VGI WACOAL

AAV ACAP AGE AHC AKP AMATA ANAN AOT APCS ARIP BMCL BOL BROOKBWG CENTEL CFRESH CHO CIMBT CM CNT COL CPF CPI CSL DCC DELTADEMCO ECF EE ERW GBX GC GFPT GLOBAL GUNKUL HEMRAJ HOTPOT HYDRO ICCICHI INET IRC KSL KTC LANNA LH LOXLEY LRH MACO MBK MC MEGAMFEC NBC NCH NINE NSI NTV OCC OGC OISHI OTO PAP PDI PEPG PJW PM PPP PR PRANDA PREB PT PTG Q-CON QH RS S&JSABINA SAMCO SCG SEAFCO SFP SIAM SINGER SIS SITHAI SMK SMPC SMT SNPSPI SSF SSI SSSC SST STA STEC SVI SWC SYMC SYNTEC TASCO TBSPTCAP TF TGCI THAI THANA THANI THIP THRE THREL TICON TIP TIPCO TKTKS TMI TMILL TMT TNDT TNITY TNL TOG TPC TPCORP TRC TRU TRUETSC TSTE TSTH TTA TTCL TTW TU TVD TVO TWPC UAC UT UVVNT WAVE WINNER YUASA ZMICOVNT WAVE WINNER YUASA ZMICO

2S AEC AEONTS AF AH AIRA AIT AJ AKR AMANAH AMARIN AP APCOAQUA AS ASIA AUCT AYUD BA BEAUTY BEC BFIT BH BIG BJC BJCHIBKD BTNC CBG CGD CHG CHOW CI CITY CKP CNS CPALL CPL CSCCSP CSS CTW DNA EARTH EASON ECL EFORL ESSO FE FIRE FOCUS FORTHFPI FSMART FSS FVC GCAP GENCO GL GLAND GLOW GOLD GYT HTC HTECHIEC IFEC IFS IHL IRCP ITD JSP JTS JUBILE KASET KBS KCAR KGIKKC KTIS KWC KYE L&E LALIN LHK LIT LIVE LST M MAJOR MAKROMATCH MATI MBKET M-CHAI MFC MILL MJD MK MODERN MOONG MPG MSC MTIMTLS NC NOK NUSA NWR NYT OCEAN PACE PATO PB PCA PCSGH PDGPF PICO PL PLANB PLAT PPM PRG PRIN PSTC PTL PYLON QLT RCIRCL RICHY RML RPC S SALEE SAPPE SAWAD SCCC SCN SCP SEAOIL SIRISKR SMG SOLAR SORKON SPA SPC SPCG SPPT SPVI SRICHA SSC STANLY STPISUC SUSCO SUTHA SYNEX TAE TAKUNI TCC TCCC TCJ TEAM TFD TFI TICTIW TLUXE TMC TMD TOPP TPCH TPIPL TRT TSE TSR UMI UP UPFUPOIC UREKA UWC VIBHA VIH VPO WHA WIN XO

Source: Thai Institute of Directors (IOD)

6

Please see disclaimer on last page

CG Rating

ขอมล Anti-Corruption Progress Indicator ของบรษทจดทะเบยน

ระดบ 1ACD AEONTS AFC AIRA AJ ALUCON AMC AQUA ARIP AUCT BAT-3K BIG BJCBLISS BMCL BOL BRR BSBM CBG CCET CCN CGD CMR CPH CSC CSPCTW DCON DRACO DSGT DTCI E EMC ESSO FOCUS FSMART GIFT GLANDGRAND GUNKUL HFT HTECH IHL ILINK ITD JSP KDH KTIS KTP LEE LSTMAJOR MATCH MAX M-CHAI MDX MIDA ML MPIC NC NEP NNCL NWR OHTLPICO PK PL PPM PRAKIT PRECHA PRIN PSTC PYLON RAM RICH RS SANKOSAUCE SAWAD SAWANG SCN SEAFCO SF SHANG SIRI SMART SMM SOLAR SPACK SPGSPPT SPVI STA STAR SVH SVOA SWC TAPAC TC TCCC TCJ TCOAT THTKS TNH TNPC TPA TPAC TPOLY TRC TRUBB TSE TTA TTI TTL TTTMTWP TWZ U UMS UPA UPOIC UTP UVAN VARO VI VIBHA VIH VTEWG

ระดบ 22S ABICO AF AKP AMARIN AMATA AOT APCO AYUD BEAUTY BFIT BH BKDBLAND BTNC CCP CI CSR CSS EFORL EPCO FE FNS FVC GEL GLOBALHEMRAJ IEC IFS INET JUTHA KASET KCAR KKC KSL L&E LALIN LTX MMALEE MBK MBKET MEGA MK MPG MTLS NCH NCL NPP OCC OCEAN PBPCA PRINC QH ROCK RPC S&J SGP SIAM SIS SKR SMG SMIT SORKONSUSCO TAKUNI TEAM TF TIC TIP TIPCO TMC TMI TPP TRT TRU TRUETSC TSI TTW TVD TVO UKEM UNIQ UWC VNG WIIK WIN XO

ระดบ 3AABC ACAP ADVANC AEC AGE AH AIE AMANAH ANAN AP APCS APURE ASASIA ASIAN ASIMAR BIGC BROOK BTS BWG CEN CENTEL CFRESH CHARAN CHO CHOTICM CNT COL CPALL CPF CPI CPL DELTA DEMCO DIMET DNA DTAC EAECF EE EVER FPI GBX GC GFPT GLOW HMPRO HOTPOT ICC ICHI IFECINOX INSURE IRC JAS JTS JUBILE KC KTC KYE LHK LPN LRH MAKROMC MCOT MFC MFEC MINT MJD MONO MOONG NBC NDR NINE NMG NSINTV OGC PACE PCSGH PDI PG PHOL PLAT PPS PR PRANDA PREB PSQLT RATCH RML ROBINS ROJNA RWI SAMCO SCCC SCG SEAOIL SE-ED SENA SINGERSITHAI SMK SMPC SPALI SPC SPCG SPI SRICHA SSI STANLY SUPER SVI SYMCSYNEX SYNTEC TASCO TCMC TFI THAI THRE THREL TICON TKT TLUXE TNL TPCORPTMILL TMT TSTE TSTH TTCL TU TVI UOBKH UREKA VGI VNT WACOAL WHAZMICO

ระดบ 3BAAV AHC AI AIT AKR ARROW ASK BA BDMS BEC BECL BJCHI BUICGH CHG CHOW CIG CITY CK CKP COLOR CWT EARTH EASON EPG F&DFANCY FIRE FMT FORTH GENCO GL GOLD GPSC GRAMMY HYDRO IRCP IT JCTKCM KWC LH LIT LOXLEY MACO MANRIN MATI MODERN MSC NOBLE NOK NPKNUSA OISHI OTO PAF PAP PATO PF PJW PLANB PLE POLAR PRG PTLQ-CON QTC RCI S11 SALEE SAM SAMART SAMTEL SAPPE SC SCP SFP SIMSLP SMT SPA SPORT SSC SST STEC STPI SUC SUTHA T TAE TBSPTCC TFD TGCI TGPRO THANA THIP TIW TK TMW TNDT TOPP TPC TPCHTPIPL TSR TT TYCN UAC UBIS UEC UMI UP UPF UT UV VPOWAVE WINNER YUASA

ระดบ 4ASP BAFS BANPU BAY BBL BKI BLA CIMBT CNS CSL DCC DRT DTCEASTW ECL EGCO ERW FSS GCAP HANA HTC INTUCH IRPC IVL KBANK KCEKGI KKP KTB LANNA LHBANK MTI NKI PSL PTG PTTEP SABINA SCB SNCSNP SSF SSSC TCAP THCOM TISCO TIMB TMD TNITY TOG

ระดบ 5BCP CPN GYT PE PM PPP PT PTT PTTGC SAT SCC THANI TOP

ไมเปดเผยหรอไมมนโยบายA ACC AJD AQ BCH BGT BROCK BSM BTC CHUO CPR CRANE EICFER JMART JMT KAMART KBS KIAT LDC MBAX MCS METCO NEW NEWS NYTPAE PDG PERM PMTA POST RCL RICHY ROH S SIMAT TCB TR TSFTVT WORKหมายเหตระดบ 1 : มนโยบายระดบ 2 : ประกาศเจตนารมณระดบ 3 : มมาตรการปองกน ซงทง 2 กรณ ถอเปนผลการประเมนในระดบเดยวกน

3A : บรษทมการประกาศเจตนารมณเขารวมโครงการ CAC หรอภาค3B : บรษทมค ามน และนโยบายของบรษท แตมไดประกาศเจตนารมณเขารวมโครงการ CAC หรอภาค

ระดบ 4 : ไดรบการรบรองระดบ 5 : ขยายผลสผท เกยวของ

7

Please see disclaimer on last page

Contact

Branch Address Phone Fax

Head Office 540 Floor 7,14,17 , Mercury Tower, Ploenchit Road, Lumphini,

Pathumwan Bangkok 10330

02-680-5000 02-680-5111

Silom 191 Silom Complex Building,21st Floor Room 2,3-1 Silom Rd.,

Silom, Bangrak, Bangkok, 10500 Thailand

02-630-3500 02-630-3530-1

Asok 159 Sermmitr Tower, 17th FL. Room No.1703, Sukhumvit 21

Road, Klong Toey Nua, Wattana, Bangkok 10110

02-261-1314-21 02-261-1328

Pinklao

7/3 Central Plaza Pinklao Office Building Tower B, 16th Flr.,

Room No.1605-1606 Baromrajachonnanee Road, Arunamarin,

Bangkoknoi, Bangkok 10700

02-884-7333 02-884-7357,

02-884-7367

Chaengwattana

99/99 Moo 2 Central Plaza Chaengwattana Office Tower, 22nd

Flr., Room 2204 Chaengwattana Road, Bang Talad, Pakkred,

Nonthaburi 11120

02-119-2300 02-8353006

Chaengwattana 2

9/99 Moo 2 Central Plaza Chaengwattana Office Tower, 22nd Flr.,

Room 2203 Chaengwattana Road, Bang Talad, Pakkred,

Nonthaburi 11120

02-119-2388 02-119-2399

Mega Bangna 39 Moo6 Megabangna, 1st Flr., Room 1632/7 Bangna-Trad

Road, Bangkaew Bangplee, Samutprakarn 10540

02-106-7345 02-105-2070

Rayong 356/18 Sukhumvit Road, Nuen-Phra Sub District, Muang

District, Rayong Province 21000

038-808200 038-807200

Khonkaen 26/9 Srijanmai Road, Tamboonnaimuang, Khon Khaen

40000

043-334-700 043-334-799

Chonburi 55/22 Moo 1, Samed Sub District, Muang District, Chonburi

20000

038-053-858 038-784-090

Chaseongsao 233-233/2 Moo2 1st Flr., Sukprayoon Road, Na Meung Sub-

District, Meung District, Chachoengsao 24000

038-981-587 038-981-591