1

06 Aug 2014

Daily Market Outlook

Risk aversion on the rise

Thai stocks look set to fall today reacting to increasing risk aversion in the global financial markets. The escalating Russia-Ukraine tension is likely to renew and reinforce the already prevalent theme of risk aversion. Successful navigation by the NCPO so far and is expected for going forward, especially over the next few days, would shore up investor confidence further.

Factors to watch

Local issues:

MPC expected to hold rate. There is widespread consensus amongst

economists at leading banks that today’s meeting will result in the MPC

holding rate at 2% amidst a fragile recovery where private consumption and

investment declined slightly in June after rising in May. Rising household debt

(82.7% end of Q1) makes further cuts unlikely. (Bangkok Post)

Possible prosecution of former PM. National Anti-Corruption Commission

has forwarded case in which Yingluck is accused of dereliction of duty in rice-

pledging scheme to Office of Attorney-General, the latter to decide whether or

not to prosecute the former PM who is scheduled to return this Sunday. If OAC

decides to press charges it can do so in Yingluck’s absence. (Bangkok Post)

The Commerce Ministry is scheduled to open bidding for 167,000 tonnes

of rice on Thursday in what will be the first auction since the NCPO took

power on May 22. A floor price will be set for the auction opened to all types

of bidders – exporters, domestic traders, feed-meal producers, millers. The

ministry expects Thailand to export 9-10 million tons of rice this year. (The

Nation) (The Nation)

Housing Finance Association expects home loans to resume growth of

more than 10% next year as confidence in the economy is returning. (The

Nation)

SET will propose the NCPO for tax waivers for mergers and acquisitions. The tax is seen as a major obstacle for Thai corporates to expand via M&A. (Bangkok Post)

The Industry Ministry has approved factory permits for 158 of the 241

applications submitted last month after the period for approvals was cut to

30 days from 90. The 241 applicants intended investment of Bt43.5bn. The

first seven months of 2014, 2,212 applications were granted permits, down

5.4%YoY, with investment value surging 8.76% to Bt211bn. (Bangkok Post)

IRPC reported 2Q14 net profits at Bt178mn, decreasing 48.1% QoQ but

reversed into profits from losses in 2Q13. The QoQ drop in profit was mainly

due to weaker earnings performance at the core operations despite an

increase in non-recurring gains, especially from commodity derivative

instruments gains. (SET)

IVL reported 2Q14 net profits at B1.48bn, surging 302% QoQ and 592% YoY.

The QoQ increase in profit was mainly due to a significantly lower stock loss

together with higher sales volume. (SET)

BGH approved the issuance of convertible bonds not exceeding Bt10bn to

foreign investors, increasing the ceiling for foreign ownership of shares to 30%

of paid up capital. This is in an effort to reach their target of 43 hospitals this

year and 50 hospitals next year while bolstering their pharmaceutical sales

margin. (Post Today)

Source: Bisnews, Bloomberg

Thailand Research Department:

Mr. Warut Siwasariyanon Tel: 02 680 5041

Mr. Alex Manoonpol Tel: 02 680 5042

Mr. Traikun Kitimahakun Tel: 02 680 5043 Mr. Narudon Rusme Tel: 02 680 5056

Mr. Napat Siworapong Tel: 02 680 5094

Major Indices Close Chg %Chg

SET 1,528.98 +9.6 +0.6

SET50 1,025.51 +6.1 +0.6

SET P/E (x) 18.3

SET P/BV (x) 2.2

SET Div. Yield (%) 3.0

Dow Jones 16,429.47 -139.8 -0.8

S&P 500 1,920.21 -18.8 -0.9

NASDAQ 4,352.83 -31.1 -0.7

UK 6,682.48 +5.0 +0.1

Germany 9,189.74 +35.6 +0.4

France 4,232.88 +15.7 +0.4

Japan 15,320.31 -154.2 -1.0

South Korea 2,066.26 -14.2 -0.7

Hong Kong 24,648.26 +48.2 +0.2

China 2,219.95 -3.4 -0.2

Taiwan 9,141.44 -188.8 -2.0

Singapore 3,327.67 +9.3 +0.3

Malaysia 1,876.69 +0.9 +0.0

Indonesia 5,109.09 -10.2 -0.2

Philippines 6,974.00 -24.4 -0.3

Trading Summary Buy Sell Net

Institution 6,745 3,959 2,786

Proprietary 4,653 5,432 -779

Foreign 7,206 8,049 -843

Individuals 28,658 29,822 -1,164

Total Trading Value 47,262 Btm

Most Active Value Value Close %Chg

TRUE 3,242 10.60 +8.2

ADVANC 2,057 215.00 +1.4

JAS 1,847 7.25 +0.7

KTB 1,766 22.50 +0.9

BGH 1,629 18.10 +2.8

Commodity Futures Close Chg %Chg

US Crude 97.38 -0.9 -0.9

Brent Crude 104.61 -0.8 -0.8

Gold 1,285.30 -3.6 -0.3

FX Rates Close Chg %Chg

USD/THB 32.20 +0.1 +0.2

EUR/USD 1.34 -0.0 -0.3

USD/JPY 102.59 +0.0 +0.0

USD/CNY 6.17 -0.0 -0.1

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06 Aug 2014

Daily Market Outlook

KCE reported a 2Q14 net profit of Bt479mn, up 142.5% YoY, from a record

profit in sales. Sales grew 24.6% to Bt2.8bn, marking the fourth consecutive

quarter in which sales increased. (Kaohoon)

USA:

U.S. services sector activity in July hit an 8-1/2 year high, better than

expected. The Institute for Supply Management's services index rose to 58.7

last month, the highest level of activity since December 2005, from 56.0 in

June. Analysts surveyed by WSJ had expected an activity in July of 56.5.

(Reuters/ WSJ)

Orders for U.S. manufactured goods increased 1.1% in June, reaching

the highest level since 1992, according to the Commerce Department report.

The July increase was better than the 0.6% increase forecast by economists

and more than reversing May's 0.6% decline. Demand for commercial aircraft,

machinery, computers and electronic products led the surge in July

orders. (WSJ)

Europe:

Euro zone retail sales rose at the fastest rate in seven years in June.

Compared with the same period last year, the volume of retail sales in the 18

countries sharing the euro surged by 2.4% after a downwardly revised 0.6%

rise in May, posting its strongest growth since March 2007. (Reuters)

Heavy fighting erupts in Donetsk. From around 14:00 GMT Russia-Ukraine

escalated as Ukraine government forces tried to retake part of the Petrovksy

district of Donetsk. So far at least two civilians have been killed. (BBC)

Commodities:

Gold futures fell on Tuesday as the U.S. Department of Commerce released

a better-than-expected manufacturing report, while U.S. companies in the

service sector expanded in July at the fastest pace in nine years. Gold futures

for December fell US$3.60 (-0.28%) to settle at US$1,285.30 an ounce on the

COMEX in New York. (Reuters)

U.S. crude fell on Tuesday amid slow operations of refineries due to

schedule maintenance. US crude for September fell US$0.91 (-0.93%) to

settle at US$97.38 a barrel. Brent crude for September decreased US$0.80 (-

0.76%) to settle at US$104.61 a barrel. (Bloomberg)

Date Regions Economic Indicators

6-Aug-14 JPY Machinery Orders (Jun)

USA Trade Balance (Jun)

7-Aug-14

ECB ECB interest rate

USA Jobless Claims

JPY Current Account

8-Aug-14 CNY

Export (Jul) Import (Jul)

Trade Balance (Jul) New Loans (Jul)

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06 Aug 2014

Daily Market Outlook

Date XD

6-Aug-14 CPNCG 0.196 Baht Cash

CPNRF 0.273 Baht Cash

CRYSTAL 0.1928 Baht Cash

POPF 0.262 Baht Cash

SIRIP 0.15 Baht Cash

TGROWTH 0.2357 Baht Cash

TRUEIF 0.1938 Baht Cash

7-Aug-14 LHPF 0.3471 Baht Cash

MODERN 0.45 Baht Cash

QHHR 0.367 Baht Cash

QHPF 0.182 Baht Cash

SCC 5.50 Baht Cash

TPC 0.15 Baht Cash

8-Aug-14 UOB8TF 0.1097 Baht Cash

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06 Aug 2014

Daily Market Outlook

ADVANC BTS GRAMMY MCOT PTT SC SSI TMBAOT CIMBT HANA MINT PTTEP SCB SSSC TNITYASIMAR CK HEMRAJ NKI PTTGC SCC SVI TOPBAFS CPF ICC NOBLE QH SCSMG SYMC TRCBANPU CPN INTUCH PAP RATCH SE-ED TCAP TRUEBAY CSL IRPC PG ROBINS SIM THAI TTWBBL DRT IVL PHOL RS SIS THCOM TVOBCP DTAC KBANK PR S&J SITHAI THRE UVBECL EASTW KKP PRANDA SAMART SNC TIP VGIBKI EGCO KTB PS SAMTEL SPALI TISCO WACOALBROOK ERW LPN PSL SAT SPI TKT

2S ASP CHOW GBX JUBILE LRH NMG PPP SINGER TCP TOG UACACAP AYUD CM GC KBS LST NSI PREB SIRI TF TPC UMIAF BEC CNT GFPT KCE MACO NWR PRG SKR TFD TPCORP UMSAHC BFIT CPALL GL KGI MAJOR OCC PT SMT TFI TPIPL UPAIT BH CSC GLOW KKC MAKRO OFM PYLON SNP THANA TRT UPOICAKP BIGC DCC GOLD KSL MBK OGC QTC SPCG THANI TRU UTAMANAH BJC DELTA GSTEL KWC MBKET OISHI RASA SPPT THIP TSC VIBHAAMARIN BLA DTC GUNKUL L&E MFC PB SABINA SSF TICON TSTE VIHAMATA BMCL ECL HMPRO LANNA MFEC PDI SAMCO STANLY TIPCO TSTH VNGAP BWG EE HTC LH MODERN PE SCCC STEC TK TTA VNTAPCO CCET EIC IFEC LHBANK MTI PF SCG SUC TLUXE TTCL YUASAAPCS CENTEL ESSO INET LHK NBC PJW SEAFCO SUSCO TMILL TUF ZMICOASIA CFRESH FE ITD LIVE NCH PM SFP SYNTEC TMT TWFPASK CGS FORTH JAS LOXLEY NINE PPM SIAM TASCO TNL TYM

A ASIA CITY EASON HTECH KASET MJD PL SF SVOA TMI UOBKHAAV BAT-3K CMR EMC HYDRO KC MK POST SGP SWC TNDT UPFAEC BCH CNS EPCO IFS KCAR MOONG PRECHA SIMAT SYNEX TNPC UWCAEONTS BEAUTY CPL F&D IHL KDH MPIC PRIN SLC TBSP TOPP VAROAFC BGT CRANE FNS ILING KTC MSC Q-CON SMIT TCCC TPAC VTEAGE BLAND CSP FOCUS INOX KWH NC QLT SMK TEAM TPP WAVEAH BOL CSR FPI IRC LALIN NIPPON RCI SOLAR TGCI TR WGAI BROCK CTW FSS IRCP LEE NNCL RCL SPC TIC TTI WINAJ BSBM DEMCO GENCO IT MATCH NTV ROJNA SPG TIES TVD WORKAKR CHARAN DNA GFM JMART MATI OSK RPC SRICHA TIW TVIALUCON CHUO DRACO GJS JMT MBAX PAE SCBLIF SSC TKS TWZANAN CI EA GLOBAL JTS MDX PATO SCP STA TMC UBISARIP CIG EARTH HFT JUTHA PRINC PICO SENA SUPER TMD UEC

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.

Score Range Number of Logo Description

90 - 100 Excellent

80 - 89 Very Good

70 - 79 Good

60 - 69 Satisfactory

50 - 59 Pass

Below 50 No logo given N/A

รายงานการประเมนิการก ากบัดแูลกจิการ (CGR) โดยสมาคมสง่เสรมิสถาบนักรรมการบรษิทัไทย 2556 Corporate Governance Report of Thai Listed Companies (CGR). CG Rating by the Thai Institute of Directors Association (IOD)

in 2013.

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06 Aug 2014

Daily Market Outlook

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 44 Vachiraprakarn Road, Bangplasoi, Muang Chonburi,

Chonburi 20000

038-274-533 038-275-168

Chaseongsao

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

Sub-District, Meung District, Chachoengsao 24000

038-981-587 038-981-591