1

20 Aug 2014

Daily Market Outlook

Easing geopolitical concerns

The SET looks today to improve on yesterday’s gain. An absence of any

surprises on the local front, with both economic performance and political

development matching expectations, the market looks to be driven primarily

by some easing geopolitical concerns. With global news rather positive and

the US dollar strengthening, there is a positive global momentum spreading

to the region and Thailand.

Factors to watch

Local issues:

NESDB revises growth. Yesterday the NESDB released its review of 2Q14.

During 2Q14 Thai economy grew by 0.4% YoY, improving from a 0.5%

contraction in 1Q14. Seasonally-adjusted QoQ growth was 0.9%, thus

Thailand avoided a technical recession. Nonetheless weaker than expected

performance in global economy and slower than expected local recovery

(especially with tourism) led to downward revision of growth projection from

1.5-2.5% to 1.5-2.0%. (NESDB)

Concerns over NCPO budget. Democrats and Pheu Thai parties both raised

concerns over Bt2.57tn 2015 budget and how the allocation for the rural

economy has been sharply cut. NCPO terminated farm product subsidies and

other populist projects such as the village funds. Specifically, Small-Medium-

Large (SML) village fund (Bt5.7bn), community enterprise fund (Bt3bn) and

Regional Urban Development Fund (Bt1.2bn) have been cut. Democrat leader

Abhisit urged NCPO to review its policy for fear that farmers already hurt by

low crop prices would suffer and instead look to save money by cutting budget

for each individual government project by 10-20% through controlling graft in

procurement process. (Bangkok Post)

NCPO approved Bt210bn infrastructure projects yesterday. This includes

6 electricity and power generation projects amounted Bt172bn. Meanwhile, 3

state-owned enterprises’ boards approved 5 projects amounted Bt38.4bn

including airport rail link, mass transit and airports. BOI also approved 15

investment proposals amounted Bt40.5bn but cancelled tax benefits for some

businesses such as green tea, snack and bread. (Post Today)

New BOI strategy. On Tuesday agreed in principle to new strategy for 2015-

21 which focuses on industries that will lead to a shift in country’s economic

structure, the creation of value-added businesses. New 7-year plan will take

effect in January with aim to wean country away from dependence on low-

cost labor. Meeting also endorsed measures to encourage small and medium-

sized enterprises (SMEs) to improve production efficiency and boost

investment in deep South. (The Nation)

Profits made by listed companies jumped by 20.62% YoY in 2Q14 while

their turnover increased 7.69%, led by energy and utilities, banking and

property sectors. The companies with the highest retained earnings in 1H14

are: PTT, PTTEP, SCB, KBANK, and BBL. (Bangkok Post)

Source: Bisnews, Bloomberg

Thailand Research Department:

Mr. Warut Siwasariyanon Tel: 02 680 5041

Mr. Thunj Chantramonklasri Tel: 02 680 5077

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

Ms. Sukanya Leelarwerachai Tel: 02 680 5331

Major Indices Close Chg %Chg

SET 1,542.85 +0.5 +0.0

SET50 1,035.70 +0.2 +0.0

SET P/E (x) 17.9

SET P/BV (x) 2.2

SET Div. Yield (%) 2.9

Dow Jones 16,919.59 +80.9 +0.5

S&P 500 1,981.60 +9.9 +0.5

NASDAQ 4,527.51 +19.2 +0.4

UK 6,779.31 +38.1 +0.6

Germany 9,334.28 +89.0 +1.0

France 4,254.45 +23.8 +0.6

Japan 15,449.79 +127.2 +0.8

South Korea 2,071.14 +18.0 +0.9

Hong Kong 25,122.95 +167.5 +0.7

China 2,245.33 +5.9 +0.3

Taiwan 9,243.78 +102.5 +1.1

Singapore 3,316.43 +3.7 +0.1

Malaysia 1,872.16 +10.4 +0.6

Indonesia 5,165.17 +8.4 +0.2

Philippines 7,082.75 +55.2 +0.8

Trading Summary Buy Sell Net

Institution 2,815 2,049 766

Proprietary 3,423 2,768 655

Foreign 7,104 6,237 866

Individuals 23,379 25,667 -2,287

Total Trading Value 36,721 Btm

Most Active Value Value Close %Chg

CPF 1,600 30.00 +3.5

TRUE 1,004 10.30 -1.0

KBANK 966 223.00 +2.3

JAS 947 6.40 -3.8

SCB 730 188.50 +3.9

Commodity Futures Close Chg %Chg

US Crude 94.48 -1.9 -2.0

Brent Crude 101.56 -0.0 -0.0

Gold 1,296.70 -2.6 -0.2

FX Rates Close Chg %Chg

USD/THB 31.90 +0.1 +0.3

EUR/USD 1.33 -0.0 -0.2

USD/JPY 102.89 +0.3 +0.3

USD/CNY 6.14 -0.0 -0.0

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20 Aug 2014

Daily Market Outlook

Provincial Electricity Authority (PEA) expects to see solar farms

licensed for 500 MW to start operation by next year, from the total 1,054

MW held currently by inactive investors, with the remainder expiring. For the

solar rooftop program, another 867 MW is also targeted for development by

the end of next year. (Bangkok Post) Comment: The policy in order to

expedite remaining solar power energy projects is directly supportive

for solar farm EPC contractors, for instance, SOLAR, GUNKUL and

DEMCO.

PTT expects to exit the gas pipeline business this year in response to the

National Energy Policy Council’s request to improve transparency. A new

company would be set up to run the gas pipeline business by mid-2015.

Although PTT would hold 100% of the new company, it later hopes to invite

the Finance Ministry to hold the majority stake instead. (Bangkok Post)

TICON has received approval from the SEC to manage the first real

estate investment trust (REIT) worth Bt4bn to Bt5bn to be launched next

quarter. Ticon Management would manage both local and overseas

investments and revenues from lease and service fees for the REIT, with the

right to set up other funds in the future. (The Nation)

TUF maintains its 2014F targeted revenue of Bt4.0bn which will put effort into

developing high-value products. However, TUF foresees only slight

improvement in its 2H14 exports, which in line with the marginal recovery of

the global economy and with the labor issue a long-term challenge. (Bangkok

Post)

Global issues

Without any notable escalation or new development on the geopolitical

front on Tuesday, global markets were focused on data, much of which

was positive. Benign inflation figures in UK and US combined with

unexpected strong US data pushed Wall Street, the US dollar and

equities higher, while key commodities moved lower.

USA

Goldilocks US data. Big jump in US Housing Starts and Building Permits,

respectively 1.093 million versus 0.969 forecasted (15.7% monthly increase)

and 1.052 million versus 1.000 forecasted (8.1% increase) suggested US

property market was recovering. At the same time, US CPI data stayed low

and in line with expectations. E.g. US CPI Index 238.25 versus the forecast of

238.33 and US Core CPI monthly change was 0.1% versus the 0.2%

forecasted. (Reuters)

Comment: Strong housing data suggests consumer confidence and

purchasing power is back with a vengeance as there is a better than

expected improvement in big ticket items. Additionally, tempered CPI

may provide some reassurance investors the Fed would not rush to

tighten rates despite an improving economy. However, the Fed has said

it focuses on most Personal Consumption Expenditure (PCE), as

opposed to CPI.

3

20 Aug 2014

Daily Market Outlook

Strong general US performance. Reacting to the positive data, Wall Street

moved up around 0.5% on Tuesday. Evidently realizing Fed doesn’t care

much about CPI the market’s reaction in bond was more driven by housing

data than CPI data. Consequently the 10-year Treasury yields closed up 1bps

at 2.40% while 20year Treasury yield also rose 1bps US, suggesting some

lingering concern over tightening by the Fed. (Reuters)

Europe

European equities rise amidst easing geopolitical concerns. Benign US

and UK data, the latter going some way in offsetting Carney’s recent hawkish

comments, helped equities. FTSE closed up 0.56%, DAX rose 0.96%, French

CAC gained 0.56%, Milan 0.02% and Spanish IBEX 0.3%. German 10-year

bund eased 1bps to 1.00% while Spanish and Italian bond yields eased 3bps

and 4bps to 2.30% and 2.59% respectively. (Bloomberg)

Commodities

Fading Russia-Ukraine concerns allowed NYMEX Crude to fall 1.86% while

Brent closed the day flat. Gold eased from USD 1298 to 1296 given actual

and expected USD appreciation.

Date Regions Economic Indicators

20-Aug-14 USA FOMC minutes

21-Aug-14

EU Pre-PMI (Aug)

CNY Pre-PMI (Aug)

USA Pre-PMI (Aug)

26-Aug-14

USA Durable goods orders (Jul) Consumer confidence (Jul)

JPY

CPI (Jul) Retail sales (Jul)

Household spending (Jul) Unemployment rate (Jul)

27-Aug-14 EU Private loans (Jul)

Date XD

20-Aug-14

AUCT 0.15 Baht Cash

BAFS 0.28 Baht Cash

IVL 0.19 Baht Cash

LPN 0.26 Baht Cash

PM 0.25 Baht Cash

SMIT 0.10 Baht Cash

SYMC 0.15 Baht Cash

21-Aug-14

CSS 0.06 Baht Cash

GCAP 0.06 Baht Cash

PDG 0.07 Baht Cash

TNITY 0.25 Baht Cash

4

20 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.

5

20 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