Daily Market Outlook - AWS · 23 January 2015 Daily Market Outlook 2 Please see disclaimer on last...
Transcript of Daily Market Outlook - AWS · 23 January 2015 Daily Market Outlook 2 Please see disclaimer on last...
23 January 2015
Daily Market Outlook
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ECB’s landmark QE
Thai shares look set to trade higher today in line with global stock
markets after the ECB rolled out a larger than expected QE. We
anticipate a new round of capital influx into high-yielded capital
markets, including Thai bond and stock markets. On the local front,
all eyes will focus on the impeachment cases against former PM
Yingluck and two former parliamentary speakers. Although there is
little chance the three will survive, political stability should not be
much affected under the tight control of the junta.
Local issues: Former PM Yingluck impeachment imminent. The National
Legislative Assembly (NLA) votes today on whether to impeach
former PM Yingluck Shinawatra and two former parliamentary
speakers. More than 150 members of the NLA are expected to
vote against her as she was still unable to clear up accusations
that she failed to stop massive losses under the government’s
rice-pledging scheme. Support from at least three-fifths of the 220
member NLA, or 132 votes, is required for impeachment while an
impeached politician will face a 5-year ban from holding political
office. (Bangkok Post)
TCG, financial institutions ready for new loan guarantee law.
The impending law on loan guarantees, set to take effect on
February 11, has prompted preparation by both the Thai Credit
Guarantee Corporation (TCG) and financial institutions. More
than 90% of commercial banks’ loans used to be collateralized by
people while new loans may be guaranteed by the TCG instead.
The TCG is targeting Bt80bn loan guarantees this year. (The
Nation) Comment: The new loan guarantee law is anticipated
to result in less lending from commercial banks. However,
an increase in guarantees by the TCG is expected to be seen
to help boost offset these adverse effects for financial
institutions.
Thailand to move up in mobile broadband rank. Thailand will
become ASEAN’s second-largest mobile broadband subscriber
base after Singapore once the country completes its 4G network
rollout. The country has the highest mobile broadband
penetration rate in ASEAN, with 50mn users, and predicts the
number of users will reach 72mn to surpass Malaysia and move
into second place. (Bangkok Post)
BECL expects to complete its merger with BMCL and start trading
in the stock market in 3Q/15. CK, the founder and major
shareholder of BECL and BMCL, vowed to support the merger by
buying the shares of those opposing the merger and not wanting
Thailand Research Department:
Mr. Warut Siwasariyanon (No.17923) Tel: 02 680 5041
Mr. Narudon Rusme, CFA (No.29737) Tel: 02 680 5056
Mr. Napat Siworapongpan (No.49234) Tel: 02 680 5094
Major Indices Close Chg %Chg
SET 1,560.34 +23.0 +1.5
SET50 1,039.12 +20.1 +2.0
SET P/E (x) 18.7
SET P/BV (x) 2.2
SET Div. Yield (%) 2.8
Dow Jones 17,813.98 +259.7 +1.5
S&P 500 2,063.15 +31.0 +1.5
NASDAQ 4,750.40 +83.0 +1.8
UK 6,796.63 +68.6 +1.0
Germany 10,435.62 +136.4 +1.3
France 4,552.80 +68.0 +1.5
Japan 17,329.02 +48.5 +0.3
South Korea 1,920.82 -0.4 -0.0
Hong Kong 24,522.63 +170.1 +0.7
China 3,344.40 +20.8 +0.6
Taiwan 9,369.51 +49.8 +0.5
Singapore 3,370.29 +15.8 +0.5
Malaysia 1,781.75 +11.7 +0.7
Indonesia 5,253.18 +37.9 +0.7
Philippines 7,416.31 -57.8 -0.8
Trading Summary Buy Sell Net
Institution 8,633 5,201 3,432
Proprietary 5,500 4,268 1,232
Foreign 13,320 11,930 1,389
Individuals 38,353 44,407 -6,054
Total Trading Value 65,805 Btmn
Most Active Value Value
TRUE 4,242 12.90 +1.6
CK 4,072 28.50 +6.5
ITD 3,712 8.40 +4.3
BMCL 2,436 2.06 -13.4
PTT 2,053 341.00 +3.3
Commodity Futures Close Chg %Chg
US Crude 46.31 -1.5 -3.1
Brent Crude 48.52 -0.5 -1.0
Gold 1,300.70 +7.0 +0.5
FX Rates Close Chg %Chg
USD/THB 32.59 +0.0 +0.1
EUR/USD 1.14 -0.0 -2.1
USD/JPY 118.48 +0.6 +0.5
USD/CNY 6.21 -0.0 -0.0
Source: Bisnews, Bloomberg
23 January 2015
Daily Market Outlook
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to hold a stake in the new company. Both BECL and BMCL will hold their
shareholders' meetings on April 2 and are open for creditors' opposition for two
months. (The Nation)
SENA (Sena Development Plc) plans to launch 11 new residential projects worth
a combined Bt10bn in 2015 as it grows confident of better market sentiment. The
company has set targets of Bt4.5bn presales and Bt3bn in revenue, up 50% YoY
and 10% YoY respectively. (Bangkok Post)
TRC expects its revenue and net profit to increase by 20% YoY supported by its
total Bt4.0bn secured backlog, which would be recognized as a revenue in this
year by 50%, along with the upcoming bidding results of PTT’s gas pipelines
maintenance project totaling value of Bt3.8bn. In the long run, TRC estimates its
revenue would increase to Bt10.0bn by 2019 driven by the government’s
infrastructure investment and the impending construction of its own potash
mining project totaling Bt20.0bn. (InfoQuest)
Global issues The European Central Bank on Thursday launched a government bond-
buying program which will pump about €1.14tn (US$1.29tn) to revive a sagging
euro zone economy and ward off deflation. Together with existing schemes, the
new quantitative easing program will release €60bn (US$68bn) a month into the
economy from March this year till September 2016. Mario Draghi said the ECB
will be responsible for only 20% of the purchases and the remainders will be for
national central banks to take care of. This means any potential losses, should a
euro zone government default on its debt, would fall on each European nation.
Another rule stipulates that a maximum 33% of the bonds issued by any country
may be bought. (Reuters) Comment: Together with Japan’s stimulus
announced late last year, the new global liquidity will go to where yields are
higher, namely US debts, emerging market bonds, higher growth stock
markets, etc. Therefore, we anticipate another round of capital influx into
emerging markets including Thai capital markets.
The euro sank to a more than 11-year low against the dollar and a 3-month
low against the yen on Thursday after the ECB launched a bond-buying
program. The euro fell as far as US$1.13675, the lowest since September 2003.
It hit a three-month low of 134.28 yen. (Reuters) USA Wall Street stocks surged on Thursday, with the S&P 500 and Nasdaq turning
positive for the year, as all shares that benefit from stronger European economy
rallied on the back of a larger than anticipated stimulus from the ECB. (Reuters)
The claims for unemployment benefits fell last week from a 7-month high,
pointing to continued improvement in labor market conditions. Initial claims for
state unemployment benefits slipped 10,000 to a seasonally adjusted 307,000
last week. That reversed the bulk of the prior week's increase which had pushed
claims to their highest level since early June, but fell short of economists
expectations for a 300,000 reading. (Reuters)
Europe European stocks hit seven-year highs on Thursday after the ECB unveiled a
bond-buying scheme. Euro zone banking stocks featured among the top gainers.
The DAX was up 1.3%, CAC40 rose 1.5% and FTSE surged 1.0%.
23 January 2015
Daily Market Outlook
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Commodities Crude oil futures tumbled on Thursday after the US EIA announced the largest
build in US crude stocks in at least 14 years and the stockpile was at the highest
level for this time of year in at least the last 80 years. Crude inventories rose 10.1
million barrels to 397.9 million barrels last week, compared with analysts'
expectations for an increase of 2.6 million barrels. US crude tumbled US$1.47 to
settle at US$46.31. Brent crude fell by 51 cents to finish at US$48.52. (Reuters)
Gold turned higher and touched a 5-month high above US$1,300 on Thursday, after the ECB launched a multi-billion euro bond-buying program. Spot gold settled up 0.8% percent at US$1,303.50 an ounce. US gold futures for February rose 0.5% at US$1,300.70 an ounce. (Reuters)
23 January 2015 4
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CG Report
Date Regions
20-Jan-15 CNY
21-Jan-15 JPY
22-Jan-15 EU
EU
US
23-Jan-15 EU
CNY
Mon Tue Wed Thu Fri
1 2
5 6 7 8 9
XD
TTL : 38.00 Bt
XR
MAX
XR
TSF
UWC
12 13 14 15 16
XW
BLISS
XW
AJD
XD
VGI : 0.14 Bt
XR
IFEC
19 20 21 22 23
XR/XW
TGPRO
XR
STHAI
SUPER
XW
SUPER
XE
WAT-W1
XD
BTS : 0.30 Bt
TNPF : 0.135 Bt
XR
SAFARI
26 27 28 29 30
XW
DCON
XR
SGF
XB
SGF-P1
XE
TLUXE-W2
XD
TSC : 0.50 Bt
HSBC Manufacturing PMI
January 2015
Economic Indicators
Gross Domestic Product
BoJ Press Conference
ECB Interest Rate Decision
ECB Monetary Policy Statement
Makrit Manufacturing PMI
Makrit Manufacturing PMI
23 January 2015 5
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CG Report
Corporate Governance Report of Thai Listed Companies (CGR). CG Rating by the Thai Institute of Directors Association (IOD) in 2013.
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
80 – 89
70 – 79
60 – 69
50 – 59
Below 50
No logo given
Excellent
Very Good
Good
Satisfactory
Pass
N/A
BAFS EGCO IRPC KTB PTTEP SAT SIM TOPBCP GRAMMY IVL MINT PTTGC SC SPALIBTS HANA KBANK PSL SAMART SCB TISCOCPN INTUCH KKP PTT SAMTEL SE-ED TMB
AAV BIGC DELTA HMPRO NBC PJW SAMCO SVI TOGACAP BKI DRT ICC NCH PM SCC TCAP TRCADVANC BLA DTAC KCE NINE PPS SINGER TF TRUEANAN BMCL DTC KSL NKI PR SIS THAI TSTEAOT BROOK EASTW LANNA NMG PRANDA SITHAI THANI TSTHASIMAR CENTEL EE LH NSI PS SNC THCOM TTAASK CFRESH ERW LHBANK OCC PT SNP TIP TTWASP CIMBT GBX LOXLEY OFM QH SPI TIPCO TVOBANPU CK GC LPN PAP RATCH SSF TK UACBAY CNT GFPT MACO PE ROBINS SSI TKT VGIBBL CPF GUNKUL MC PG RS SSSC TNITY VNTBECL CSL HEMRAJ MCOT PHOL S&J STA TNL WACOAL
2S BEAUTY CSS IHL MFEC PPM SKR TBSP TSC ZMICOAF BEC DCC INET MJD PPP SMG TEAM TSCAH BFIT DEMCO IRC MODERN PREB SMK TFD TTCLAHC BH DNA IRCP MONO PRG SMPC TFI TUFAIT BJC EA ITD MOONG PRIN SMT THANA TVDAJ BJCHI ESSO KBS MPG PTG SOLAR THIP TWFPAKP BOL FE KGI MTI QLT SPC THREL UMIAKR BTNC FORTH KKC NC QTC SPCG TIC UPAMANAH BWG FPI KTC NTV RCL SPPT TICON UPFAMARIN CCET GENCO L&E NUSA SABINA SST TIW UPOICAMATA CGD GL LRH NWR SALEE STANLY TKS UTAP CGS GLOBAL LST NYT SCBLIF STEC TLUXE UVAPCO CHOW GLOW MAJOR OGC SCCC STPI TMI UWCAPCS CI GOLD MAKRO OISHI SCG SUC TMT VIHAQUA CKP HOTPOT MATCH PACE SEAFCO SWC TNDT WAVEARIP CM HTC MBK PATO SEAOIL SYMC TPC WHAAS CMR HTECH MBKET PB SFP SYNEX TPCORP WINASIA CSC HYDRO MEGA PDI SIAM SYNTEC TRT WINNERAYUD CSP IFS MFC PICO SIRI TASCO TRU YUASA
Source: Thai Institute of Directors (IOD)
23 January 2015
Contact
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This report has been prepared by Asia Wealth Securities Company Limited (“AWS”). The information herein has been obtained from sources believed to be reliable and accurate, but AWS makes no representation as to the accuracy and completeness of such information. AWS does not accept any liability for any loss or damage of any kind arising out of the use of such information or opinions in this report. Before making your own independent decision to invest or enter into transaction, investors should study this report carefully and should review information relating. All rights are reserved. This report may not be reproduced, distributed or published by any person in any manner for any purpose without permission of AWS. Investment in securities has risks. Investors are advised to consider carefully before making decisions.
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