Recap: Global bonds are rallying on speculation that interest rates will start falling if trade friction continues to jeopardise global economic growth. Most Southeast Asian stock markets fell yesterday after figures showed China's industrial output growth at a 17-year low.
The SET index moved in a range of 1,667.31 and 1,675.90 points before closing at 1,672.33, up 1.2% from the previous week, in turnover averaging 47.39 billion baht a day.
Foreign investors were net buyers of 8.5 billion baht and brokerages bought 1.3 billion worth of shares. Retail investors were net sellers of 6.6 billion baht and institutional investors offloaded shares worth 3.2 billion.
Newsmakers: US President Donald Trump has renewed his threat to slap tariffs on Mexico as controversy erupted over what exactly is in the countries' new migration deal, which the Mexican government admitted would be reviewed in 45 days.
China's exports beat gloomy forecasts to rebound in May ,though imports sank more than expected, as concerns lingered about the impact of its ongoing trade war with the US.
Gold and oil prices surged amid worries about rising Mideast tensions, following attacks on Norwegian and Japanese oil tankers in the Gulf of Oman. The United States blamed Iran, which called the accusation part of a campaign of US disinformation and "warmongering".
British Foreign Secretary Jeremy Hunt, who is trailing front-runner Boris Johnson in the race to succeed to Theresa May as prime minister, says German Chancellor Angela Merkel had indicated the EU would be willing to renegotiate the Brexit divorce deal.
The US retail giant Amazon has moved past Apple and Google to become the world's most valuable brand, the global market research agency Kantar said in its 2019 100 Top BrandZ report.
Fund inflows into Thailand's stock market are expected to continue increasing given greater perceived stability of the new coalition government and reduced trade friction. Year-to-date inflows have reached 5.36 billion baht, according to the Stock Exchange of Thailand.
The US Department of Commerce is exploring business opportunities for US-based tech firms to expand investment in Thailand's telecom sector, especially fifth-generation (5G) wireless broadband. The campaign is part of the effort to deter China's Huawei from securing more 5G business.
The National Economic and Social Development Council is fretting over tourism prospects as the mounting trade row between the world's two largest economies may affect the industry, which makes up about 20% of the country's GDP.
More than 100 billion baht a year is needed to fund welfare schemes promised by the new government, according to Fiscal Policy Office estimates.
The Commerce Ministry will hold talks with the Fisheries Department next week to evaluate the impact of illegal, unreported and unregulated (IUU) fishing practices on domestic fishing operators. There have been mounting complaints about a flood of imported fishery products from neighbouring countries where the rules are less stringent.
The Energy Fund Administration Institute is considering terminating price subsidies for gasohol and biodiesel within three years because the existing structure interferes with the stability of local fuel prices.
The state-owned Islamic Bank of Thailand (IBank) has set an aggressive target of trimming its bad debt ratio to 5% of credit outstanding in the next 3-4 years from 20% currently.
The duty-free incumbent King Power won the bid to run duty-free shops in three regional airports, marking another victory for the firm, which previously swept two licences to operate duty-free shops and commercial space at Suvarnabhumi Airport.
TrueVisions Group has secured the exclusive broadcast rights to air English Premier League (EPL) for three seasons from 2019-20 to 2021-22, showing 380 matches per season.
SET-listed Gunkul Engineering Plc is in talks with CP Group to join in the engineering, procurement and construction of power lines after a CP-led consortium won the bid for a high-speed railway linking three airports.
Coming up: The Reserve Bank of Australia will release its meeting minutes on Tuesday and Germany will release the ZEW economic sentiment index for June. Japan will announce May trade figures on Wednesday, with Britain and Canada releasing May inflation the same day.
The US Federal Reserve will announce its interest rate decision and economic projections around 2am Thursday Thailand time. The market will be looking for any signals that the Fed may be ready to cut rates if economic conditions remain shaky. The Bank of England will also hold a policy meeting on Thursday, and the EU will release June consumer confidence figures.
Japan will release May inflation data on Friday and Germany will announce June manufacturing PMI.
Stocks to watch: DBS Vickers Securities Thailand recommends fundamental picks including AMATA, BBL, ERW, KKP and STEC. For dollar-cost averaging, it suggests AOT, BBL, CPALL, BDMS and PTT. For high dividend yields, it suggests KKP, TISCO, HANA, TOP, SCC, LH, DREIT, HREIT, DIF and WHART.
Tisco Securities recommends consumer stocks poised to benefit from policies of the new government, including CPALL, BJC, CPN, MAJOR and AEONTS. Tourism-related picks are AOT, MINT, CENTEL and ERW, while stocks seen as shielded from trade war impact are ADVANC, AOT, BEM, BTS, INTUCH, MAJOR, DIF and JASIF.
Technical view: DBS Vickers Securities Thailand sees support at 1,610 points and resistance at 1,690. Tisco Securities sees support at 1,650 and resistance at 1,690.
