Recap: The US stock market fell after news emerged that Republicans have proposed to postpone a planned corporate tax cut to 2019. On the domestic front, most SET- and MAI-listed companies have announced their operating results for the third quarter.
The SET index this week moved in a wide range between 1,688.77 and 1,721.08 points and shed 13.75 points yesterday to end the week at 1,689.28, down 0.7% from the previous week, in heavy turnover averaging 56.36 billion baht a day for five trading days. Foreign investors were net sellers of 3.93 billion baht and institutional investors sold 869.68 million. Brokers bought 1.01 billion baht and retail investors bought 3.79 billion baht worth of shares.
Newsmakers: US President Donald Trump's Asian tour has taken him to Vietnam for the Apec summit today, following visits to South Korea and China where he complained about "shockingly" big US trade deficits with those countries. In Beijing he witnessed the signing of deals worth $250 billion between US and Chinese firms, while chiding his hosts for forced technology transfers and intellectual property theft. He also urged China to do more to isolate North Korea and bring the rogue nuclear state to the bargaining table, but Beijing says it is doing enough.
Chinese export and import growth eased in October in a sign the economy is starting to cool after a strong first half, as Beijing's crackdown on pollution hits factory output. October exports rose 6.9% year-on-year in US dollar terms, down from 8.1% in September. Imports grew 17.2% year-on-year, down from 18.7% in September.
Two hundred Saudi Arabian royals, ministers and businessmen are now being detained in the biggest anti-corruption purge of the kingdom's affluent elite in its modern history. Among those caught in the widening net cast by powerful Crown Prince Mohammed bin Salman is billionaire investor Prince Alwaleed bin Talal. The attorney general has described the crackdown of the past two weeks as "phase one".
Finance Minister Taro Aso said Japan would not enter a bilateral free trade agreement with the United States to resolve the two countries' trade imbalance. However, Japanese attempts to revive the Trans-Pacific Partnership, minus the US, stalled this week amid multiple disagreements in Da Nang on the sidelines of the Apec talks.
Indonesia's economy expanded in the third quarter at a slower pace than economists expected, a disappointing outcome for the government as it struggles to boost growth. Gross domestic product rose 5.1% year-on-year and 3.2% quarter-to-quarter, according to data from the statistics bureau.
Foreign investors have been taking profits by selling Thai bonds and equities after gaining total returns of around 20%, but foreign purchases are expected early next year given supportive market conditions, say SET officials. The SET index has gained 12% this year and the baht has risen 8% against the US dollar, prompting foreign investors to sell their Thai assets.
In the latest effort to tackle its massive debt, embattled Pace Development Corporation Plc plans to raise funds through recapitalisation and the sale of two residential projects with an acquisition value estimated at 14.5 billion baht.
Thai Union Group Plc (TU), the world's biggest maker of canned tuna, expects its gross profit margin to improve this quarter on lower costs for raw materials after record third-quarter sales.
The Revenue Department estimates that 22.5 billion baht worth of shopping tax breaks will be claimed following cabinet approval of the populist perk between Nov 11 and Dec 3. It is estimated that the measure will cost the government 2 billion baht in revenue, while spurring 10 billion in spending.
The cabinet on Tuesday approved the Asean-Hong Kong Free Trade Area agreement, with the official signing scheduled to take place tomorrow on the sidelines of the Asean Summit in Manila.
The Bank of Thailand kept the policy interest rate unchanged on Wednesday as widely expected, saying the economy was growing at a faster pace than expected. The one-day repurchase rate has stood at 1.5% since April 2015.
Coming up: Japan will release October producer prices and China will release October foreign direct investment figures on Monday.
On Tuesday, China will release October retail sales, manufacturing index and fixed asset investment figures. Germany and the euro zone will release third-quarter GDP data, and the US will release October producer prices.
On Wednesday, Japan will release third quarter GDP, and final industrial production and trade statistics for September. The US will release retail sales and consumer prices for October and business inventory data for September.
Due on Thursday are German producer prices and euro zone inflation for October, US import-export prices and producer prices for October.
Stocks to watch: Bualuang Securities recommends buying shares of firms expected to report continued revenue and profit growth in the fourth quarter. They include AAV, SAT, TACC, UTP, ITEL, ILINK, LPN and COM7. It also notes stocks with potential to join the SET50 are SAWAD, CENTEL and TPIPP, while those expected to exit are KCE, PSH and TPIPL.
Tisco Securities recommends stocks that will benefit from year-end shopping tax breaks, including BEAUTY, BIG, COL, COM7, HMPRO, ROBINS and CENTEL. It also advises watching for upward revisions to fundamentals and performance for BR, LH, GPSC, RS, SQ and WORK.
Technical view: Bualuang Securities sees support at 1,660 points and resistance at 1,710. KT Zmico Securities sees support at 1,680 and resistance at 1,720.
