Recap: US politics continued to put pressure on global equities, with financial markets also keeping a close watch on comments from top central bankers. On the domestic front, investors were encouraged by data showing the best quarterly GDP growth in four years. And shares barely moved on Friday despite the bombshell revelation that former premier Yingluck Shinawatra had fled the country ahead of the ruling in her negligence trial.
The Stock Exchange of Thailand (SET) index moved in a tight range between 1,567.21 and 1,577.08 points before closing at 1,575.85, up 0.6% from the previous week, in moderate turnover averaging 35.68 billion baht a day. Foreign investors were net sellers at 6.01 billion baht and brokers sold 1.09 billion baht. Institutional were net buyers of 9.24 billion baht and retail investors sold 2.16 billion baht.
Big movers: AOT led in turnover, falling 0.95% to 52.25 baht; PTT gained 1.29% to close at 394 baht, and BDMS closed at 20.40 baht, gaining 0.99%. SUPER led in volume, gaining 4.03% to close at 1.29 baht. MAX was the top loser, plunging 25.00% to 0.03 baht. Top gainer DIGI surged 39.34% to 0.85 baht.
Newsmakers: Markets were looking for signals about interest-rate direction at the annual gathering of central bankers in Jackson Hole, Wyoming. But Federal Reserve Chair Janet Yellen used her address to make a vigorous defence of banking regulations. President Donald Trump has vowed to dismantle some of those rules. He also gets to decide whether to offer Ms Yellen a second term in February.
♦Indonesia's central bank surprised markets by cutting its benchmark rate by a quarter point to 4.5%, reflecting a benign currency and inflation outlook.
♦Cambodia has signed an agreement with Singapore-listed KrisEnergy to develop an offshore oil field that could finally result in Cambodia producing its own oil after years of delays.
♦The Thai economy is expected to grow 3.5% this year, up from 3.2% predicted in April, and rising to 3.6% next year, the World Bank said. The recovery is gaining momentum as farm incomes pick up after drought, merchandise and tourism exports rise and fiscal stimulus continues, it said.
♦The Commerce Ministry is expected to lift its full-year export growth target to between 6% and 6.5% from 5% earlier after a fifth straight month of double-digit gains in July. Export value climbed 10.5% to US$8.9 billion, as demand rose in line with the recovering global economy.
♦Kasikornbank has revised its year-end baht outlook to 33.50 to the US dollar from 34.50, citing continued capital inflows. A wider gap between Thailand's real interest rate and low inflation is attracting capital, particularly in short-dated Thai bonds, it said.
♦Although SET-listed companies' revenue rose 7.2% year-on-year to 2.7 trillion baht in the second quarter, net profit fell 9.5% to 255.67 billion baht, attributed to higher manufacturing and marketing expenses.
♦Creditors of Energy Earth Plc (EARTH) have not yet decided whether to vote in favour of the business rehabilitation plan proposed by the cash-strapped coal trader. Krungthai Bank (KTB), the largest creditor, is awaiting additional information from a court hearing on Sept 18, said KTB president Payong Srivanich.
♦Siam Commercial Bank (SCB), a creditor of Pace Development, has played down market worries, saying there was no sign the luxury property developer will miss debt payments because its cash flow is positive.
♦Adelfos Co, owned by the billionaire Sirivadhanabhakdi family, will acquire 50% of GMM Channel Trading Co, the operator of GMM25, the digital TV channel owned by GMM Grammy.
Coming up this week: The US consumer confidence index for August will be released tomorrow, followed by revised second-quarter GDP on Wednesday. Due the same day is euro zone consumer confidence for August.
♦China will release its Caixin Manufacturing PMI on Friday. US non-farm payrolls and the ISM manufacturing index are due the same day.
Stocks to watch: DBS Vickers Securities suggests high-dividend stocks, namely KKP, LALIN, TMT, LH, PSH, MODERN, BCP, MC, SENA, SNC, DIF, CPNRF and LHHOTEL.
Asia Plus Securities recommends stocks expected to generate high profits in H2 and 2018, such as MTLS, VGI, IRPC, JWD, ERW, GFPT and HANA.
Technical View: Bualuang Securities sees support at 1,550 and resistance at 1,580 points. DBS Vickers Securities sees support at 1,550 and resistance at 1,590.
