Recap: Investor confidence was further shaken yesterday as more trade war clouds gathered after US President Donald Trump announced 5% tariffs on all Mexican imports, effective from June 10. Investors shifted into safe-haven assets reflected by rising bond prices, subsequently inducing a decline in bond yields.
The SET index moved on a narrow range between 1,612.17 and 1,632.47 points before closing at 1,620.22, up 0.4% from the previous week, in heavy trade averaging 83.05 billion baht a day.
Foreign investors were net buyers of 17.64 billion baht and brokerage firms bought 7.25 million worth of shares. Institutional investors were net sellers of 15 billion baht and retail investors offloaded shares worth 2.7 billion.
Newsmakers: Chinese state media on Wednesday dangled the threat of cutting exports of rare earths to the United States as a counter-strike in the trade and tech war, potentially depriving America of a key resource used to make everything from smartphones to military hardware.
Huawei has asked a US court to throw out US legislation that bars federal agencies from buying its products. Meanwhile, China is preparing to compile a list of "unreliable entities", similar in nature to the blacklist Washington used to block Huawei because of security concerns.
The US Treasury again found that neither China nor any other trading partners was manipulating its currency, according to a semi-annual report released on Tuesday.
European leaders descended on Brussels on Tuesday to start the hunt for a new generation of top EU officials in the wake of elections that shook up traditional alliances. The key job to be filled is that of the European Commission president. Jean-Claude Juncker will finish his five-year term on Oct 31.
Although Thailand managed to avoid a place on the US watch list for currency manipulation, the Bank of Thailand is still wary after the US Treasury tightened its criteria, says the central bank's chief.
The government has hailed the latest upgrade for Thailand in a key international competitiveness ranking, saying the jump of five spots to 25th place reflected a sustained effort by officials over the past five years.
The Manufacturing Production Index (MPI) in April fell for the first time this year, dipping to its lowest level in 12 months at 95.9 points because of a sagging global economy and the US-China trade war denting Thai exports.
The Fiscal Policy Office will revise its economic growth forecast in July, with upcoming export data having the most effect on the change.
The lame-duck cabinet, which has already lost several members to the junta-picked Senate, approved a draft contract for the 225-billion-baht high-speed rail project linking three major airports. The consortium led by Charoen Pokphand Group is expected to sign the contract next month.
The SEC plans to amend the listing regulations for small and medium-sized enterprises, aiming to provide them more opportunity to raise funds from the capital market.
Exports of Thai-made automobiles and parts are unlikely to face penalty tariffs by the US because their export value is only 0.1% of total US imports, said the director-general of the Trade Negotiations Department.
Thanachart Bank, the country's largest auto lender, has thrown its support behind potential tougher loan standards being considered by the Bank of Thailand.
Minor International Plc (MINT) has reiterated its prospects have not changed even though its bid to operate commercial areas in Suvarnabhumi airport was rejected. Chaiyapat Paitoon, deputy corporate chief financial officer, said the company was committed to continuing to invest 64 billion baht from 2019-23 in both the domestic market and abroad as planned.
PTT Global Chemical Plc (PTTGC) will repurchase 50 million shares, equal to 1.1% of total issued shares through the stock market, in a bid to increase return on equity and earnings per share for stockholders.
Global Power Synergy Plc (GPSC) is considering delisting Glow Energy Plc from the stock market after GPSC purchased 95.25% of Glow's shares.
Alternative Energy Corporation Co (AEC) plans to list on the Singapore Exchange Co (SGX) in the first quarter of 2020 to raise capital for business expansion in renewable energy resources.
Bangkok Bank (BBL) expects to finalise its banking agent appointments this year after negotiations with several potential partners, including MAI-listed Forth Smart Service Plc, the operator of Boonterm top-up machines.
The developer Sansiri Plc is scheduled to hold a credit event in July to help customers examine their financial statements three months before receiving a transfer because borrowing ability is a major concern in the wake of stricter loan-to-value (LTV) limits that took effect in April.
Coming up: China, Germany and the US will release manufacturing PMI figures for May. On Wednesday, Australia will release first-quarter GDP growth data and the US will release non-manufacturing PMI for May.
Australia will release April trade figures on Thursday. The EU will announce its final reading on first-quarter GDP growth, with the European Central Bank holding a news conference. Elsewhere, the US and Canada will release trade figures for April. On Friday, Germany will release April trade data and the US will announce the latest non-farm payrolls.
Stocks to watch: DBS Vickers Securities Thailand recommends investing in fundamental stocks expected to report good second-quarter results. Suggested picks are AMATA, BBL, ERW, KKP and STEC.
Capital Nomura Securities advises an asset allocation strategy with stocks at 82.5% of the portfolio, gold at 12.5% and bonds at 5%. It recommends domestic plays, including BBL, AOT, CPALL, ROBINS, TU, CPF, ADVANC, CK, STEC, PYLON, AMATA, ERW, WHA and GULF.
Technical view: DBS Vickers Securities Thailand sees support at 1,580 points and resistance at 1,640. Capital Nomura Securities sees support at 1,614 and resistance at 1,632.
