Thai blue-chip and legacy stocks face an unprecedented crisis in 2020
As the economic ramifications of the coronavirus emergency continue to reveal itself around the world, blue-chip and legacy companies in Thailand have not been spared by the far-reaching pandemic.
Retail, hospitality, manufacturing, industry, it seems virtually every major sector of the Thai economy has been hit hard by Covid-19.
Here is how several major Thai companies have been affected by the virus: https://www.thaienquirer.com/14392/thai ... s-in-2020/
The question is then if the stock markets are way down and won't recover soon, banks are screwed due to massive unpaid debts, tourism is dead in the water, and exports are flat - why is the baht still so strong? manipulation? foreign currency reserves? the same "enigma" that has enabled the country to completely dodge CO19?
SET Watch: The Thailand Stock Market thread
Re: SET Watch: The Thailand Stock Market thread
Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? - Hunter S Thompson
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migrant
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Re: SET Watch: The Thailand Stock Market thread
I've long felt the baht is being manipulated. It's strength just doesn't make sense when you look at Thailands economic performance.
The proper function of man is to live, not to exist. I shall not waste my days in trying to prolong them. I shall use my time.
Re: SET Watch: The Thailand Stock Market thread
Yes, the ones that benefit most from it being strong are the billionaires and generals that run/own the country.
Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? - Hunter S Thompson
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migrant
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Re: SET Watch: The Thailand Stock Market thread
Who also make the rules my friend!!
The proper function of man is to live, not to exist. I shall not waste my days in trying to prolong them. I shall use my time.
Re: SET Watch: The Thailand Stock Market thread
Bank equities see plunge
Banking equities have become the worst performing sector in Thailand's stock market, with the aggregate share price plummeting by 35% year-to-date as asset quality and profit are anticipated to deteriorate amid higher bad loan prospects.
Asset quality concerns and regulatory risks have resulted in a negative outlook for banks as non-performing loans are poised to rise in the second quarter due to the economic slowdown. The Covid-19 crisis has caused corporate income to reduce sharply.
Concerns are amplifying over the risks of a reduction in the ceiling lending rate for consumer loans covering credit cards, personal loans, leasing and title loans, which are directly regulated by the Bank of Thailand.
Reducing the ceiling lending rate for consumers is considered an alternative measure to assist borrowers affected by the Covid-19 outbreak as some of the relief measures came to an end in June.
Besides a direct impact on the banking sector, non-bank companies will undeniably experience a similar, if not more severe, impact.
https://www.bangkokpost.com/business/19 ... see-plunge
Not surprising really when they've been dishing out money like candy over the past decade to those that clearly can't repay it. "Two million baht SUV when you earn 18k a month ... no problem!"
Banking equities have become the worst performing sector in Thailand's stock market, with the aggregate share price plummeting by 35% year-to-date as asset quality and profit are anticipated to deteriorate amid higher bad loan prospects.
Asset quality concerns and regulatory risks have resulted in a negative outlook for banks as non-performing loans are poised to rise in the second quarter due to the economic slowdown. The Covid-19 crisis has caused corporate income to reduce sharply.
Concerns are amplifying over the risks of a reduction in the ceiling lending rate for consumer loans covering credit cards, personal loans, leasing and title loans, which are directly regulated by the Bank of Thailand.
Reducing the ceiling lending rate for consumers is considered an alternative measure to assist borrowers affected by the Covid-19 outbreak as some of the relief measures came to an end in June.
Besides a direct impact on the banking sector, non-bank companies will undeniably experience a similar, if not more severe, impact.
https://www.bangkokpost.com/business/19 ... see-plunge
Not surprising really when they've been dishing out money like candy over the past decade to those that clearly can't repay it. "Two million baht SUV when you earn 18k a month ... no problem!"
Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? - Hunter S Thompson
Re: SET Watch: The Thailand Stock Market thread
Pandemic leads to exodus of B95bn from Thai bourse
More than 95 billion baht in capital flowed out of the Thai stock market in the first seven months of the year, partly because of the worsening pandemic, sputtering attempts to revive foreign tourism, and possibly a second year of economic contraction.
The pandemic situation in Thailand has rapidly worsened, with daily new infections exceeding 20,000 cases yesterday.
Amid uncertainty during the pandemic, the SET Index in July dropped by 4.1% from the preceding month. The worsening pandemic has undermined plans to reopen to vaccinated tourists and led to an exodus of funds from the Thai bourse this year, said Pakorn Peetathawatchai, president of the Stock Exchange of Thailand (SET).
However, the baht depreciation should help Thai exports to improve in the second half this year, he said.
https://www.bangkokpost.com/business/21 ... hai-bourse
More than 95 billion baht in capital flowed out of the Thai stock market in the first seven months of the year, partly because of the worsening pandemic, sputtering attempts to revive foreign tourism, and possibly a second year of economic contraction.
The pandemic situation in Thailand has rapidly worsened, with daily new infections exceeding 20,000 cases yesterday.
Amid uncertainty during the pandemic, the SET Index in July dropped by 4.1% from the preceding month. The worsening pandemic has undermined plans to reopen to vaccinated tourists and led to an exodus of funds from the Thai bourse this year, said Pakorn Peetathawatchai, president of the Stock Exchange of Thailand (SET).
However, the baht depreciation should help Thai exports to improve in the second half this year, he said.
https://www.bangkokpost.com/business/21 ... hai-bourse
Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? - Hunter S Thompson
Re: SET Watch: The Thailand Stock Market thread
And this is why I don't go anywhere near the Thai stock market ...
Thai regulators ban trading in JTS shares for 1 day on unexplained price swing
Jasmine Technology Solutions Plc (JTS) shares are being suspended on the Thai exchange on Wednesday, after its dramatic price movement triggered the highest level of market surveillance criteria.
Year-to-date, the stock has surged over 300 per cent. JTS began an unforeseen journey from 2 baht at the beginning of 2021 to 552 baht as of Tuesday’s closing, representing a jump of 27,000 per cent within 2 years.
“The prices have changed drastically without supporting fundamentals,” the Stock Exchange of Thailand (SET) stated in a statement, warning investors about volatility.
Under the trading alert, JTS shares are prohibited to net settlement, excluded from credit limit, and subject to cash balance. If trading resumes and the stock keeps fluctuating not in line with fundamentals, the SET will consider imposing one-day suspension periodically.
JTS president Dusit Srisangaoran later clarified that no advancement could be attributed to the unusual price fluctuation as asked by the regulators. “The company has not had any significant progress,” he said.
JTS is a telecom service provider which stepped into the Bitcoin mining business in July last year. The company said it has secured support from Thailand’s Provincial Electricity Authority and is in talks with power companies to use the leftover capacity to power up the miners.
https://www.thaienquirer.com/39534/thai ... ice-swing/
Thai regulators ban trading in JTS shares for 1 day on unexplained price swing
Jasmine Technology Solutions Plc (JTS) shares are being suspended on the Thai exchange on Wednesday, after its dramatic price movement triggered the highest level of market surveillance criteria.
Year-to-date, the stock has surged over 300 per cent. JTS began an unforeseen journey from 2 baht at the beginning of 2021 to 552 baht as of Tuesday’s closing, representing a jump of 27,000 per cent within 2 years.
“The prices have changed drastically without supporting fundamentals,” the Stock Exchange of Thailand (SET) stated in a statement, warning investors about volatility.
Under the trading alert, JTS shares are prohibited to net settlement, excluded from credit limit, and subject to cash balance. If trading resumes and the stock keeps fluctuating not in line with fundamentals, the SET will consider imposing one-day suspension periodically.
JTS president Dusit Srisangaoran later clarified that no advancement could be attributed to the unusual price fluctuation as asked by the regulators. “The company has not had any significant progress,” he said.
JTS is a telecom service provider which stepped into the Bitcoin mining business in July last year. The company said it has secured support from Thailand’s Provincial Electricity Authority and is in talks with power companies to use the leftover capacity to power up the miners.
https://www.thaienquirer.com/39534/thai ... ice-swing/
Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? - Hunter S Thompson
Re: SET Watch: The Thailand Stock Market thread
Foreign investors deterred by financial transaction tax
Enforcement of the financial transaction tax could give foreign investors a reason to exit the Thai stock exchange and focus on other bourses, according to investment analysts.
The tax on securities trades, which comes into effect next year, could drive foreign traders away as the levy lowers the liquidity of the Thai market, they said.
"The Thai stock market has an advantage over other markets in the region in terms of high liquidity. This appeal, however, is diminishing as a result of the planned tax," leading investor Niwet Hemwachirawarakorn told a forum hosted by the Federation of Thai Capital Market Organizations (Fetco) yesterday.
The tax will add trading costs to investors and reduce their interest in trading on the market, he said.
If more traders leave the market, companies will feel less inclined to join, as the market size will certainly shrink, said Mr Niwet.
https://www.bangkokpost.com/business/24 ... action-tax
Enforcement of the financial transaction tax could give foreign investors a reason to exit the Thai stock exchange and focus on other bourses, according to investment analysts.
The tax on securities trades, which comes into effect next year, could drive foreign traders away as the levy lowers the liquidity of the Thai market, they said.
"The Thai stock market has an advantage over other markets in the region in terms of high liquidity. This appeal, however, is diminishing as a result of the planned tax," leading investor Niwet Hemwachirawarakorn told a forum hosted by the Federation of Thai Capital Market Organizations (Fetco) yesterday.
The tax will add trading costs to investors and reduce their interest in trading on the market, he said.
If more traders leave the market, companies will feel less inclined to join, as the market size will certainly shrink, said Mr Niwet.
https://www.bangkokpost.com/business/24 ... action-tax
Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? - Hunter S Thompson
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handdrummer
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Re: SET Watch: The Thailand Stock Market thread
As usual, the land of everything done backward shoots itself in the foot.
Re: SET Watch: The Thailand Stock Market thread
After $1.8 Billion of Outflows, Asia’s Worst-Performing Stock Market Is Set for Election Boost
Thai investors are pinning their hopes on the general election to revive stocks in Asia’s worst-performing market this year, as parties across the spectrum promise tens of billions of dollars in economic stimulus.
The benchmark SET Index has slumped 6.4% in 2023, defying expectations that it will repeat a rally seen in the run-up to prior elections. Instead, foreign investors have withdrawn nearly $1.8 billion as Thailand’s economic growth outlook lags that of its Southeast Asian peers, with the central bank’s tightening focus a key drag.
The unfavorable macro backdrop may be offset by optimism following the May 14 election, where surveys project opposition parties to win a majority to end nearly a decade of military-backed rule. Pheu Thai, which has an edge over others, has promised a cash handout, minimum-wage hikes and an array of measures to resuscitate the economy.
“The fiscal stimulus by the new government should further accelerate economic growth, fueling corporate earnings growth and share prices,” said Varorith Chirachon, executive director at SCB Asset Management Co., Thailand’s largest private money manager. “We still maintain our view for share prices to rally.”
https://www.bloomberg.com/news/articles ... tion-boost
They're assuming the junta will just roll over and allow another party to win and form a government. A dangerous assumption to make.
Thai investors are pinning their hopes on the general election to revive stocks in Asia’s worst-performing market this year, as parties across the spectrum promise tens of billions of dollars in economic stimulus.
The benchmark SET Index has slumped 6.4% in 2023, defying expectations that it will repeat a rally seen in the run-up to prior elections. Instead, foreign investors have withdrawn nearly $1.8 billion as Thailand’s economic growth outlook lags that of its Southeast Asian peers, with the central bank’s tightening focus a key drag.
The unfavorable macro backdrop may be offset by optimism following the May 14 election, where surveys project opposition parties to win a majority to end nearly a decade of military-backed rule. Pheu Thai, which has an edge over others, has promised a cash handout, minimum-wage hikes and an array of measures to resuscitate the economy.
“The fiscal stimulus by the new government should further accelerate economic growth, fueling corporate earnings growth and share prices,” said Varorith Chirachon, executive director at SCB Asset Management Co., Thailand’s largest private money manager. “We still maintain our view for share prices to rally.”
https://www.bloomberg.com/news/articles ... tion-boost
They're assuming the junta will just roll over and allow another party to win and form a government. A dangerous assumption to make.
Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? - Hunter S Thompson
Re: SET Watch: The Thailand Stock Market thread
Rates, weak currency continue to weigh on SET
The Bank of Thailand's policy rate hike of 0.25% and the weakening baht are pressuring the Stock Exchange of Thailand (SET) after the index already tumbled below the resistance level of 1,500 points, say analysts.
The Thai bourse opened lower on Wednesday after falling 0.88% to finish at 1,494 points on Tuesday amid concerns over an interest rate hike.
The index below 1,500 points is a negative technical sign, said Asia Plus Securities (ASPS), adding the bourse has slumped 10.5% this year.
Every quarter-point rate hike has decreased average trading value by 4 billion baht per day based on past figures, said the brokerage. This rate increase will lower the year-end SET target by 66 points from 1,590 points to 1,524 points, said ASPS.
"There are so many risks for the stock market, including the threat of a US government shutdown, the Federal Reserve keeping its rate steady until mid-2024, and worse than expected US personal consumption expenditure figures due on Friday," said Pawarisa Lertkijkhunanont, ASPS's fundamental investment analyst on capital markets.
https://www.bangkokpost.com/business/ge ... igh-on-set
That's it, blame Uncle Sam!
The Bank of Thailand's policy rate hike of 0.25% and the weakening baht are pressuring the Stock Exchange of Thailand (SET) after the index already tumbled below the resistance level of 1,500 points, say analysts.
The Thai bourse opened lower on Wednesday after falling 0.88% to finish at 1,494 points on Tuesday amid concerns over an interest rate hike.
The index below 1,500 points is a negative technical sign, said Asia Plus Securities (ASPS), adding the bourse has slumped 10.5% this year.
Every quarter-point rate hike has decreased average trading value by 4 billion baht per day based on past figures, said the brokerage. This rate increase will lower the year-end SET target by 66 points from 1,590 points to 1,524 points, said ASPS.
"There are so many risks for the stock market, including the threat of a US government shutdown, the Federal Reserve keeping its rate steady until mid-2024, and worse than expected US personal consumption expenditure figures due on Friday," said Pawarisa Lertkijkhunanont, ASPS's fundamental investment analyst on capital markets.
https://www.bangkokpost.com/business/ge ... igh-on-set
That's it, blame Uncle Sam!
Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? - Hunter S Thompson
Re: SET Watch: The Thailand Stock Market thread
No confidence in Thailand's latest unelected leader then ...
Pundits say SET index could slip below 1,300
The Stock Exchange of Thailand (SET) index, which plunged to a three-year low on Wednesday, could slip further to below 1,300 points in the near term as foreign funds continue to exit, say analysts.
The Thai bourse seems to be immune to the recent rebound of other stock markets amid positive signs since last month, including declining inflation and interest rate trends, said Sorrabhol Virameteekul, senior vice-president of Kasikorn Securities.
The SET index fell by 1.16% on Wednesday to hit the lowest level since Nov 18, 2020.
"It seems that foreign investors, who account for as much as 40% of trading on the SET, have given up on the Thai market. They bought 190 billion baht worth of Thai stocks last year and already sold a volume worth 200 billion baht this year to date," he said.
Three main reasons Thai stocks have lost their appeal to foreign investors are uncertainties regarding the government's digital wallet scheme, potential payment defaults of 1 trillion baht worth of debentures next year, and lower than expected foreign tourist arrivals, said Mr Sorrabhol.
https://www.bangkokpost.com/business/in ... elow-1-300
Pundits say SET index could slip below 1,300
The Stock Exchange of Thailand (SET) index, which plunged to a three-year low on Wednesday, could slip further to below 1,300 points in the near term as foreign funds continue to exit, say analysts.
The Thai bourse seems to be immune to the recent rebound of other stock markets amid positive signs since last month, including declining inflation and interest rate trends, said Sorrabhol Virameteekul, senior vice-president of Kasikorn Securities.
The SET index fell by 1.16% on Wednesday to hit the lowest level since Nov 18, 2020.
"It seems that foreign investors, who account for as much as 40% of trading on the SET, have given up on the Thai market. They bought 190 billion baht worth of Thai stocks last year and already sold a volume worth 200 billion baht this year to date," he said.
Three main reasons Thai stocks have lost their appeal to foreign investors are uncertainties regarding the government's digital wallet scheme, potential payment defaults of 1 trillion baht worth of debentures next year, and lower than expected foreign tourist arrivals, said Mr Sorrabhol.
https://www.bangkokpost.com/business/in ... elow-1-300
Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? - Hunter S Thompson
Re: SET Watch: The Thailand Stock Market thread
Bourse sees foreign outflows of B68.9bn in first quarter
Foreign investors sold Thai stocks worth 68.9 billion baht in the first quarter, including 41.2 billion in March alone, attributed to the delay in expected US interest rate cuts, economic conditions and weaker operating results of listed Thai companies than firms listed on other exchanges, according to the Stock Exchange of Thailand (SET).
Senior executive vice-president Soraphol Tulayasathien said on Tuesday foreign investors returned to net selling in March, following their net buy of US$82 million in February, as the weakening baht caused them to delay investing in Thai stocks.
In Asia, there are markets with fund net inflows, such as India where the economic growth is high. Bourses in South Korea and Taiwan, meanwhile, benefited from growing domestic consumption as the technology industry is making a comeback.
https://www.bangkokpost.com/business/in ... st-quarter
Foreign investors sold Thai stocks worth 68.9 billion baht in the first quarter, including 41.2 billion in March alone, attributed to the delay in expected US interest rate cuts, economic conditions and weaker operating results of listed Thai companies than firms listed on other exchanges, according to the Stock Exchange of Thailand (SET).
Senior executive vice-president Soraphol Tulayasathien said on Tuesday foreign investors returned to net selling in March, following their net buy of US$82 million in February, as the weakening baht caused them to delay investing in Thai stocks.
In Asia, there are markets with fund net inflows, such as India where the economic growth is high. Bourses in South Korea and Taiwan, meanwhile, benefited from growing domestic consumption as the technology industry is making a comeback.
https://www.bangkokpost.com/business/in ... st-quarter
Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? - Hunter S Thompson
Re: SET Watch: The Thailand Stock Market thread
^^
Same story 3 months apart, but different excuses. Looking forward to next quarter.
Same story 3 months apart, but different excuses. Looking forward to next quarter.
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dundrillin
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Re: SET Watch: The Thailand Stock Market thread
I would have thought a weakening baht would have been a catalyst for foreign investors but perhaps they are expecting the baht to weaken further.buksida wrote: ↑Wed Apr 10, 2024 7:39 am Bourse sees foreign outflows of B68.9bn in first quarter
Foreign investors sold Thai stocks worth 68.9 billion baht in the first quarter, including 41.2 billion in March alone, attributed to the delay in expected US interest rate cuts, economic conditions and weaker operating results of listed Thai companies than firms listed on other exchanges, according to the Stock Exchange of Thailand (SET).
Senior executive vice-president Soraphol Tulayasathien said on Tuesday foreign investors returned to net selling in March, following their net buy of US$82 million in February, as the weakening baht caused them to delay investing in Thai stocks.
In Asia, there are markets with fund net inflows, such as India where the economic growth is high. Bourses in South Korea and Taiwan, meanwhile, benefited from growing domestic consumption as the technology industry is making a comeback.
https://www.bangkokpost.com/business/in ... st-quarter