Shares remain stable ahead of key Fed chief speech

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Recap: Global stocks stabilized at record highs yesterday as investors awaited a much-anticipated speech from Federal Reserve Chairman Jerome Powell that could shed light on when and how the Fed intends to start cutting its economic stimulus measures.

The SET index traded in a range of 1,565.93 and 1,615.22 points this week before closing yesterday at 1,611.2 for a gain of 3.74% – the largest weekly increase since mid -January – of the average daily turnover of 96.98 billion baht.

Foreign investors were net buyers of 13.41 billion baht, local institutional investors bought 8.07 billion baht, and brokerage firms bought 2.57 billion baht. Retail investors were net sellers of shares worth Baht 24.04 billion.

Newsmakers: The slow rollout of coronavirus vaccines will cost the global economy $ 2.3 trillion in lost production, according to a new report from The Economist Intelligence Unit.

The market consensus ahead of the Fed’s Jackson Hole Symposium was that the U.S. central bank could start cutting back on massive bond purchases as early as October, paving the way for an interest rate hike at the end of 2022.

World Trade Organization urged to step up role in tackling new trade barriers and paving the way for commodities essential to tackle Covid-19, such as vaccines, drugs, medical supplies and medical equipment.

US sanctions have taken a toll on Huawei’s smartphone industry, opening the door for Chinese rivals to gain market share. Xiaomi handset sales rose 83% in the second quarter, placing it in second place in the world behind Samsung.

Largest Asian companies are expected to post their first quarter-on-quarter profit decline in six quarters in the July-September period, with a consensus forecast of a 6.2% decline, according to a Reuters survey. The setback reflects the severe impact of new Covid lockdowns in many countries.

China has reopened a key terminal at the port of Ningbo-Zhoushan, the world’s third busiest cargo port, after a Covid shutdown caused significant delays elsewhere and worsened already prolonged export delays caused by the pandemic.

More than 40 IPOs on the Shanghai and Shenzhen stock exchanges have been halted as part of a regulatory investigation into several trading intermediaries, according to official information from the exchange.

Vaccine makers Pfizer and Moderna are set to record billions of dollars more in sales than expected as new recall strategies and concerns about the Delta variant drive demand, and companies increase prices in the United States. United and elsewhere.

Danish shipping giant AP Moller-Maersk says it is accelerating plans for an environmentally friendly fleet with the order for eight carbon-neutral container ships, a pioneering project in the heavy-polluting industry.

Wing Aviation, the drone delivery subsidiary of Google’s parent company Alphabet, is about to deliver its 100,000th package to a customer. This milestone represents further progress in testing in the United States, Australia and Finland.

Qantas is preparing to resume international flights, immobilized since March 2020, in December to countries with high vaccination rates, starting with the United States and Great Britain.

Thailand’s fiscal position remains strong and it can raise its public debt ceiling if necessary, Finance Minister Arkhom Termpittayapaisith said on Wednesday as policymakers debate how to fund more pandemic support if necessary.

The banking system in the second quarter remained strong with high levels of capital funding and loan loss provisions to deal with the impact of the pandemic, while bad debts were flat, the Bank of Thailand said on Monday.

The cabinet approved on Tuesday the extension of the value added tax (VAT) rate of 7% for a further period of two years.

Thai and Chinese authorities have agreed to launch the Thailand-Guangdong cooperation project to promote high-tech industries, including electric vehicles, as well as the green economy in the Eastern Economic Corridor.

Thai exports maintain their growth momentum, increasing 20.2% year-on-year in July, albeit from a very low base in 2020, despite ongoing Covid outbreaks.

Powered by the surge in exports in the first seven months of 2021, Commerce Minister Jurin Laksanawisit aims to increase fruit shipments this year to 180 billion baht, up more than 30% from the previous year. ‘last year.

Domestic car sales in July plunged 11.6% year-on-year to a seven-month low due to drastic lockdown measures.

The Department of Public Health will propose that on-site meals be allowed in restaurants and in dark red and red areas for customers who are fully vaccinated or have passed Covid tests.

Thailand’s second-quarter unemployment rate fell from a 12-year high in the previous three months, but Covid restrictions are likely to affect more jobs, the planning agency said on Wednesday. the state.

The government is urged to step up the implementation of more effective and intensive aid measures to help maintain employment and create jobs for new graduates.

The government plans to transform 10,000 rai in three provinces that form the Eastern Economic Corridor into herbal plantations growing cannabis, hemp and fa talai jone.

The Bank’s loans for agriculture and agricultural cooperatives in the first quarter of its fiscal year increased at a lower rate than the same period a year earlier, attributed to a slowdown in the economy, said President Tanaratt Ngamvalairatt.

The city of Pattaya appears unlikely to reopen to tourism on September 1 as planned, with local businesses blaming the delay on bureaucracy and slow deployment of the Covid vaccine.

SET-listed logistics company JWD InfoLogistics has partnered with Thailand Post and Flash Express to launch cold chain express delivery under the Fuze Post brand to capitalize on the 34 billion baht market.

Nok Air plans to add 5 billion baht of cash through a five-year rehabilitation plan starting next year as it prepares to move segments to a premium service.

The Bank of Ayudhya announced on Wednesday that it will acquire SHB Finance in Vietnam from Saigon-Hanoi Commercial Joint Stock Bank for 5.1 billion baht.

Krungsri Finnovate (KFIN), the corporate venture capital arm of Bank of Ayudhya (BAY), has launched a seed fund for high net worth investors interested in technology companies.

Coming up: Eurozone to release consumer confidence in August and the US to release pending home sales for July on Monday. The Bank of Thailand will release its monthly economic update on Tuesday, China will release the August manufacturing and services PMI, and the United States will release a consumer confidence update.

The United States will release August’s PMI and employment for non-farm employment and manufacturing on Wednesday. China will release August manufacturing PMI and Australia will release second quarter GDP.

The United States will release July non-farm productivity and trade figures for the second quarter on Thursday, along with August non-farm PMIs, unemployment and non-manufacturing PMI on Friday.

Actions to watch: Country Group Securities (CGS) recommends actions that will benefit from a loosening of the lockdown, including hotel groups CENTEL, M and MINT, retailers such as BJC, CRC and CPALL, mall developer CPN and BTS and BEM transport companies. Short-term recommended defensive stocks are communications companies like ADVANC and powerhouses like BCPG, BGRIM, GPSC and GULF.

Bualuang Securities has a positive outlook for JMART after successfully increasing share capital by 24.2% as part of a private placement by VGI and U, despite some dilution in EPS in the near term. In the long term, JMART is expected to invest part of the 10 billion baht raised in subsidiaries JMT and SINGER to generate profit growth.

Technical view: Maybank KimEng Securities sees support at 1,585 points and resistance at 1,640. Asia Plus Securities sees support at 1,600 and resistance at 1,620.


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