Expect the SET to move in a narrow range today with positive bias after the Fed's cautious stance on further rate increases prompted investors to rebuild their bets on riskier assets. However, upside is still limited by global growth concerns and appreciation in Asian currencies, including the Thai baht, hurting exports of these countries and this will continue if there is no monetary policy easing from the BOT. Locally, there are some positive news, such as decent dividends from firms listed on SET & MAI, Bt90bn to aid rural areas and launches in luxury residential projects yielding positive sentiment to the local bourse.
Local issue
Firms list on SET&MAI paid a record high dividend. A total of 406 firms listed on the Stock Exchange of Thailand (SET) and Market for Alternative Investment (MAI) announced combined dividend payments of Bt381.65bn for 2015 as of last Friday, an all-time high. The dividend payout ratio is 61% which generated a 2015 dividend yield of 3.55%, higher than 2.95% a year earlier. (The Nation)
Govt. to aid rural areas. The government is poised to earmark Bt90bn to support local development and ease the impact of the drought and slowing economy in rural areas. Deputy Prime Minister Somkid Jatusripitak said Bt60bn would be derived from the leftover funds of local administrative organizations and the remaining Bt30bn will come from the central budget for the 2016 fiscal year. (Bangkok Post)
Several luxury residential projects launched in 1Q16. Both condominiums and detached houses have been launched in the first quarter to serve the strong demand in this market aimed at the upper-income market. This is a way to boost presales of property firms in the first half of this year while the commercial banks are still reluctant to provide mortgages for the lower- and middle-income markets. According to the Agency for Real Estate Affairs, last year 460 homes costing more than Bt15mn each were sold, for a total value of Bt12.09bn with average price of Bt29.6mn. (The Nation)
MAKRO (Bt33.75) will allocate Bt6bn to expand its store network by opening ten branches this year, which will bring its total number of outlets to 108 nationwide. While the overall economic situation remains as sluggish as last year, its retail chain is not reeling from the negative effects because it sells staple goods. (Bangkok Post)
Global issues
BoE holds rates as expected with a vote 9-0, while the near-term outlook was little changed from its Feb inflation report. The BoE minutes said the significant proportion of recent decline in the pound reflected uncertainty over Brexit. (Reuters)
BoE holds rates as expected with a vote 9-0, while the near-term outlook was little changed from its Feb inflation report. The BoE minutes said the significant proportion of recent decline in the pound reflected uncertainty over Brexit. (Reuters)
The dollar tumbled against major currencies on Thursday extending declines triggered by Wednesday's dovish Federal Reserve statement in regard to the global growth outlook. U.S. dollar index fell more than 1.5% to a five-month low during the session. (Reuters)
Draghi says ECB rates to remain low or lower for an extended period of time and well beyond the end of the asset purchase program. (Reuters)
USA
Wall Street moved higher on Thursday, pushing the Dow into positive territory for the year, as commodity prices rose on the back of a weaker US dollar, after the Fed took a dovish stance, to boost shares in the energy and materials sectors. (Reuters)
Wall Street moved higher on Thursday, pushing the Dow into positive territory for the year, as commodity prices rose on the back of a weaker US dollar, after the Fed took a dovish stance, to boost shares in the energy and materials sectors. (Reuters)
US job market tightening. The number of Americans filing for unemployment benefits rose from a five-month low by 7,000 to a seasonally adjusted 265,000 for the week ended March 12. However, claims have now been below 300,000 for 54 weeks, the longest stretch since 1973. (Reuters)
Europe
Euro zone consumer prices fell 0.2% YoY in Feb confirmed-stats office, confirming its earlier estimate and economists' forecasts. (Reuters)
Euro zone bond yields fell on Thursday due to Fed's new rate guidance complicating the ECB's task of reflating the euro zone economy as a strong euro means cheaper imports that drag down inflation. (Reuters)
Asia
Asian shares edged higher on Friday, making Ex-Japan Asia MSCI turn positive for the year, while the US dollar weakened broadly after the Federal Reserve's cautious stance on further rate increases prompted investors to rebuild their bets on riskier assets including Asian equity markets. That echoed a recovery on Wall Street. Japanese shares bucked the trend as the dollar's fall against the yen is seen hurting the country's exporters. (Reuters)
Commodities
Oil prices hit 2016 highs on Thursday, with US crude surging 5% to pierce the US$40 barrier, on optimism that major producers will strike an output freeze deal next month amid rising crude exports and gasoline demand in the United States. The front-month in WTI futures settled up US$1.74, or 4.5%, at US$40.20, after scaling a 2016 high of US$40.26, while Brent crude's front-month finished up US$1.21 at US$41.54. (Reuters)
Oil prices hit 2016 highs on Thursday, with US crude surging 5% to pierce the US$40 barrier, on optimism that major producers will strike an output freeze deal next month amid rising crude exports and gasoline demand in the United States. The front-month in WTI futures settled up US$1.74, or 4.5%, at US$40.20, after scaling a 2016 high of US$40.26, while Brent crude's front-month finished up US$1.21 at US$41.54. (Reuters)
Gold turned lower on Thursday, consolidating from a 2.5% surge in the previous session when the Federal Reserve cut the number of interest rate rises it forecasts for this year, sending the dollar sharply lower. Spot gold was down 0.4% at $1,257.11 an ounce, after climbing 0.7% to $1,270.90. (Reuters)
Source: aws.co.th / settrade.com
