Expect the SET to trade higher today led by energy counters as oil rose after OPEC and non-OPEC groups set to meet on 17 Apr to discuss output freeze. However, market gains may be limited by hawkish comments from two Fed officials just a few days after Janet Yellen’s market friendly move last week. Most local factors today are positive. They are new tax incentives for Songkran to be contemplated by the Cabinet today and ten fast-tracked infrastructure projects to get off the ground under the current government.
Local issue
Proposal of tax incentive scheme for Songkran. Stimulus measures to spur domestic spending during Songkran will include a tax deduction of up to Bt15,000 for dining and travel expenses during 9-17 Apr and a Bt1,000 cash handout to low- and middle-ranking state officials and low-income earners, said Finance Minister Apisak Tantivorawong. The incentive packages will be proposed for the cabinet’s approval today. (Bangkok Post)
Ten infrastructure projects must begin under current government. Transport Minister Arkhom Termpittayapaisith yesterday said 10 delayed mass-transit projects must commence while the current military-led government is in power. The confidence comes from a faster consideration process, in which the state agency does not need to wait for the completion of the projects’ EIA review. (The Nation)
Commerce Ministry maintains 5% export growth forecast this year. To achieve that, the state will keep focusing on enhancement of Thai exporters’ competitiveness as well as product development. Further, the service sector will be given more promotion because of its high rate of expansion. Also, the ministry will lead Thai business operators to penetrate into foreign markets, especially CLMV countries as well as other places such as Iran, Africa, Central America, China, and India. (The Nation)
JAS (Bt3.68) defaulted on the 4G licence payment of Bt75.65bn yesterday. JAS’ CEO was not available for comment on Monday. The regulator will set up a special working panel and call an urgent meeting Wednesday to discuss penalties for JAS and plans for a new auction round and inform the prime minister thereafter. The regulator could now confiscate the guarantee JAS had placed before the auction worth Bt645mn and JAS may have to pay Bt160mn in compensation for auction operating expenses. The regulator may review existing fixed broadband and digital TV operating licences of JAS’ conglomerate. (Reuters) Comment: The fallout of this default should make the share price volatile in the short-term since it positively does not have to enter the market which is already highly competitive and JAS will come back to its existing fixed broadband business (FBB) with better returns but the penalties should negatively affect the share price. In the long-term, it should also be negative since JAS will likely lose significant market share to mobile broadband operators. Other telcos (ADVANC, DTAC and TRUE) should benefit from this news as there is no newcomer to raise competition.
Global issues
Producers from OPEC and non-members are due to meet on 17 Apr in Qatar to discuss the output freeze. However, Iran is still seeking to increase exports, following the lifting of Western sanctions in January. (Reuters)
Producers from OPEC and non-members are due to meet on 17 Apr in Qatar to discuss the output freeze. However, Iran is still seeking to increase exports, following the lifting of Western sanctions in January. (Reuters)
The dollar edged up on Monday, bouncing back from a more than 1% loss against major currencies last week as investors shook off dovish statements from the Fed. The dollar index rose 0.15% to 95.200 after falling for a third straight week. (Reuters)
US Treasury yields rose on Monday after two Fed officials gave bullish projections on inflation and as investors prepared for new corporate debt sales. Benchmark 10-year notes were last down 13/32 in price to yield 1.92%, up from 1.87% on Friday. The 10-year note's yields have fallen from a 1-1/2-month high of 2.00% on Wednesday. (Reuters)
USA
Wall Street shares ended slightly higher on Monday as a market-friendly move by the US Federal Reserve last week countered concerns on market valuation after a five-week rally. (Reuters)
US existing home sales fell sharply in February in a potentially troubling sign for America's economy which has otherwise looked resilient to the global economic slowdown. The National Association of Realtors said existing home sales dropped 7.1% to an annual rate of 5.08mn units, the lowest level since November. Economists had forecast home resales decreasing 2.8% to a pace of 5.32mn units last month. Sales were up 2.2% YoY. (Reuters)
Europe
European shares closed lower on Monday led by weaker commodity stocks. (Reuters)
European shares closed lower on Monday led by weaker commodity stocks. (Reuters)
Euro zone consumer confidence fell in March and defied market expectations of an improvement, a flash estimate by the EC showed on Monday. The Commission said consumer confidence in the 19 countries sharing the euro fell 0.9 points to -9.7 in March against February and was 0.7 points lower at -7.3 in the wider, 28-nation European Union. (Reuters)
Asia
Japan's government will consider front-loading some public works spending earmarked for the fiscal year beginning in April to support an economy skirting recession. The government's budget for the coming financial year, sized at a record ¥96.7tn (US$867bn), is set to pass both houses of parliament by the end of March. Once the budget is approved by parliament, Abe will tell his cabinet ministers to front-load about ¥10tn in public works projects set for the 2016/17 year. (Reuters)
China delists company for first time: The Shanghai Stock Exchange said on Monday that it had for the first time de-listed a company for violating disclosure rules. The exchange said that Zhuhai Boyuan Investment (600656.SS) had broken the rules on important matters of information disclosure. (Reuters)
Commodities
Oil prices rose about 1% on Monday as the OPEC and non-OPEC meeting has been set for 17 Apr and data showed crude inventories at the Cushing, Oklahoma delivery hub for US futures fell for the first time since January. Brent crude futures for May delivery, the front-month, settled up 34 cents (+0.8%) at US$41.54 a barrel. The US crude futures for May contract finished up 38 cents at US$41.52. Crude stockpiles in Cushing fell 570,574 barrels to 69.05mn in the week to March 18. (Reuters)
Oil prices rose about 1% on Monday as the OPEC and non-OPEC meeting has been set for 17 Apr and data showed crude inventories at the Cushing, Oklahoma delivery hub for US futures fell for the first time since January. Brent crude futures for May delivery, the front-month, settled up 34 cents (+0.8%) at US$41.54 a barrel. The US crude futures for May contract finished up 38 cents at US$41.52. Crude stockpiles in Cushing fell 570,574 barrels to 69.05mn in the week to March 18. (Reuters)
Gold fell on Monday, extending losses for a third day as the dollar arrested three weeks of falls, but the metal was underpinned by expectations that the ultra-low interest rate environment will persist. Spot gold was down 0.7% at US$1,246.32 an ounce. US gold futures for April delivery were down US$7.20 an ounce at US$1,247.10. (Reuters)
Source: aws.co.th / settrade.com
