Expect the SET to rise today after weekend polls showed the campaign to keep Britain in the EU regained momentum, reducing risk aversion and bolstering the pound. However, market gains should be limited as the overall picture remained one of an evenly split electorate moving into the referendum on Thursday. Sharp gains in oil should boost energy shares. Many positive issues arising from last week’s CLMVT Forum that will benefit the region as a whole include joint efforts to push CLMVT as a single tourist destination and establishing a business council and data centre. The SET is exploring new investment instruments to benefit each country and the region.
Local issue
Push on CLMVT as single tourist destination. Senior tourism officials from the five nations in the Greater Mekong Sub-Region have announced a joint plan to develop CLMVT as a single destination, highlighting the countries’ similarities as well as their unique cultural and natural heritages on the international stage. The countries plan to mutually set up common action plans, increasing transportation connectivity, and marketing development in order to promote joint tourism products. (The Nation)
Push on CLMVT as single tourist destination. Senior tourism officials from the five nations in the Greater Mekong Sub-Region have announced a joint plan to develop CLMVT as a single destination, highlighting the countries’ similarities as well as their unique cultural and natural heritages on the international stage. The countries plan to mutually set up common action plans, increasing transportation connectivity, and marketing development in order to promote joint tourism products. (The Nation)
“Knowledge tank” to be established. During the CLMVT Forum, the five member countries agreed on setting a joint business council and establishing a “knowledge tank” among other initiatives. Commerce Minister Apiradi Tantraporn said a regional knowledge tank needs to be developed as a one-stop data platform in order to provide information on trade and investment allowing users to easily gain access over the internet. (Bangkok Post)
SET seeks CLMV dealings. The Stock Exchange of Thailand (SET) is exploring new investment instruments to attract companies from Cambodia, Laos, Myanmar and Vietnam to mobilize funds, considering based on how to develop products that will provide mutual benefits for the CLMV and Thai markets. (Bangkok Post)
PTT (Bt317.00) has reviewed the company’s investment plan to reflect the operation and current circumstances as well as effective budgeting by reducing the 2016 investment plan from Bt50.8bn to Bt43.3bn, mainly from the revision of investment projects of natural gas and infrastructure business. (SET)
AP (Bt6.70) has targeted becoming one of the country’s top three residential developers by 2021, when it hopes to generate revenue of Bt50bn, CEO, Anuphong Assavabhokhin said. Currently, AP ranks in the top 10 listed property firms in terms of revenue, generating revenue of Bt4.22bn and net profit of Bt454.78mn in 1Q16. The company targets revenue of Bt23.7bn for the year 2016. Four business groups have been established: one each for detached housing and townhouses, and two covering different segments of the condominium market. The new set-up will drive growth in all of AP's business categories. (The Nation)
Global issues
The overall picture regarding the Brexit vote continued to show a nearly even split electorate, and volatility in international financial markets was expected to rise into Thursday's vote. Weekend polls showed the campaign to keep Britain in the EU regained momentum. Previous polls showing an increased probability that Britons would vote to leave the EU have rattled markets in recent days as investors worried about the implications to the global economy. (Reuters)
US benchmark Treasury yields rose on Friday for the first time in nearly two weeks as investors repriced the odds that Britons will vote next week to exit the EU. Benchmark 10-year Treasury notes fell 16/32 in price to yield 1.618%. It was the first increase in 10-year yields since 6 Jun. (Reuters)
Sterling rose by more than 1% against the US dollar on Friday as traders evaluated whether the killing of pro-EU British Member of Parliament Jo Cox may alter the balance of opinion in Britain's referendum on EU membership. The pound was last up 1.06% against the dollar at US$1.4350, up from Thursday's lows of US$1.4010. It rose as high as US$1.4387 on Friday, its highest in a week. (Reuters)
Police charge suspect in slaying of UK MP Jo Cox: Police on Saturday charged a 52-year-old man with the murder of a lawmaker Jo Cox following an attack. Thomas Mair is charged with killing Cox, 41, a member of the leftist opposition Labour Party and supporter of Britain staying in the EU, who was shot and stabbed to death in the street in her own electoral district in northern England on Thursday. (Reuters)
USA
Wall Street shares finished lower on Friday as investors positioned for Britain's vote next week on its EU membership. For the week, the three indexes each posted declines of at least 1%, with the Nasdaq falling nearly 2%. Apple dragged down the market after Beijing's intellectual property regulators barred sales of iPhone 6 and 6 Plus, saying the designs had infringed a Chinese company's patent. (Reuters)
Wall Street shares finished lower on Friday as investors positioned for Britain's vote next week on its EU membership. For the week, the three indexes each posted declines of at least 1%, with the Nasdaq falling nearly 2%. Apple dragged down the market after Beijing's intellectual property regulators barred sales of iPhone 6 and 6 Plus, saying the designs had infringed a Chinese company's patent. (Reuters)
US housing starts slipped in May as the construction of multi-family housing units dropped, but further gains in building permits suggested a rebound that would continue to support economic growth in 2Q16. Groundbreaking fell 0.3% to a seasonally adjusted annual pace of 1.16mn units. Starts in April were little changed at a 1.17mn-unit pace. Economists had forecast housing starts falling to a 1.15mn-unit pace last month. Building permits rose 0.7% to a 1.14mn-unit rate last month. Permits for the construction of single-family homes fell 2.0% last month to a 726,000-unit rate, while multi-family building permits increased 5.9% to a 412,000-unit pace. (Reuters)
Europe
European shares rose on Friday, with Greek equities among the best performers, led by a rebound in battered bank stocks. The suspension of campaigning for Britain's referendum on EU membership also eased some of the selling pressure markets saw this week. The campaigns halted after a pro-EU British politician, Jo Cox, was killed on Thursday by a man wielding a gun and knife. (Reuters)
Asia
Japan's exports fell 11.3% YoY in May as a strong yen and lacklustre growth in emerging markets curb demand for Japanese goods. The fall was more than a 10.4% decrease expected by economists. It followed a 10.1% YoY decline in April. Imports fell 13.8%, matching the median estimate. The trade balance came to a deficit of ¥40.7bn (US$389.10mn), versus the median estimate for a ¥40.0bn surplus. (Reuters)
Japan's exports fell 11.3% YoY in May as a strong yen and lacklustre growth in emerging markets curb demand for Japanese goods. The fall was more than a 10.4% decrease expected by economists. It followed a 10.1% YoY decline in April. Imports fell 13.8%, matching the median estimate. The trade balance came to a deficit of ¥40.7bn (US$389.10mn), versus the median estimate for a ¥40.0bn surplus. (Reuters)
China's home prices rose at a faster pace in May, supported by quicker growth in second-tier cities and a broader recovery in smaller cities. Average new home prices in 70 major cities climbed 6.9% YoY last month, accelerating from April's 6.2% rise, data from the National Statistics Bureau showed on Saturday. The NBS data showed 50 of 70 major cities tracked by the NBS saw year-on-year price gains, up from 46 in April. (Reuters)
China ordered at least 255 Shanghai-based industrial facilities to shut for 14 days to reduce pollution ahead of the G20 summit scheduled during the first week of Sep. The Shanghai Environment Protection Bureau has ordered a wide range of companies from power and petrochemical plants to logistics firms to shut down between 24 Aug and 6 Sep for the upcoming G20 meet in Hangzhou. Authorities in neighbouring Zhejiang and Jiangsu province are set to issue similar orders to limit air pollution and safety hazards within a 300 km radius from Hangzhou. (Reuters)
Commodities
Oil prices jumped about 4% on Friday, as a weaker dollar and less anxiety about Britain's possible exit from the EU encouraged investors to buy riskier assets. Brent crude futures' front-month contract settled up US$1.98 (+4.2%) at US$49.17 a barrel. The front-month in US crude futures rose US$1.77 (+3.8%) to settle at US$47.98. It fell US$1.80 in the previous session. (Reuters)
Oil prices jumped about 4% on Friday, as a weaker dollar and less anxiety about Britain's possible exit from the EU encouraged investors to buy riskier assets. Brent crude futures' front-month contract settled up US$1.98 (+4.2%) at US$49.17 a barrel. The front-month in US crude futures rose US$1.77 (+3.8%) to settle at US$47.98. It fell US$1.80 in the previous session. (Reuters)
Gold rose more than 1% on Friday, supported by a softer dollar and cautious interest rate comments by a voting Fed policy member, and was headed for a third week of gains. Spot gold was up 1.2% at US$1,293.80 an ounce. Bullion has risen 1.5% so far this week. US gold for August delivery settled down 0.3% at US$1,294.80 an ounce, well below Thursday's peak of US$1,315.55, the highest since August 2014. (Reuters)
Source: aws.co.th / settrade.com
