RECAP: Shares in Asia rallied yesterday after robust earnings from tech giants Meta, Microsoft and Alphabet buoyed Wall Street, where the S&P 500 had its best day since the first week of the year.
Chinese stocks rose ahead of the long May Day holidays, with media, financials and consumer shares leading the gains amid positive recovery signs and strong earnings.
Thai shares moved in a range of 1,524.30 and 1,561.55 points this week before closing yesterday at 1,529.12, down 1.9% from the previous week, in daily turnover averaging 39.89 billion baht.
Retail investors were net buyers of 2.25 billion baht, followed by institutional investors at 632.9 million. Brokers were net sellers of 1.65 billion baht, followed by foreign investors at 1.23 billion baht.
NEWSMAKERS: US economic growth lost steam in the first quarter, the Commerce Department said, as the possibility of a mild recession brews while consumer spending weakens in the face of high interest rates. GDP expanded just 1.1% year-on-year, down from 2.6% in the fourth quarter of last year.
The US Treasury Department and other agencies have stepped in to coordinate urgent talks to rescue First Republic Bank as private-sector efforts have stalled. The bank said on Tuesday that depositors withdrew more than $100 billion last month, as fears grew that it could be the next to fail after Silicon Valley Bank and Signature Bank.
Credit Suisse said that 61 billion Swiss francs ($68 billion) in assets left the bank in the first quarter and that outflows were continuing, underscoring the challenge faced by UBS in rescuing its one-time rival. The bank also said customer deposits declined by 67 billion francs, with significant non-renewals of maturing time deposits.
Citigroup said its wealth management revenue in Asia surged 20% in the first quarter, backed by investment gains, insurance revenue and a jump in new private banking clients.
US consumer confidence fell to a nine-month low in April, led by a darkening outlook that augurs a recession beginning in the near future, a survey showed on Tuesday.
Bitcoin continued to flirt with $30,000 this week, as traders tapped into lingering concern about the health of US banks to make the case for the digital alternative.
Vietnam is preparing to lower its value-added tax to 8% from 10% until the end of the year. The move comes just four months after a round of cuts took place as stagnating exports weigh on the economy.
Pham Nhat Vuong, the founder and chairman of Vingroup and Vietnam's richest man, is going to give $1 billion of his own money to the group's electric vehicle unit VinFast, the Vietnamese conglomerate said Wednesday.
Singapore has increased taxes on residential property purchases, with foreign purchasers facing the biggest increase in levies, including a doubling in stamp duty to 60% of the purchase price.
The Indian automaker Maruti Suzuki plans to raise its production capacity by up to 1 million units to guard its leading domestic market share and propel expansion into Africa. Its annual capacity in India now stands at 2.25 million units.
Toyota Motor set a global annual output record in the financial year to March 31 as factory disruptions from global chip supply shortages and pandemic lockdowns eased. The world's largest automaker said on Thursday it produced 9.13 million vehicles, slightly above its target.
The Japanese beer maker Kirin Holdings will acquire the Australian natural health products firm Blackmores for A$1.88 billion ($1.24 billion). The offer represents a 23.7% premium to the last closing price of Blackmores shares.
Facebook parent Meta reported upbeat quarterly results with its first year-on-year revenue growth in 12 months, thanks to robust advertising spending in China. Revenue rose 3% to $28.6 billion.
Thai equities are Asia's worst performers this year, hammered by an exodus of foreign funds, inflationary pressures and rising interest rates ahead of the May 14 elections, a Bloomberg survey shows. The SET Index has declined 8% so far in 2023. Overseas traders have withdrawn almost $1.8 billion from Thai stocks, the biggest outflow in Asia this year after China and India.
The Thai Industrial Sentiment Index (TISI) rose to a decade-high of 97.8 points in March, from 96.8 in February and 94.1 in January, boosted by a rebound in domestic demand, production increases and improved performance.
The Bank of Thailand forecasts gross domestic product (GDP) will expand 3.6% this year, with expansion of 2.9% in the first half, despite a decline in exports of 7.1% year-on-year. Second-half growth should improve to 4.3%, helped by increased foreign tourist arrivals and private consumption.
The value of Thai exports fell for the sixth straight month in March, by 4.2% year-on-year to US$27.65 billion, while imports decreased by 7.1% to $24.93 billion, resulting in a trade surplus of $2.71 billion. For the first quarter, exports decreased by 4.5% to $70.28 billion, while imports decreased by 0.5% to $73.32 billion.
Thailand remains world's second largest rice exporter with export volume of over 1.4 million tonnes during the first two months of 2023, an increase of 38.2% from a year ago. Total value rose to 25.4 billion baht from 18.38 billion in the same period of 2022.
The manufacturing production index (MPI) in March contracted 4.56% from a year earlier, widening from 2.4% in February, as a global economic slowdown hurt exports.
Thailand consolidated its position as the top global condom exporter in 2022, a year when top buyer China reported its first drop in population in six decades. Thai condom exports worth $272.3 million last year accounted for 44% of the world market.
Average household debt for workers has hit a 14-year high, attributed to durable goods purchases, investment to create income and daily expenses. A survey by the University of the Thai Chamber of Commerce put the figure at 272,528 baht, up 25% from 217,952 baht in 2022.
Thawatchai Pittayasophon, deputy secretary-general of the Securities and Exchange Commission (SEC), has been appointed as the acting SEC secretary-general to succeed Ruenvadee Suwanmongkol, whose term ended on April 30.
The SET and the Thailand Futures Exchange (TFEX) plan to implement a new trading system from May 8, in line with international best practices and global trends.
SCG Packaging Plc (SCGP) is acquiring a 70% share in Starprint Vietnam JSC (SPV) for 1.53 billion baht to take advantage of positive prospects in Vietnam.
COMING UP: On Monday, the US will release the ISM Manufacturing Purchasing Managers Index (PMI) for April. Due Tuesday are a Reserve Bank of Australia policy decision and euro zone inflation figures for February. The US Federal Reserve will hold its rate meeting on Tuesday and Wednesday. Locally, the Commerce Ministry will update trade figures on Wednesday.
STOCKS TO WATCH: Finansia Syrus Securities (FSS) is optimistic about the boost the election is giving the economy, which has been on a clear recovery path. It maintains a year-end SET index target of around 1,700 points with top picks including BA, BDMS, CPALL and ICHI.
Asia Plus Securities has a positive view as funds are beginning to flow back into the Thai market. Results of listed companies announced so far were 17% better than the Bloomberg consensus forecast, it noted. The election, meanwhile, is helping to drive the performance of Thai stocks, especially large stocks with good fundamentals and high liquidity. Recommended stocks are SCC, SCGP, IVL, AOT, CPN, CPALL and BEM.
TECHNICAL VIEW: Finansia Syrus Securities sees support at 1,500 points and resistance at 1,545. RHB Securities (Thailand) sees support at 1,510 and resistance at 1,540.
