Thai Stock Market Roundup July 05, 2019

– SET Closed at 1,731.23 points, increased 6.86 points or 0.40% with a trading value of THB 63,69 billion. Today SET index moved sideways and closed higher than yesterday without any positive factor to support. Currently, all eyes are on the U.S. job report which will be presented later today due to the report will affect the decision of FED interest rate.

–  Individuals lead the buying team along with Foreign Investors for a total of THB 4.17 billion, buoyed the market by 6.86 points or 0.40%.

– On 4 July 2019, there was a huge selloff from power generation stocks due to a rumor of the amendment of PDP 2018 to allow the electricity production of 51% from the government, and the involvement from the government would lower the opportunity of power plant operators to bid and invest in future projects. However, the rumors earlier had been proved to be just rumors after a source familiar to the matter stated that the PDP 2018 had already been approved by the cabinet. Today, most of the power generation stocks has been recovered again.

– Stocks in Focus on 5 July 2019: EA and Banking Sector
        –  The analyst expected the profit in 2Q2019 of Energy Absolute Public Company Limited (EA) to hit a new high at THB1,355 million, increasing by 20% QoQ and 36% YoY due to the wind power plant with a full quarter of revenue recognition, and the solar power plant which could produce more electricity in the past quarter. Hence, the analyst recommended “BUY” EA share with the target price at ฿62.00/share
         – The analyst has upgraded Banking Sector to Overweight (from Neutral) with four main reasons which are asset quality seem to be more resilience and more manageable, the sign of fee incomes (non-transactional fee) recovery, undemanding valuation and attractive yield play. Moreover, the analyst chose SCB and BBL to be the top pick among big banks and upgraded rating of KKP and TISCO to Outperform, but downgrade TCAP and KTB to Neutral.

– LPN invested ฿95.69 million in land purchase for the ฿600 million projects, expecting to launch in 3Q2019.

– SPA operated Spa-massage under “Let’s Relax” brand in 3 hotels, expecting to open in 2H19.

– JCK approved 50-year leasehold on Ratchaphatsadu land in Nakhon Phanom worth ฿1.4 billion and disposition of shares worth ฿646 million.

– Thai tourism in Jan-June generated ฿1.01 trillion from foreign tourists, expecting a rebound in 2H.

– ECF issued not exceeding ฿200 million debenture with a 2-year maturity date and 6.50% of interest rate, offering major shareholders and institutions on 25-30 July 2019.

– GCAP issued not exceeding ฿450 million debenture with a 2-year maturity date and 7% of interest rate, offering institutions and major shareholders on 30 July-1 August 2019 for working capital and refinancing 

Top 10 Most Impact Shares on July 05, 2019