Thai Stock Market Roundup July 26, 2019

– SET closed at 1,717.97 points, plunged 12.93 points or 0.75% with a trading value of THB 58.8 billion. Even though Moody’s had just upgraded Thailand’s rating outlook to “Positive” for the first time in 13 years, worries over less aggressive of Fed caused the regional markets to mostly close in negative territory. The plummet of Thai market was also the result of worries over a weak 2Q financial statement after the bank sector reported lower profit.

– Foreign Investors poured THB 4.34 billion along with a selling pressure from Institutions for a total of THB 361 million plunged SET by 13 points. Meanwhile, Individuals buy the dips for a total of THB 4.28 billion.

– TFI announced a halt production and lay off 30% of employee due to economic issues.

– AOT made a cut of ฿2.2 billion to end the dispute of leasing with “State Property”.

– Moody’s upgraded Thailand’s rating outlook to “Positive” for the first time in 13 years.

– Moody’s upgraded PTT’s outlook to “Positive” while maintained Baa1 ratings.

– Stocks in Focus on 26 July 2019: TU and WORK

Krungsri Securities recommend “BUY” TU, emphasizing IAA Consensus target price of ฿21.40/share, stating that earnings should grow in 2Q19 as lower tuna costs (-38% yoy) would lift GPM from 13.8% in 1Q19 to 16%. The positive growth momentum should continue into 3Q19.

Krungsri Securities recommend “BUY” WORK at a target price of ฿35.00/share, seeing that WORK is a turnaround and value stock. Krungsri Securities also states that earnings should continue to recover driven by the program reshuffling with improving ratings, especially for 10 Fight 10 program. WORK has ample cash in hand after authorities waived last two instalment payments for its license. WORK may pay extra dividends or invest in new businesses to drive future growth.

– SCC reported lower revenue, resulted in a 43% decline of profit to book at ฿7,044 million.

– Ignoring the plummet of SET, ILM jumped 4% to close the first trading day at ฿22.90.