Kaohoon’s Top News on May 13, 2021

Concerns over haircuts and intense interest competition drove financial sector stocks to edge lower yesterday (May 12). Recently, Srisawad Corporation (SAWAD), together with Government Savings Bank, reduced the annual percentage on a car loan to 10%-11%. Analysts anticipated a short-term impact on the market, as is typical during this phase of the market cycle.

 

Due to higher sales volume in the Olefins and Derivatives business unit, PTTGC returned to a net profit of 9,695 million. Meanwhile, the Extraordinary Meeting of the Board of Directors has resolved to approve the disposition of GPSC ordinary shares that are held by the company to PTT and SMH totaling 358 million shares, which is equivalent to 12.7% of the total issued and paid-up shares of GPSC, at THB 71.0 per share in the total amount of approximately THB  25,125 million.

 

MSCI Rebalance decreased the weighting of Thai stocks from 1.83% to 1.73%, prompting around 10.5 billion baht to flow out. SCG Packaging (SCGP) and Carabao Group (CBG) paraded to MSCI Global Standard instead of KBANK-F and DTAC following the index rebalance. Meanwhile, 8 new face stocks have been added to the MSCI Small Cap Index.

Analysts predicted that MSCI’s weight down on the market would put pressure on PTT, KBANK, DTAC, INTUCH, and CPN.

 

Bangkok Dec-Con (BKD) reported a net profit of 19.04 million baht in 1Q21, an increase of 1,460.78%, after recording an extraordinary item of 15 million baht due to the cancellation of trade in Gold Shores Co., Ltd. ordinary shares.

 

B.Grimm Power (BGRIM) posted a net profit of 611 million baht, growing 654.3%, from an improving industrial power plants (SPP). Singer Thailand (SINGER) reported a new record net profit of 140 million baht due to the improved NPL management, ensuring that the loan portfolio will exceed 10,000 million baht this year. Meanwhile, Stark Corporation (STARK)’s net profit was at 441.12 million baht, up 67.8 percent on the back of a high margin from a Vietnam investment.