Thai Stock Market Roundup August 6, 2019

– SET closed at 1,671.48 points, rose 5.49 points or 0.33% with a trading value of THB 70.43 billion. Today the SET Index switched to close higher in the opposite direction of regional market. In the morning session, Thai stock market showed a volatility sign by plunging almost 20 points from the concern of Chinese yuan falling to 7 yuan / 1 dollar on 5 August 2019 for the first time since 2008. As a result, the global market showed concern after Trump claimed China for manipulating its currency and the U.S. Treasury labeled China a “currency manipulator” after the end of the trading session on Monday.

The Thai market started to rebound late morning after People’s Bank of China denied it was devaluing its currency in response to Trump’s latest tariffs, however, an official was quoted anonymously saying it was a reaction to tariffs. The Bank of China has announced the plan to limit yuan depreciation by selling 30 billion yuan or $4.2 billion of bills in Hong Kong on 14 August 2019. The move will drain liquidity of yuan offshore, making it more costly to short the Chinese currency.

– Institutions and Individuals net bought THB 4,094.28 million to buoy the SET close higher by 5.49 points while Foreign Investors sold the rips by THB 3,415 million.

– Stocks in Focus on 6 August 2019: ADVANC and BGRIM
      – The analyst stated that although the net profit in 2Q2019 of ADVANC was THB 7,725 million, decreased 3.5% QoQ, increased 1.5% YoY, it is better than the market had expected. Moreover, ADVANC also allocates a budget of THB 20-25 million for investing in 4G and fiber project and preparing for 5G, expecting to commence in October 2020.  KTBST said that ADVANC has a good cash flow. The current share price is traded at PE 21x, ROE 45%, with a dividend yield of 3.2%. Therefore, KTBST recommended “BUY” ADVANC share with the target price of ฿220.0/share.
      – The analyst expected the performance of BGRIM to grow continuously in 6-7 years from operating the solar power plants in Thailand, Laos, and Vietnam. As the result of operating solar power plants in the three countries, BGRIM’s capacity to produce electricity will increase to 3,245 MW in 2025 from 2,076 MW in 2018. Furthermore, BGRIM is negotiating to operate power plants in many countries, such as Korea, Taiwan, Philippines, and Malaysia based on the strength of BGRIM network in other countries. Therefore, the analyst recommended “buy for investment” BGRIM share with the target price of ฿39.00/share based on DCF method.

– TU reported a rise of 2Q2019 profit due to the decreasing in hey price materials.

– JAS 2Q profit plunged 40% after recording the high provision of 3BB and employee benefits.

– BCP established “Bangchak Ventures” in Singapore for the startup related to innovations.

– TPOLY acquired a construction project of “Bangkok Hospital Chanthaburi” worth ฿259.50 million.

Top 10 Most Impact Shares on August 6, 2019