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Economist and Hedge Fund Manager Shayne Heffernan of www.livetradingnews.com takes a look at Thailand Stock Exchange, General Engineering, Thai Union Frozen, Siam Commercial.

Charoen Pokphand Foods reported lower earnings in Thailand yesterday slowing the advance of the SET, the CP Foods earnings fell 56% and investors were not impressed with the high forecast given by company.. BTS Group fell as we predicted and will look for a level to consolidate as investor await more details on future Capex requirements and the dilution impact that may have on the share price.

Ananda Development, a Thai real estate developer focusing on housing near Bangkok’s subway system, launched an up to $213 million initial public offering on Monday, raising funds for new building projects and to pay down debt, according to a term sheet of the deal seen by Reuters.

The company is offering 1.33 billion shares at an indicative range of 4.2-4.9 baht each, putting the total deal at up to 6.52 billion baht ($213 million).

We will release a valuation of the Ananda IPO on the weekend, should you wish to be notified email when it is released shayne@heffcap.com.

In Global Economic News

The economic outlook remains poor for major economies though there are growing signs of stabilisation in Canada, China and the United States, the OECD said on Monday.

In its latest monthly report on the global economy, the Organisation for Economic Co-operation and Development said its composite leading indicator (CLI) for the 33-nation OECD held steady in September at 100.2 for the third month in a row.

The reading for the United States rose marginally to 100.9 from 100.8 in August, which the OECD said was indicative of growth stabilising in the world’s biggest economy.

China’s reading was steady at 99.4 for the fourth month in a row while Canada’s was also unchanged at 99.7.

However, in the euro zone, Germany’s outlook deteriorated with its reading slipping to 98.7 in September from 99.0 in August. France, meanwhile, saw its reading slip to 99.5 from 99.6.

“Compared to recent months where the CLI has pointed to a deteriorating outlook, tentative signs of stabilisation are also emerging in Italy,” the OECD said. Italy’s reading rose to 99.0 from 98.9.

The OECD’s reading for the euro zone as whole was stable in September at 99.4, but that the level still indicated a weak growth outlook.

A reading of 100 reflects the long-term average for each country.

SET Live Trading News Macro Chart

SOUTHEAST ASIAN STOCK MARKETS
Change on day

 Market             Current     Prev Close    Pct Move
 TR SE Asia Index*   415.16        414.14       +0.00
 Singapore          3007.57       3009.56       -0.07
 Kuala Lumpur       1637.59       1641.08       -0.21
 Bangkok            1294.50       1290.83       +0.28
 Jakarta            4318.59       4333.64       -0.35
 Manila             5470.70       5468.79       +0.03
 Ho Chi Minh         388.62        386.71       +0.49

Change on year

 Market             Current     End prev yr    Pct Move
 TR SE Asia Index*   415.16        346.30      +19.88
 Singapore          3007.57       2646.35      +13.65
 Kuala Lumpur       1637.59       1530.73       +6.98
 Bangkok            1294.50       1025.32      +26.25
 Jakarta            4318.59       3821.99      +12.99
 Manila             5470.70       4371.96      +25.13
 Ho Chi Minh         388.62        351.55      +10.54

Stock Market Volume (shares)

                 Current Volume    Average Volume 30 days
 Singapore         199,460,900          246,178,333      
 Kuala Lumpur      106,074,500          129,789,917

 Bangkok             4,601,368            6,767,915      
 Jakarta         2,653,327,000        3,591,451,467    
 Manila                128,399               94,184    
 Ho Chi Minh            41,906               37,892

General Engineering

The run forward on General Engineering looks like it is coming to an end, the chart shows the stock is over bought and some consolidation around .4 baht in the near term, after that it depends on how well the company can perform.

General Engineering Live Trading News Macro Chart

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Thai Union Frozen Products PCL

TUF still looks cheap in here, long term this is a quality International company that will expand with AEC and is worth owning long term.

TUF Peers T12M F12M F12M P/E 14.35 12.76 24.72 EV/EBITDA 11.00 9.34 14.65 Div Yield 3.1% 3.8% 2.8% EV/Sales 1.07 0.90 1.35 P/CF 16.89 14.54 14.57 P/B 2.24 2.03 5.83

Siam Commercial Bank

SCB is doing well and is one of the stocks worth owning in Thailand long term and still represents value investing. The recent ratings cuts on earnings were premature and unfounded, Asia’s banks have great potential for regional growth that was over looked as analysts reduced earnings targets.

SCB Peers T12M F12M F12M P/E 13.44 11.36 9.29 EV/EBITDA 10.31 9.35 7.74 Div Yield 2.6% 3.0% 4.1% EV/Sales 5.39 4.74 2.84 P/CF 3.76 – 164.28 P/B 2.62 2.23 1.39