Thailand Stock Preview: 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 email@example.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.
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
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.
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.
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.
Heffernan Capital Management
Business Development Director – Private Client Group,
3 Raffles Place #07-01
Bharat Building Singapore 048617
Tel: +65 6329 6408
Fax: +65 6329 9699
Shayne Heffernan Ph.D.
Economist/Hedge Fund Manager
Shayne Heffernan oversees the management of funds for institutions and high net worth individuals. He is also an active consultant working with Corporations around the World.
He is recognized as one of the leading Economists in South East Asia, as well as the preeminent authority on ASEAN. His opinions and forecasts are widely read by decision makers in the region and Internationally.
Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reached a peak of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.
Chinese Society of Economists
American Economic Society
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