Wall Street spurs global revival, SET advances 1.2%

Wall Street spurs global revival, SET advances 1.2%

Recap: Global stock markets rebounded in line with upbeat sentiment on Wall Street after the US House of Representatives approved a Republican tax-cut plan and major US companies' quarterly results exceeded expectations. The Nasdaq reached a new high as tech giants outperformed.

On the domestic front, the SET index moved in a wide range between 1,680.53 and 1,711.49 points and jumped 18.13 points yesterday to end the week at 1,709.38, up 1.2% from the previous week, in heavy trade averaging 57.51 billion baht a day.

Foreign investors were net sellers of 6.04 billion baht. Brokers bought 87.11 million baht, while institutional investors bought 4.87 million and retail investors bought 1.07 billion baht worth of shares.

Newsmakers: US House Republicans passed a controversial overhaul of the US tax code that slashes corporate rates. Thursday's vote came after President Donald Trump made a rare visit to Congress to rally lawmakers around the plan. The Senate is still working to build support for its own version of the bill, but one Republican has said he is a "no".

European regulators have warned banks working on post-Brexit plans that they will "need to have substance locally" to serve European clients. The European Central Bank said some of the proposals it has reviewed are inadequate and risk creating "empty shells". Many banks currently gain access to the European market through UK offices.

From home construction to industrial output, China's economic momentum broadly cooled last month as the country continues to shift focus from national growth targets toward more sustainable development.

The Japanese economy grew for a seventh consecutive quarter, the longest streak since 1999. GDP expanded 1.4% year-on-year in the three months to Sept 30, according to a preliminary estimate published on Wednesday.

The strengthening of the baht is in line with regional currencies, driven by a weaker US dollar, Bank of Thailand governor Veerathai Santiprabhob said on Thursday, as the currency hit a 30-month high against the greenback. The baht has been threatening to breach 33 per dollar this week and has appreciated by 8.5% so far this year, the second best performer among Asian currencies.

The Finance Ministry has lowered the Stock Exchange of Thailand's seed funding requirement to 5.7 billion baht and annual contribution to at least 90% of net profit after deducting investment to the Capital Market Development Fund, according to a paper released after a public hearing held by the SEC.

Thailand ranks eighth out of 10 countries in the Digital Trust Index in Asia-Pacific, according to the Fraud Management Insights 2017 study. Thailand scored a mere 2.3 out of 10 because of a high rate of fraud, while customers said they did not receive adequate help after experiencing fraud.

Embattled Group Lease Plc on Tuesday reported a consolidated net loss of 2.61 billion baht in the third quarter because of reserves set aside for potential losses on asset revaluation and fraud charges.

The struggling luxury property developer Pace Development Corp Plc reported a consolidated net loss of 961.7 million baht in the third quarter, widening 20% year-on-year, because of a decline in gross profit of the company's Dean & DeLuca food and beverage business. The net loss was 798.7 million baht in the same period last year.

Thai Airways International reported a net loss of 1.82 billion baht in the third quarter, incurred from asset impairment and foreign-exchange loss.

PTT Plc posted a net profit of 22.3 billion baht in the third quarter, down 17% on the year and 28% from the second quarter. The decline was due largely to an impairment loss from a delayed project in Canada and lower production by PTT Exploration and Production Plc.

Charoen Pokphand Foods Plc (CPF), the country's largest food producer, reported 8% year-on-year growth in sales revenue for the first nine months, buoyed by overseas operations.

Nation Broadcasting Corporation (NBC) and Channel 3 operator BEC World Plc were hit hardest by the impact of TV channel proliferation and tepid advertising in the third quarter.

BCPG Plc, the renewable power arm of state majority-owned Bangchak Corporation Plc, has developed a mobile application that allows clients to buy and sell power they generate in their community.

Coming up: The National Economic and Social Development Board will release Thailand's official third-quarter economic figures on Monday. A Reuters survey of economists estimates third-quarter GDP expanded by 3.8% year-on-year, up from 3.7% in the second quarter.

Also on Monday, Japan will release October trade data, Germany will release October producer prices and the US will release Conference Board economic indicators.

The US will release second-home sales data on Tuesday, followed by a consumer confidence index update and weekly oil inventory data on Wednesday. Also on Wednesday, the US Federal Reserve will release minutes of its Oct 31-Nov 1 meeting, and the EU will release its consumer confidence index for November.

Stocks to watch: DBS Vickers Securities has buy recommendations on AMATA and RJH. For dividend plays, it recommends DIF, KKP, SENA, TMT, ERW, SPALI and TMB.

Bualuang Securities recommends stocks that could benefit from government economic stimulus measures including SINGER, SPI, ROBINS, WHA, WHAUP, TICON, AMATA, EASON, SAT and AH.

Technical view: KT Zmico Securities sees support at 1,670 and resistance at 1,710. DBS Vickers Securities sees support at 1,660 and resistance at 1,710.

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