Management Trades – Weekly

Again a lot of transactions last week!

Notable Buys:

  • BLAND – I’ve been saying this whenever K. Anant’s name pops up in the management trades, if its below 0.70 he buys, above it he sells
  • Grammy – K. Paiboon enjoying the fact that only he has the rights to showcase the Euros in Thailand
  • SIRI – The president knows how to “cut costs” or in plain english stop siphoning money out and improve margins and profit from capital gains.
  • TGPRO – Now this is interesting…there’s been a major change in shareholders in this company over the past month, and now the managing director just purchased an additional ¬†THB 171 mn in shares, TGPRO is trading at a PE of 2x..but its in the steel sector…

Sells:

  • AAV – Thai Air Asia, on the day it lists management sells how much…THB 2.6 bn worth of shares, well done, nice con job, list at 16x PE, beg investors to buy your shares and then dump it in the market leading to the stock price dropping 11%.

Thailand’s inflation slows slightly

The Ministry of Commerce reported May inflation at 2.53% YoY, up from 2.47% YoY in April and inline with market estimates of 2.50% YoY. On a monthly basis, the May CPI rose a for a 5th month by 0.39% MoM, pressured by the 1.14% MoM increase in food and beverage product prices (33.0% of CPI), led by the rise in meat, poultry, fresh vegetables and eggs in the start of the hot season. Transportation and communication prices (26.8% CPI) dropped 0.75% MoM after domestic fuel prices dropped with lower oil prices with the impact from the government 3-month suspension of the oil fund collections in an attempt to relieve the burden on consumers.

 

So what?

The BOT meets again on the 13th June, we’re not expecting any fireworks and expect that the BOT will maintain its 3% policy rate. Any rate hike will not happen until (1) The BOT sees evidence of inflation above 3% and (2) That won’t happen until the latter part of 2H12.