What happened this past week?

Its been a quiet week in terms of economic news and events, which is perhaps why markets have just been in a lull globally without major movements either way.

Positives:

  1. Thai government keeps VAT at 7% for another 2 years
  2. The transportation ministry will submit the Motorway project valued at Bt 114 bn to the cabinet
  3. US housing market continues to improve

Negatives:

  1. Red shirts amass outside Thailand’s constitution courts awaiting bail decision (which in the end was postponed)
  2. Thai Agriculture Ministry cut its growth forecast for this year from 4.5%-5.5% to 3.8%-4.8%
  3. Euro crisis has a strong negative impact on Thailand’s exports

Opportunity Days

The SET organises opportunity days which are sessions where public companies ranging across all sectors and market cap sizes provide an update on their business outlook and discussion of their latest financial results.

I highly suggest anyone in Thailand to simply go, sit down and listen to each company, its something I like to do every quarter.

Go to the SET’s website (http://www.set.or.th/set/oppdaybyperiod.do?language=en&country=US) to see a list of which companies are presenting and times/locations.

Hope to see you there!

Earnings earnings earnings!!!!

This long weekend I’m fairly certain every analyst covering Thai equities will have to update their models and what not, I know my team and I certainly are. A flurry of earnings were released today and the last day for earnings announcements are next Wednesday 15th August.

I’ve noticed some basic trends thus far but don’t quote me on it just yet:

The electronics (KCE, SVI) and automotive (SAT) sectors are reporting great YoY and QoQ numbers showing their recovery from the flood last year, although the caveat for the electronics sector is the slowing global economy b/c of the Euro austerity measures.

Commerce sector reported great figures but given their high P/E’s most movements were to the downside (BIGC)

Infrastructure related co’s i.e. contractors have performed well on the back of power plant projects, highways, government works etc.. (DEMCO, NWR)

Banks – still rocking n rolling, we like TCAP b/c of its link to the automotive sector and naturally SCB and KBANK, plus the fact that the entire sectors tax rate drops from 30% to 23% doesn’t hurt at all.

Tourism – Not bad at all! MINT, ERW, CENTEL’s occupancy #’s were high on the back of 1) finally no political trouble leading to 2) continued high tourism arrivals in Thailand (AOT)

Anyways time to revert back to updating the #’s have a great long weekend everyone!

 

 

Note: Please see disclosure as no comments are meant to be taken as investment advice