Strong earnings drive stocks higher, but inflation is a concern


Recap: Global stocks rallied yesterday, helped by strong quarterly earnings on Wall Street, as surging energy prices raised concerns about a global energy and inflation crisis. Brent oil futures traded near $ 85 per barrel for the first time since October 2018.

The SET index traded in a range of 1,629.95 and 1,651.41 points this week before closing yesterday at 1,638.34, down 0.07% from the previous week, with a figure of average daily business of 86.44 billion baht.

Foreign investors were net buyers of 9.43 billion baht and brokerage firms bought 1.68 billion baht. Institutional investors were net sellers of 9.59 billion baht and retail investors unloaded 1.52 billion baht of shares.

Current actors: A sweeping corporate tax overhaul garnered support from 136 countries, as nations resolved major disputes over a global minimum rate and the end of new digital taxes that the United States deemed discriminatory against. their giants online.

  • US Treasury Secretary Janet Yellen said she was “confident” Congress would pass legislation to implement the global tax deal.
  • U.S. lawmakers on Tuesday approved a short-term bill to lift the country’s borrowing power, avoiding the threat of a very first default – but only for a few weeks.
  • Grunts in transportation and supply chains have led to rising prices and shortages of some products, but U.S. Treasury Secretary Janet Yellen on Tuesday urged Americans not to panic.
  • Brent oil futures topped $ 85 a barrel for the first time in three years amid an energy crisis fueling inflationary pressures and commodity prices. A gauge of six industrial metals also hit a record high on the London Metal Exchange.
  • Bitcoin hit $ 60,000 for the first time in six months yesterday, approaching its all-time high, amid reports from Bloomberg that the SEC had approved the launch of the first exchange-traded fund (ETF) based on contracts at term for cryptocurrency.
  • Gold was set to have its best week in nearly five months, with a weaker US dollar raising its appeal despite indications that the Fed will soon begin to cut back on asset purchases.
  • Asia-Pacific airlines have lost billions of dollars this year, with jets stranded in the Covid-19 transport freeze. Now, as some of the world’s strictest pandemic travel rules start to ease, they are increasing flights and ticket deals.
  • Policymakers at the Bank of Thailand believe the economy hit a low in the third quarter and will continue to recover, although uncertainty remains high, according to the minutes of their last meeting released on Wednesday.
  • The Bank of Thailand’s Puey Ungphakorn Economic Research Institute believes that growing differences of opinion between rival political camps could have an effect on Thailand’s future economic growth, as people’s trust in each other has declined over the years. over the past decade.
  • The three state tax collection departments – Revenue, Customs and Excise – did not meet their initial revenue targets for fiscal year 2021 which ended on September 30 due to the severe impact of the protracted pandemic.
  • The Revenue Ministry has considered lowering the income tax on foreign experts to 17% as part of measures to attract highly qualified professionals to work in Thailand, chief executive Ekniti Nitithanprapas said.
  • There will be no quarantine for fully vaccinated air travelers from five countries from November 1, and destinations in more provinces will be open to foreign tourists.
  • As of today, the number of dark red provinces for maximum Covid control will drop from 29 to 23, the nighttime curfew will be shortened and more businesses will be able to resume, the Center for Covid-19 said on Thursday. Situation Administration.
  • The Tourism and Sports Ministry plans to spend between 500 million and 600 million baht to host twin concerts in Bangkok and Phuket after it was confirmed that two superstars – Thai K-pop sensation Lisa and Italian tenor Andrea Bocelli – will perform to celebrate the reopening of the country.
  • Koh Samui’s sandbox program received positive feedback after the mandatory quarantine was lifted, with new bookings in the first 10 days of this month already exceeding the total since opening on July 15.
  • The Tourism Authority of Thailand (TAT) aims to build a private digital business over the next six months to support its digital transformation and help generate 2.4 trillion baht from spending travelers by 2023.
  • A digital innovation center covering 40,000 square meters of space is planned for Thailand Digital Valley, located in Si Racha district in Chon Buri, over the next 24 months.
  • Digital payments have quadrupled from pre-pandemic levels, the Bank of Thailand said on Monday, as the country’s longest wave of infections accelerates demand for online services.
  • The value of Thailand’s e-commerce market is expected to increase 6.1% to 4 trillion baht this year, driven by companies focusing more on the business-to-customer (B2C) field in the wake of the pandemic, according to the Electronic Transactions Development Agency.
  • The industrial sentiment index rose for the first time in six months in September thanks to an easing of restrictions on coronaviruses, while plans to reopen are expected to further boost the mood, an industry group said on Tuesday.
  • Thailand’s aggregate investment requests from January to September jumped 140 percent from a year earlier to reach baht 521 billion, already surpassing those of all of last year, the Bank said on Monday. investment agency.
  • The value of Thailand’s creative industries is expected to rise 3.5 percent to 1.51 trillion baht next year, according to the Creative Economy Agency (CEA).
  • The cabinet approved a proposal by the National Export and Import Bank of Thailand to grant baht 5 billion in loans to entrepreneurs to upgrade their machines and improve their software.
  • Covid-19 has catalyzed and accelerated a big disruption in the real estate market that was expected to occur over the next five to ten years, but will now happen sooner, said Jugkarut Ruangratanakorn, managing director of Chon Buri-based developer Ratanakorn Asset Co. .
  • Thai Airways International will resume full service on 36 foreign routes to destinations in Europe, Asia and Australia, most of them on October 31, in response to the government’s decision to reopen the kingdom to tourists on November 1.
  • BCPG Plc aims to develop electric vehicle infrastructure and provide energy solution services in Thailand and South East Asia.
  • PTT Exploration and Production Plc is preparing to offer Asia’s first digital bonds worth 5 billion baht next month, allowing people to invest through the Pao Tang wallet.

Future : New Zealand will release third quarter consumer prices on Monday and China will release third quarter GDP. The United States will release September industrial production on Monday, followed by September data on building permits and housing starts on Tuesday.

  • Japan will release September trade figures on Wednesday. The Eurozone, Britain and Canada will release inflation in September.
  • The United States will release data on employment and existing home sales in September on Thursday, and Canada will release new home prices in September. Japan will release September’s core inflation on Friday, Britain will release September retail sales and Germany will release October’s manufacturing PMI.

Actions to watch out for: SCB Securities recommends stocks performing well in the third quarter, including BBL, KBANK, BDMS and RJH, and stocks that should benefit from the easing of the foreclosure, including MINT, ERW, CRC and SPALI. For speculative trading, the broker suggests energy stocks that would benefit from rising oil and commodity prices in the short term, such as BCP, PTTEP, TOP and IVL.

  • Finansia Syrus Securities recommends investing in the downstream hemp business, as the stock prices of the upstream and mid-term hemp businesses are fully valued. Interesting downstream hemp stocks include OSP, CBG, and ICHI. For intermediary companies, the broker recommends RBF.

Technical view: DBS Vickers Securities sees support at 1600 points and resistance at 1660. SCB Securities sees support at 1627 and resistance at 1655.


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