1 week Ago
RECAP: Asian stocks rose yesterday, aiming to shrug off a lacklustre start to 2025, while the dollar was steady near a two-year high as investors fret about US interest rates staying higher for longer. Worries about tariffs and China's economy also kept a lid on gains. After finishing 2024 just above 1,400 points in thin trade on Monday, the SET index moved in a range of 1,378.
44 and 1,409.13 points for the week, before closing yesterday at 1,384.76, down 1.
2% from the previous week, with daily turnover averaging 32 billion baht. Retail investors were net buyers of 847.9 million baht, followed by institutional investors at 761.
4 million and brokerage firms at 9.25 million. Foreign investors were net sellers of 1.
6 billion baht. NEWSMAKERS: Chinese President Xi Jinping pledged to pursue "more proactive" macroeconomic policies in 2025, while expressing confidence that final figures for 2024 would show the 5% growth target being met. The central government has ordered local governments to accelerate cash distribution to poor citizens before Chinese New Year in late January.
President Joe Biden has decided to block the sale of US Steel Corp to Nippon Steel of Japan a deal worth $14.1 billion, according to three people with knowledge of the matter. The official White House announcement is due on Friday morning Washington time.
The Chinese yuan hit a 14-month low on the first trading day of the year while Chinese stocks and bond yields plunged, underscoring growing worries about the economy and a looming trade war before Donald Trump begins his US presidency this month. China's Caixin manufacturing purchasing managers' index (PMI) slowed to 50.5 in December from 51.
5 in November, emphasising the need for additional economic stimulus from the government. The services PMI was 52.2.
US Treasury Secretary Janet Yellen has informed Congress that "extraordinary measures" may be needed as early as Jan 14 to avoid default and protect US creditworthiness. US initial jobless claims fell to 211,000 last week, the lowest since March 2024, indicating a strong US labour market and increasing the likelihood that the Federal Reserve will leave interest rates unchanged at this month's meeting. Ukraine ended gas transit from Russia to Europe on Jan 1 after a five-year agreement expired.
Russia accounted for less than 10% of EU gas imports in 2023, compared with 40% in 2021. before Russia invaded Ukraine. Factory activity across much of Asia expanded in December as domestic orders and output improved, but weaker confidence and a sustained drop in export orders point to global risks ahead, according to a regional PMI compiled by S&P Global.
South Korea cut its economic growth forecast for this year to 1.8%, after 2.1% growth last year, reflecting the fallout from impeached President Yoon Suk Yeol's martial law debacle and worries about US tariffs.
Apple shares fell 2.6% on Thursday after it announcing iPhone price cuts of up to 500 yuan ($68.50) in China from Jan 4-7, aiming to protect slipping market share.
Shipments to China of foreign-branded smartphones, including iPhones, fell 47% year-on-year in November from a year earlier, according to a Chinese research firm. China's Alibaba Group Holding Ltd has agreed to sell its majority stake (78.7%) in the hypermarket chain Sun Art Retail Group to the the Chinese private equity firm DCP Capital for HK$1.
58 billion). BYD sold a record-breaking 514,809 new energy vehicles (NEVs) in December, bringing cumulative 2024 sales to 4,272,145 units, up 41.3% from 2023.
Tesla EV sales fell last year for the first time in more than a decade, as demand faltered and rivals including China's BYD gained pace. The company delivered 1.79 million cars last year, down 1% from 1.
8 million in 2023, despite repeated price reductions. Electric cars accounted for 89% of the new cars sold in Norway last year, pushing the country closer to reaching its goal of going fully electric by 2025. Mazda Motor Corp said it was on track to deliver more than 420,000 vehicles in 2024, a 16% rise, breaking a record set in 1986.
It aims to sell 450,000 vehicles this year. Mexico has announced new tariffs, targeting mainly goods from Asia, which could impact online retailers such as Shein and Temu of China. Goods arriving via courier companies in countries that do not have an international treaty with Mexico will face a duty of 19%.
Malaysia's communications regulator has granted WeChat and TikTok operating licences under a new social media law that took effect on Jan 1. The law, aimed at tackling rising cybercrime, applies to platforms with more than 8 million users in Malaysia. The Adani Group will exit from Mumbai-listed Adani Wilmar Ltd in a $2 billion deal by selling its stake in its consumer joint venture, as the conglomerate's flagship focuses on its core infrastructure businesses.
Singapore Airlines was the third most punctual airline in Asia-Pacific in 2024, behind Japan Airlines and All Nippon Airways, according to data released by Cirium, an aviation analytics company. Hutchmed (China), controlled by tycoon Li Ka-shing, is selling its 45% stakes in its health subsidiary, Shanghai Hutchison Pharmaceuticals, for $608 million as the Hutchison conglomerate looks to raise capital and pivot towards core operations at the drugmaker. Brazil assumed the rotating presidency of BRICS (Brazil, Russia, India, China, South Africa) on Jan 1, with key agenda items including strengthening Global South cooperation, reforming international governance and facilitating trade.
Thailand, Malaysia, Indonesia and Vietnam are among those joining the group as "partner countries". Uncertainty about the Thai economy has increased significantly, primarily due to the unclear impact of possible US economic policies, minutes of the Dec 18 Bank of Thailand policy meeting showed on Thursday. The Bank of Thailand has expressed concern about new car sales this year, after a dismal 2024 for the industry, expecting heightened uncertainty in line with the uneven recovery of the Thai economy.
Thailand's Manufacturing Production Index in November was down 3.7% year-on-year to 93.41.
Capacity utilisation in the first 11 months of 2024 averaged only 58.6%, pressured by automotive sector contraction, low purchasing power and high household debt, said the Office of Industrial Economics. Thailand has formally adopted the global minimum corporate tax, requiring multinational companies with revenue of 750 million euros (26 billion baht) or more to pay at least 15%, effective from Jan 1.
The government expects a selection panel to quickly conclude the process of picking a new chairman for the Bank of Thailand after previous nominee Kittiratt Na-Ranong was deemed unsuitable due to his ties with the ruling Pheu Thai party, Finance Minister Pichai Chunhavajira said on Thursday. More than 35 million travellers arrived in Thailand in 2024, spending 1.6 trillion baht from Jan 1 to Dec 29, the Ministry of Tourism and Sports said.
Chinese tourists topped the table at 6.7 million, followed by Malaysians (4.93 million), Indians (2.
12 million), South Koreans (1.86 million) and Russians (1.72 million).
The Excise Department is preparing to restructure excise tax rates on automobiles to support the transition from internal combustion engine (ICE) vehicles to future mobility technologies, including hydrogen-powered vehicles. The palm oil market faces uncertainty after Indonesia postponed the planned Jan 1 start of a 40% biodiesel blend mandate, up from the current 35% requirement. The National Cyber Security Agency (NCSA) says it is developing a framework for cyber fraud insurance to help organisations mitigate the risk of cybercrime activities.
The Thai Retailers Association said wholesale trade showed low growth of 1-3% last year, pressured by Chinese e-commerce platforms, while growth in the fashion-lifestyle and food-beverage sectors was 3-7%. The Energy Regulatory Commission says it is accelerating green electricity initiatives to attract 173 billion baht in data centre investment. It has announced Utility Green Tariff 1 (UGT1) electricity rates and opened registration for 600 megawatts of capacity on Jan 2.
The Securities and Exchange Commission (SEC) and Thai Bond Market Association have jointly revised debenture issuer and holder rights, effective from April 1, 2025. Kaset Nawamin-Ram Intra and Bang Na-Samut Prakan were the hottest Bangkok locations for property demand in 2024, ranking among the top three to five for single houses, townhouses, condos and luxury houses. Central Pattana said it broke countdown records by attracting over 1.
5 million participants to celebrate countdown events at its malls across Thailand. The CentralWorld Bangkok Countdown drew over 300,000 attendees. COMING UP: On Monday, Germany releases inflation data while the US reports services and composite purchasing managers index (PMI) updates.
Tuesday brings euro zone inflation, Canadian trade figures and US non-manufacturing PMI. On Wednesday, the Federal Reserve releases minutes of its December rate meeting. On Thursday, Japan releases household spending data.
On Friday, the US reports December non-farm payrolls, unemployment and wage updates, while China announces new loan data. Domestically, the Stock Exchange of Thailand on Wednesday will release December trading data. STOCKS TO WATCH: Asia Plus Securities recommends four groups of outstanding stocks worth investing in: Top picks for low volatility are AOT and BEM.
High-dividend stocks BBL and SIRI are recommended. Stocks that benefit from economic stimulus are led by ADVICE and BJC. Finally, among so-called Trump 2.
0 era stocks, RCL is the top pick. Finansia Syria Securities says investors should focus on domestic plays with strong Q4 2024 profit prospects. Picks for January include CRC, MASTER, NSL, SEAFCO and SHR.
Affiliate FSS International Advisory Securities Co recommends BA, CHG, CPALL, KTB, MTC, NSL, RBF, SEAFCO, SHR and WHA. TECHNICAL VIEW: Syrus Securities sees support at 1,370 points and resistance at 1,400. Kasikorn Securities sees support at 1,380 and resistance at 1,410.
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