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27 November 2014

Daily Market Outlook

1

Please see disclaimer on last page

Exports pushing ahead

Expect the SET to trade up today, as local optimism overcome

a global climate of consolidation. Locally, October’s strong

exports figure, as well as news regarding positive progress on

the FBA, will boost sentiments. Globally, macroeconomic

ambiguity, be it from underperforming US data or uncertainty

regarding ECB and OPEC policies, have led to consolidation in

equities and oil.

Local issues:

Thai exports strength. Thai exports increased 3.97% YoY in

October, the largest gain in 21 months, boosted by overseas

demand for vehicles and parts. Commerce Minister Chatchai

Sarikulya said exports last month totaled US$20.2bn, while

imports tumbled 4.88% YoY to US$20.1bn, leaving Thailand with

a US$32mn trade surplus. Comment: Trade surplus boost

growth, but in itself the fall in imports could signal faltering

local demand and/or fall in intermediate goods

foreshadowing future falls in exports.

FBA amendments approved. Commerce Minister Chatchai

yesterday held a briefing to provide clarity regarding the

amendments to the Foreign Business Act. Stating that he has

approved the amendments, the minister insisted the changes

simplified business procedures and facilitated trade and

investment and did not contain a more restrictive definition of

foreign ownership. The ministry expects to finalize amendments

in December and submit the bill to Cabinet early next year.

(Bangkok Post). Comment: As fears regarding more

restrictive ownerships are alleviated foreign investors – net

buyers over the last month – can continue their forward

looking bet on Thai stocks going into next year, providing

support for the SET.

BEAUTY targets 2015F revenue to increase from Bt1.3bn

estimate for this year with minimum 20% YoY growth driven by

branch expansion. BEAUTY plans to open 65 new branches next

year with Bt150-180mn CAPEX. BEAUTY is now in a negotiation

process with foreign partners to set up sale agents and

distribution channels in Indonesia and Malaysia, which should be

concluded by early 2015. (InfoQuest)

Thailand Research Department:

Mr. Warut Siwasariyanon (No.17923) Tel: 02 680 5041

Mr. Narudon Rusme, CFA (No.29737) Tel: 02 680 5056

Mr. Napat Siworapongpan (No.49234) Tel: 02 680 5094

Major Indices Close Chg %Chg

SET 1,591.00 -5.8 -0.4

SET50 1,069.11 -1.5 -0.1

SET P/E (x) 19.0

SET P/BV (x) 2.3

SET Div. Yield (%) 2.8

Dow Jones 17,827.75 +12.8 +0.1

S&P 500 2,072.83 +5.8 +0.3

NASDAQ 4,787.32 +29.1 +0.6

UK 6,729.17 -2.0 -0.0

Germany 9,915.56 +54.4 +0.6

France 4,373.42 -8.9 -0.2

Japan 17,383.58 -24.0 -0.1

South Korea 1,980.84 +0.6 +0.0

Hong Kong 24,111.98 +268.1 +1.1

China 2,604.89 +37.3 +1.5

Taiwan 9,122.39 +6.2 +0.1

Singapore 3,349.66 +4.7 +0.1

Malaysia 1,842.17 +3.6 +0.2

Indonesia 5,133.04 +14.1 +0.3

Philippines 7,356.59 +69.7 +1.0

Trading Summary Buy Sell Net

Institution 4,603 4,816 -214

Proprietary 5,707 4,046 1,661

Foreign 8,309 8,199 109

Individuals 41,977 43,533 -1,556

Total Trading Value 60,595 Btmn Most Active Value Value Close %Chg

MTLS 11,913 11.90 N.A. TRUE 3,485 11.80 -2.5 ITD 2,197 7.40 -6.9 CGD 2,134 2.26 -29.8 GEL 1,532 1.09 -14.8

Commodity Futures Close Chg %Chg

US Crude 73.69 -0.40 -0.54

Brent Crude 77.75 -0.58 -0.74

Gold 1,197.50 -0.30 -0.03

FX Rates Close Chg %Chg

USD/THB 32.76 -0.02 -0.07

EUR/USD 1.25 0.00 0.26

USD/JPY 117.73 -0.24 -0.20

USD/CNY 6.14 0.00 0.02

Source: Bisnews, Bloomberg

27 November 2014


2


Subscription for JASIF is expected next month, pending approval from the SEC.

The fund worth between Bt55bn and Bt57.75bn with 5.5bn investment units. JASIF

will invest in the ownership rights of TTTBB's 980,000-kilometre fibre-optic network,

of which 800,000 core kilometres will be transferred to JASIF in 2015, 90,000 core

kilometres in 2016, and another 90,000 core kilometres in 2017. TTTBB, and maybe

other operators, will also lease this network to provide broadband Internet services

nationwide. Its first year’s dividend yield is expected to be around 7.80-8.19% (net of

amortization). (The Nation, Post Today)

Global issues

Yesterday saw a return of global growth concern, as an unexpected weakness in US

data hurt performance on Wall Street. There was also continued consolidation ahead

of the US long holiday that begins tomorrow.

The VIX index continued to edge down, and closed at 12.11, down slightly from

Tuesday’s close at 12.25. (Reuters)

USA

Wall Street stocks edged up on Wednesday as market players saw the run of weak

US economic data as the reason for the Fed to delay hiking interest rates. Risk

appetite was also dampened ahead of the US Thanksgiving holiday on Thursday,

when US financial markets will be closed. Tech shares led the market up while the

energy sector was again the largest weight as crude prices continued to fall. (Reuters)

The US jobless claims last week rose to the highest level since September at a

seasonally adjusted 313,000, from 292,000 in the week before last. The 4-week

moving average of claims, however, remained below 300,000 for an 11th straight

week, a sign that the jobs market was improving. Economists polled by Reuters had

forecast claims falling to 288,000 last week. (Reuters)

The 10-year US Treasury yield eased again on Wednesday on the back of the

weaker US data, falling 3 basis points to 2.23% at one stage the lowest level since

October 23. The 2-year yield closed down 1 basis point at 0.51%. (Reuters)

The dollar fell against a basket of currencies on Wednesday as a batch of

disappointing US economic data raised concern that the world's biggest economy is

losing momentum. A holiday-shortened US trading week also dampened risk appetite.

The dollar index fell 0.35% to 87.615, below the nearly 4-1/2 year peak of 88.440

reached on Monday. (Reuters)

Disappointing US home sales data: The sales of US new single-family homes

gained 0.7% to a seasonally adjusted annual rate of 458,000 units, short of the

472,000-unit pace projected by analysts polled by Reuters. The National Association

of Realtors said its Pending Home Sales Index, based on contracts signed last month,

fell 1.1% to 104.1. Economists forecast a 0.5% rise last month. (Reuters)

US consumer sentiment rose in November to its 7-year high. The Thomson

Reuters/University of Michigan's final November reading on the overall index on

27 November 2014


3


consumer sentiment came in at 88.8, its highest reading since July 2007. It was up

from the 86.9 in October but slightly below the preliminary reading of 89.4. Despite the

uptick, it was below the median forecast of 90.0 among economists polled by Reuters.

(Reuters)

US durable goods orders rose 0.4% in October supported mainly by strong military

aircraft orders after falling 0.9% in September

Weaker-than-expected personal consumption and income: US personal

consumption increased 0.2% MoM in October while personal income rose 0.2% in

October. Both numbers were below market consensus forecast. (Reuters)

Europe

European equity markets managed to hold up well on Wednesday on

expectations of stimulus measures from the ECB. Money continued to pour into the

German DAX. German DAX closed up 0.55%; French CAC eased 0.2%; Milan closed

down 0.36% and Spanish IBEX closed 0.5% lower. London FTSE ended the day

around flat. (Reuters)

Commodities

Key commodity prices continued to be weighed by global growth concerns as

the slowdown in China has negatively impacted demand while supply is plentiful in

some of the key commodities. Iron ore fell to a fresh 5-year low at 68.00 down from

Tuesday's fix at 68.60. Copper was mixed with Lon copper down 0.45% while NY

copper was up 0.25% late in the US session. (Reuters)

Gold stabilized below US$1,200 an ounce on Wednesday, recouping early losses

on the back of a retreat in the dollar. Spot gold was at US$1,199.40 an ounce, little

changed from Tuesday, while US gold futures for December delivery were up US$1.10

an ounce at US$1,198.20. (Reuters)

Oil prices fell further on Wednesday after OPEC signaled that it would hold off

making any major production cuts this week. Brent futures were down 58 cents at

US$77.75 a barrel, having hit a low of US$77.30 in the session. US crude for January

was down 40 cents at US$73.69. (Reuters)

27 November 2014


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Mon Tue Wed Thu Fri

1 2 3 4 5

8 9 10 11 12

XD

CITY : 0.16 Bt

IRC : 0.6269 Bt

15 16 17 18 19

XD

UIC : 0.04728 Bt

December 2014

27 November 2014

CG Report

5


Corporate Governance Report of Thai Listed Companies (CGR). CG Rating by the Thai Institute of Directors Association (IOD) in 2013.

ADVANC BTS GRAMMY MCOT PTT SC SSI TMBAOT CIMBT HANA MINT PTTEP SCB SSSC TNITYASIMAR CK HEMRAJ NKI PTTGC SCC SVI TOPBAFS CPF ICC NOBLE QH SCSMG SYMC TRCBANPU CPN INTUCH PAP RATCH SE-ED TCAP TRUEBAY CSL IRPC PG ROBINS SIM THAI TTWBBL DRT IVL PHOL RS SIS THCOM TVOBCP DTAC KBANK PR S&J SITHAI THRE UVBECL EASTW KKP PRANDA SAMART SNC TIP VGIBKI EGCO KTB PS SAMTEL SPALI TISCO WACOALBROOK ERW LPN PSL SAT SPI TKT

2S ASP CHOW GBX JUBILE LRH NMG PPP SINGER TCP TOG UACACAP AYUD CM GC KBS LST NSI PREB SIRI TF TPC UMIAF BEC CNT GFPT KCE MACO NWR PRG SKR TFD TPCORP UMSAHC BFIT CPALL GL KGI MAJOR OCC PT SMT TFI TPIPL UPAIT BH CSC GLOW KKC MAKRO OFM PYLON SNP THANA TRT UPOICAKP BIGC DCC GOLD KSL MBK OGC QTC SPCG THANI TRU UTAMANAH BJC DELTA GSTEL KWC MBKET OISHI RASA SPPT THIP TSC VIBHAAMARIN BLA DTC GUNKUL L&E MFC PB SABINA SSF TICON TSTE VIHAMATA BMCL ECL HMPRO LANNA MFEC PDI SAMCO STANLY TIPCO TSTH VNGAP BWG EE HTC LH MODERN PE SCCC STEC TK TTA VNTAPCO CCET EIC IFEC LHBANK MTI PF SCG SUC TLUXE TTCL YUASAAPCS CENTEL ESSO INET LHK NBC PJW SEAFCO SUSCO TMILL TUF ZMICOASIA CFRESH FE ITD LIVE NCH PM SFP SYNTEC TMT TWFPASK CGS FORTH JAS LOXLEY NINE PPM SIAM TASCO TNL TYM

A ASIA CITY EASON HTECH KASET MJD PL SF SVOA TMI UOBKHAAV BAT-3K CMR EMC HYDRO KC MK POST SGP SWC TNDT UPFAEC BCH CNS EPCO IFS KCAR MOONG PRECHA SIMAT SYNEX TNPC UWCAEONTS BEAUTY CPL F&D IHL KDH MPIC PRIN SLC TBSP TOPP VAROAFC BGT CRANE FNS ILING KTC MSC Q-CON SMIT TCCC TPAC VTEAGE BLAND CSP FOCUS INOX KWH NC QLT SMK TEAM TPP WAVEAH BOL CSR FPI IRC LALIN NIPPON RCI SOLAR TGCI TR WGAI BROCK CTW FSS IRCP LEE NNCL RCL SPC TIC TTI WINAJ BSBM DEMCO GENCO IT MATCH NTV ROJNA SPG TIES TVD WORKAKR CHARAN DNA GFM JMART MATI OSK RPC SRICHA TIW TVIALUCON CHUO DRACO GJS JMT MBAX PAE SCBLIF SSC TKS TWZANAN CI EA GLOBAL JTS MDX PATO SCP STA TMC UBISARIP CIG EARTH HFT JUTHA PRINC PICO SENA SUPER TMD UEC

Corporate Governance Report disclaimer

The disclosure of the survey result of the Thai Institute of Directors

Association (“IOD”) regarding corporate governance is made pursuant

to the policy of the Office of the Securities and Exchange Commission.

The survey of the IOD is based on the information of a company listed

on the Stock Exchange of Thailand and the Market for Alternative

Investment disclosed to the public and able to be accessed by a

general public investor. The result, therefore, is from the perspective of

a third party. It is not an evaluation of operation and is not based on

inside information.

The survey result is as of the date appearing in the Corporate

Governance Report of Thai Listed Companies. As a result, the survey

result may be changed after that date, Asia wealth Securities Company

Limited does not conform nor certify the accuracy of such survey result.

Score Range Number of Logo Description

90 – 100

80 – 89

70 – 79

60 – 69

50 – 59

Below 50

No logo given

Excellent

Very Good

Good

Satisfactory

Pass

N/A

27 November 2014

Contact

6


This report has been prepared by Asia Wealth Securities Company Limited (“AWS”). The information herein has been obtained from sources believed to be reliable and accurate, but AWS makes no representation as to the accuracy and completeness of such information. AWS does not accept any liability for any loss or damage of any kind arising out of the use of such information or opinions in this report. Before making your own independent decision to invest or enter into transaction, investors should study this report carefully and should review information relating. All rights are reserved. This report may not be reproduced, distributed or published by any person in any manner for any purpose without permission of AWS. Investment in securities has risks. Investors are advised to consider carefully before making decisions.

Branch Address Phone Fax

Head Office 540 Floor 7,14,17 , Mercury Tower, Ploenchit Road, Lumphini,

Pathumwan Bangkok 10330

02-680-5000 02-680-5111

Silom 191 Silom Complex Building,21st Floor Room 2,3-1 Silom Rd.,

Silom, Bangrak, Bangkok, 10500 Thailand

02-630-3500 02-630-3530-1

Asok 159 Sermmitr Tower, 17th FL. Room No.1703, Sukhumvit 21

Road, Klong Toey Nua, Wattana, Bangkok 10110

02-261-1314-21 02-261-1328

Pinklao

7/3 Central Plaza Pinklao Office Building Tower B, 16th Flr.,

Room No.1605-1606 Baromrajachonnanee Road, Arunamarin,

Bangkoknoi, Bangkok 10700

02-884-7333 02-884-7357,

02-884-7367

Chaengwattana

99/99 Moo 2 Central Plaza Chaengwattana Office Tower, 22nd

Flr., Room 2204 Chaengwattana Road, Bang Talad, Pakkred,

Nonthaburi 11120

02-119-2300 02-8353006

Chaengwattana 2

9/99 Moo 2 Central Plaza Chaengwattana Office Tower, 22nd Flr.,

Room 2203 Chaengwattana Road, Bang Talad, Pakkred,

Nonthaburi 11120

02-119-2388 02-119-2399

Mega Bangna 39 Moo6 Megabangna, 1st Flr., Room 1632/7 Bangna-Trad

Road, Bangkaew Bangplee, Samutprakarn 10540

02-106-7345 02-105-2070

Rayong 356/18 Sukhumvit Road, Nuen-Phra Sub District, Muang

District, Rayong Province 21000

038-808200 038-807200

Khonkaen 26/9 Srijanmai Road, Tamboonnaimuang, Khon Khaen

40000

043-334-700 043-334-799

Chonburi 44 Vachiraprakarn Road, Bangplasoi, Muang Chonburi, Chonburi

20000

038-274-533 038-275-168

Chaseongsao 233-233/2 Moo2 1st Flr., Sukprayoon Road, Na Meung Sub-

District, Meung District, Chachoengsao 24000

038-981-587 038-981-591

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