BUSINESS NEWS:
State energy committee raises fund contribution by THB0.30/liter
The government will collect another 30 satang from each liter of benzene and diesel sold from tomorrow while assuring that pump prices will not go up.
The Energy Policy and Planning Committee decided today to collect another 30 satang a liter as a contribution to the state Oil Fund which will come into effect tomorrow.
The contribution is collected from every liter of diesel and benzene sold.
Energy Ministry Permanent Secretary, Pornchai Rujiprapha, however assures that the higher Oil Fund contribution would not lead to more expensive pump prices as he stated that refining margins carried by all oil business operators are still high enough to cope with an increase in the amount collected.
He added some one billion baht is expected to go into the Oil Fund each month after tomorrow.
At present, the state Oil Fund uses its reserves to subsidize the sales of alternative fuels such as gasohol and bio-diesel as well as LPG to make them more affordable for local consumers.
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FPO: “Details of new stimulus measures to be ready by end of Aug”
The Fiscal Policy Office expects to draw a conclusion on the new set of economic stimulus measures for the Finance Minister’s approval by the end of this month.
Fiscal Policy Office Director-General, Pannee Sathavarodom, said that the FPO is working on the details of a new set of economic stimulus measures which focus on the strengthening of tourism and SMEs businesses as well as the investment in basic infrastructures.
Pannee expects the suggested new policies to be presented to Finance Minister, Surapong Suebwonglee, for final consideration before the end of August.
She added that the new policies would roughly center on tax incentives for the tourism sector and the upgrade of competitiveness for S-M-E business.
The FPO chief stated that at the meeting of the economic ministers on August 27 which is the first of its kind since the Cabinet reshuffle earlier this month, there would not be any talk on new tax stimulus measures yet but it is expected that chief economic advisor, Virabongsa Ramangura, would make other suggestions on the issue to the meeting.
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World Bank expects Thai economic performance to stabilize in H2-08
The World Bank expects Thai economic performance in H2-08 to at best stabilize from the first 6 months of 2008.
World Bank economist, Kirida Bhaopichitr, said today there would be an official review of the Thai economic outlook and its GDP growth projection in November.
And ahead of the World Bank economic review, Kirida commented that recent fall in the world oil price would not lead to a speedy and drastic drop in inflationary pressure this year just yet unless energy price really continues to slip from now.
But she reckoned that the government economic stimulus measures should somewhat help halt the rise in inflation next year.
Kirida also suggested it is likely that the government would only be able to kick off the mega-project investment in 2009 with a few billion baht to be initially allocated. She expects this plan to lend marginal help in boosting the local economy as such an amount would represent no more than 2% of the country’s GDP.
However she believes that once the action is taken more employment would be made and directly spur private investment in Thailand.
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Energy Ministry expects selection of nuclear power plant project consultant before end of Aug
The government’s plan to build the country’s first nuclear power plant is taken to another level as the selection of the project consultant is expected to be completed by next week.
Energy Minister, Poonpirom Liptapanlop, said today the selection of the nuclear power plant construction project consultant would be concluded before the end of this month.
According to the country’s national power development master plan a 4,000-megawatt nuclear power plant will be built in the year 2020.
Such a capacity is equivalent to 10 per cent of Thailand’s power demand.
Poonpirom stated after the consultant has been selected further studies on location personnel and its effects on the country’s industry and economy will be conducted.
The process is expected to take two years, she said.
The Energy Minister also insisted that the most crucial step towards the nuclear power plant construction is to gain public acceptance and support.
A nuclear power plant is estimated to cost 3-4 billion U.S. dollars to build according to Poonpirom.
SET MONITOR:
Thailand’s main stock index rebounded on the last trading day of the week in thin trade.
The Stock Exchange of Thailand composite index went up more than 5 points to 681.9 with relatively light volume of less than nine billion baht or about 261 million dollars.
Foreign investors posted the biggest net sell of 236 million baht which is around seven million dollars followed by retail investors of 120 million baht or 3.5 million dollars.
Local institutions were then the only net buyer of 356 million baht. That’s roughly 10.5 million dollars.
The SET index closed up 0.80% led by buying into energy and banking stocks against sell-out in property and technology shares.
Analysts said the local bourse went up in a technical rebound following recent losses.
But light trade signifies a wait-and-see stance among investors who are counting on a speech by the U.S. Fed Chairman, Ben Bernanke later tonight, Thai time.
| Index Performance |
|
|
Last |
Change |
%Change |
High |
Low |
Volume
('000 Shares) |
Value
(M.Baht) |
|
SET Index |
681.93 |
+5.40 |
+0.80 |
682.66 |
676.19 |
2,067,557 |
8,859.73 |
|
SET100 Index |
1,036.38 |
+9.81 |
+0.96 |
1,037.42 |
1,025.65 |
1,300,107 |
7,171.11 |
|
SET50 Index |
480.77 |
+4.55 |
+0.96 |
481.39 |
475.59 |
252,445 |
5,823.36 |
|
FSTHL |
793.09 |
+7.53 |
+0.96 |
- |
- |
- |
- |
|
mai Index |
242.66 |
-1.43 |
-0.59 |
243.44 |
242.03 |
24,770 |
93.70 |
| Source: The Stock Exchange of Thailand. |
| Net Buy/Sell |
|
Investor Type |
Buy
(M.Baht) |
% |
Sell
(M.Baht) |
% |
Net
(M.Baht) |
|
Local Institutions |
1,894.78 |
21.16% |
1,538.34 |
17.18% |
356.44 M |
|
Foreign Institutions |
2,250.85 |
25.14% |
2,488.18 |
27.79% |
-237.33 M |
|
Retail Investors |
4,807.82 |
53.70% |
4,926.92 |
55.03% |
-119.11 M |
| Source: KGI Securities (Thailand) PLC. |
SET SPOTLIGHT:
THL share price rises healthily on the back of gold price surge to 10-day high
Share price of Tongkah Harbor rose more than 5% to 1.68 baht this morning as the global gold price went up more than 3% to 839 dollars an ounce in the latest trade session which is the highest surge in 10 days.
The weakening dollar was credited for higher gold price.
But Gold Traders Association of Thailand Chairman, Jitti Tangsitpakdee, warned that it is too early to be certain about the gold price direction and it should take at least one week before the picture can be clearer.
This evening, THL price retreated slightly and ended at 1.63 baht a share.
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PTTAR falls below 2-wk low following reports on upcoming maintenance at its refinery
PTTAR saw its price fall by more than 1% to its lowest level in more than two weeks at 22 baht on Friday morning after it is reported that the company is to temporarily shut down one of its refineries from time to time soon to perform a maintenance service.
PTTAR is yet to decide in a few days whether it will halt operation at all of its refineries for the same reason.
At the closing bell, its share price recovered to end at 22.20 baht apiece.
SET HILIGHT:
AH: Aapico Hitech
XD @ THB0.29 Payout 9 Sept 08
CPF: Charoen Pokphand Foods
XD @ THB0.08 Payout 11 Sept 08
BKI: Bangkok Insurance
XD @ THB2.75 Payout 12 Sept 08
SET DATEBOOK:
27 Aug 2008: Bank of Thailand Monetary Policy Committee Meeting
29 Aug 2008: Bank of Thailand Release of July Economic Data
SET Today: Weekdays 6:30 pm |