1

06 Nov 2014

Daily Market Outlook

Holding steady

Expect the SET to continue trade in a somewhat tight range today, but

adjust up to offset yesterday’s dip, on the back of local reassurance and

positive global news. Locally the MPC held rates as was widely expected

while data from the Europe and elections results from the US have both

boosted investors sentiment, creating a wave of restrained optimism likely

to benefit the SET today.

Factors to watch

Local issues:

MPC holds rate. As was widely expected, the Bank of Thailand (BOT)’s

Monetary Policy Committee (MPC) yesterday voted to maintain its policy

rate at 2% by an overwhelming majority of 6-1. The MPC urged the

government to continue accelerating budget disbursement and investment

plan, noting that as well as directly boosting growth, clear direction from the

government would provide strategic direction for private investment. (The

Nation)

Plan to wean consumers off fuel subsidies. The National Energy Policy

Committee will meet this month to consider implementing an energy reform

package that would further increase diesel and LPG prices. The NEPC’s

meeting to consider energy price reform has been moved up from

December, to capitalize on the recent fall of more than 20% in global world

oil prices. The prices for LPG used for transport and for cooking could also

be raised further but the net impact to the average consumer is expected to

be neutral. (The Nation)

EGAT infrastructure fund plan approved. The Superboard of state

enterprises yesterday constentede to the launch of a Bt20bn infrastructure

fund for the Electricity Generating Authority of Thailand. The fund is

expected to submit its application for an IPO with the SEC by end of 2014,

with plans to open for subscription early 1Q15. The fund would be the first

launched by a state enterprise and be backed by income for over 20 years

from EGAT’s North Bangkok power plant.

Rice scheme loss even higher than anticipated. Thailand Development

Research Institute (TDRI) has said loss incurred from rice-pledging scheme

could reach almost Bt1tn if offloading of the 18mn tons of milled rice in

stockpiles is done over 10 years. TDRI recommends fixing government’s

debt at no more than 20% of annual budget each year to avoid a repeat of

such losses in the future. Comment: Delaying selling the rice means

government has to borrow to finance its promised payments, but

offloading rice too quickly would depress export prices.

AIRA entered into the joint venture agreement with AIFUL Corporation (a

leading financial company from Japan) to establish AIRA&AIFUL PCL with

Bt1bn registered capital wishing to penetrate Thailand’s personal loan

market. AIFUL Corporation, AIRA and Thai investors hold 49%, 30% and

21% of this joint venture respectively.

Source: Bisnews, Bloomberg

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 1,577.40 -7.8 -0.5

SET50 1,050.60 -5.7 -0.5

SET P/E (x) 18.7

SET P/BV (x) 2.3

SET Div. Yield (%) 2.8

Dow Jones 17,484.53 +100.7 +0.6

S&P 500 2,023.57 +11.5 +0.6

NASDAQ 4,620.72 -2.9 -0.1

UK 6,539.14 +85.2 +1.3

Germany 9,315.48 +149.0 +1.6

France 4,208.42 +78.2 +1.9

Japan 16,937.32 +74.9 +0.4

South Korea 1,931.43 -3.8 -0.2

Hong Kong 23,695.62 -150.0 -0.6

China 2,420.40 -10.3 -0.4

Taiwan 8,962.60 -26.6 -0.3

Singapore 3,287.54 +6.0 +0.2

Malaysia 1,839.29 -8.1 -0.4

Indonesia 5,066.83 -4.1 -0.1

Philippines 7,208.81 -13.2 -0.2

Trading Summary Buy Sell Net

Institution 2,594 3,598 -1,004

Proprietary 3,974 3,799 174

Foreign 10,374 7,914 2,460

Individuals 39,773 41,403 -1,631

Total Trading Value 56,714 Btm

Most Active Value Value Close %Chg

AKR 3,110 2.66 +15.7

SCB 2,789 186.00 +1.1

BBL 1,460 199.50 +0.3

GEL 1,346 1.00 +3.1

AEC 1,089 1.87 +6.3

Commodity Futures Close Chg %Chg

US Crude 78.68 +1.5 +1.9

Brent Crude 82.95 +0.1 +0.2

Gold 1,145.70 -22.0 -1.9

FX Rates Close Chg %Chg

USD/THB 32.73 +0.1 +0.2

EUR/USD 1.25 -0.0 -0.5

USD/JPY 114.63 +1.1 +0.9

USD/CNY 6.11 -0.0 -0.0

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06 Nov 2014

Daily Market Outlook

AP expects presales to hit Bt21.0bn this year, with net sales booking as of

Nov 3, 2014 at Bt20.2bn and current backlog standing at Bt25.7bn. AP has

launched pre special campaign of two new projects which are Baan Klang

Muang at Sukumvit 77 and Rhythm ‘The Slow Collection’ and have already

racked up presales worth more than Bt700mn. (Manager)

BRR (Buriram Sugar PCL) will begin its first trade today, with a Bt6.80 IPO

price tag. 83% of its 1H14 revenue came from selling sugar. Others revenue

came from selling fertilizer, electricity, and other services at 9%, 3.6% and

4% of the total revenue, respectively. BRR’s gross margin is at 17.6% and

its net profit margin is at 4.5%. BRR plans to use IPO fund to expand into

renewable energy business. Comment: Thailand is currently ranked

number two at 15% share of total world sugar export, behind only

Brazil, the majority exporter with 46% share. BRR makes up 1.83% of

total sugar production in Thailand.

Global issues

Consolidation has finally given some way to speculation, and mildly

undershooting German and Eurozone data has provided some cause for

optimism for those holding for some firm accommodative action from the

ECB tomorrow. With regards to the US, the electoral victory by the

Republicans during the mid-terms have been well-received by markets.

USA

Wall Street gained on GOP victory. Both the S&P500 and the Dow

advanced to record highs as the Republicans took control of the Senate and

won many key seats in the mid-terms. The decisive results dispelled fears

of drawn-out runoffs and raising hopes of more investors and energy friendly

policies. S&P energy index was up 1.8%, while the Dow rose 0.58% to

17,484.53 while the S&P 500 gained 0.57% to 2,023.57. NASDAQ fell

0.06%, weighted down by a 14.1% drop of TripAdvisor. Comment:

Research from US fund showed 88% of time stocks rose in the 4Q right

after mid-term elections regardless of outcome.

Europe

Strong private sector results help equities. Strong 3Q14 performances

by several of the largest European firms helped push European equities up

on Wednesday. Marks & Spencer shares shot up 9.7% following an upwards

revision of its 2014-15 projection of gross non-food revenue and the

announcement that 1H14 Basic EPS increased for the first time in four years.

There were similar stories across Europe, with German re-insurer Hanover

Re reporting higher than expected net profit and its shares increasing 2.2%.

The FTSEurofirst 300 – composite of European blue chips, increased

1.69%. For the day the DAX increased 1.63%, while the CAC increased

1.89%, FTSE 1.32% and Milan 2.60%. (Bloomberg, Reuters)

Weak data fuels speculation. German October Markit Services PMI came

in at 54.4 versus 54.8 expected, while Eurozone’s respective figures were

52.3 versus 52.4. The slightly weaker than data likely helped to shore up

investor confidence that while a full-blown QE is still unlikely, Draghi’s press

3

06 Nov 2014

Daily Market Outlook

conference following tomorrow’s ECB meeting would likely offer some

unambiguously dovish sentiments. (Bloomberg, Reuters)

Commodities

News of disruption to Saudi supply – that an oil pipeline in Saudi Arabia

caught fire – allowed oil prices to move up. NYMEX increased US$1.49 to

close at US$78.68/barrel while Brent increased 13 cents to US$82.95/barrel,

where the low point of Wednesday, US$81.63, was the lowest since 2010.

Gold spot fell 2.29% to US$1,141.10 after touching the lowest point since

2010 at US$1,137.40. This reflect both the continual strengthening of the

dollar as the emergence of equity returns. (Bloomberg)

4

06 Nov 2014

Daily Market Outlook

Date Regions

3-Nov-14 US

4-Nov-14 US

5-Nov-14 US

6-Nov-14 EU

EU

7-Nov-14 US

US

Mon Tue Wed Thu Fri

3 4 5 6 7

New listed share - BA

XD

DTAC : 1.57 Bt

XD

ERWPF : 0.0852 Bt

PPF : 0.1997 Bt

SIRIP : 0.1997 Bt

TGROWTH : 0.2357 Bt

TRUEIF : 0.2357 Bt

XD

CPNCG : 0.196 Bt

CPNRF : 0.323 Bt

QHPF : 0.182 Bt

10 11 12 13 14

XD

CRYSTAL : 0.1928 Bt

OHTL : 4.0 Bt

XD

DCC : 0.67 Bt

17 18 19 20 21

24 25 26 27 28

XD

TNH : 0.60 Bt

Unemployment Rate

November 2014

Economic Indicators

ISM Manufacturing PMI

Trade Balance

ISM Non-Manufacturing PMI

ECB Interest Rate Decision

ECB Monetary Policy Statement

Non-farm Payrolls

5

06 Nov 2014

Daily Market Outlook

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 Excellent

80 - 89 Very Good

70 - 79 Good

60 - 69 Satisfactory

50 - 59 Pass

Below 50 No logo given N/A

รายงานการประเมนิการก ากบัดแูลกจิการ (CGR) โดยสมาคมสง่เสรมิสถาบนักรรมการบรษิทัไทย 2556 Corporate Governance Report of Thai Listed Companies (CGR). CG Rating by the Thai Institute of Directors Association (IOD)

in 2013.

6

06 Nov 2014

Daily Market Outlook

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