SET bucks downbeat regional trend

RECAP: Most Asian stock markets fell yesterday following declines on Wall Street as investors contended with disappointing results from US tech giants and Hong Kong-listed tech stocks.

Analysts say the Thai equity market should continue to benefit from fund flows, reflecting foreign investor optimism, in line with the improving economic outlook. As well, the consumption and tourism sectors are entering their high season. Although third-quarter earnings have been mostly in line with expectations, profit growth should accelerate in the fourth quarter and next year. Domestic and reopening plays should outperform the market.

The SET Index moved in a range of 1,592.49 and 1,607.75 points this week before closing yesterday at 1,606.07, up 0.9% from the previous week, with average daily turnover of 59.19 billion baht.

Institutions were net sellers of 4.56 billion baht, followed by retail investors at 1.81 billion. Foreigners were net buyers of 5.58 billion baht and brokers bought 786.6 million baht worth of shares.

NEWSMAKERS: The cabinet has approved a proposal to allow foreigners to own up to one rai of land if they invest at least 40 million baht in Thai properties, securities or funds over three years. The real estate and tourism industries like the idea but some others fear large tracts being snapped up, especially by Chinese investors.

• The Finance Ministry plans to inject 10 billion baht into Thai Airways International to recapitalise the carrier and keep its shareholding from dipping below 40%. THAI also announced plans to lease two Airbus A350-900 aircraft for use beginning from January.
• The US economy grew in the third quarter for the first time this year as consumers proved resilient in the face of inflation. GDP rose at a 2.6% annualised rate after falling for the first two quarters.
• Goldman Sachs now expects the US Federal Reserve's benchmark interest rate to end the year in the range of 4.5% to 4.75%. The Fed on Wednesday will announce its latest policy decision, expected to involve another 75-basis-point hike.
• The European Central Bank announced another 75bps rate hike on Thursday and said further increases would follow to combat soaring inflation now at 9.9%. President Christine Lagarde warned a euro zone recession was looming.
• The Bank of Japan on Thursday voted to maintain its ultra-easy monetary policy, even as other central banks continue to raise rates to curb inflation. The decision was largely expected and the yen held steady at around 146.2 to the dollar.
• Japan on Friday unveiled a fresh economic package that includes 29.1 trillion yen ($200 billion) in government spending to alleviate the pain of accelerating inflation and lift the economy out of the doldrums.
• Foreigners turned net sellers of Asian bonds (excluding China) to the tune of $2.9 billion in September as concerns mounted over the region's weaker growth outlook, market data showed.
• Chinese stocks traded in Hong Kong posted their worst showing ever in a period following a Communist Party Congress after this year's gathering dashed hopes for more market-friendly policies. The Hang Seng China Enterprises Index lost 9%, the most for any five-day period following a party meeting since the gauge's inception in 1994.
• The IMF has trimmed its forecast for Asian economic growth to 4.0% this year from 4.9% earlier, and to 4.3% next year, from 5.1%.
• Southeast Asia's internet economy is expected to be worth $330 billion by 2025, a downgrade from $363 billion forecast last year, due to economic uncertainty and pressure on tech companies to make a profit, according to the annual e-Conomy SEA report by Google, Temasek Holdings and Bain & Co.
• Indonesia, the world's biggest palm oil producer, is testing to see whether vehicles can run effectively on diesel blended with 40% cooking oil.
• Billionaire Elon Musk has completed his US$44-billion acquisition of Twitter after months of legal melodrama. He celebrated by firing its four top executives.
• Google parent Alphabet Inc said profit fell 27% year-on-year in the third quarter, even as revenue climbed 6% to $69.1 billion.
• Amazon.com returned to profitability in the third quarter after two quarters of losses, reporting earnings of $2.9 billion while revenue rose 15%. But it warned sales could be weak in the key fourth-quarter holiday period as consumers tighten their belts.
• Thai tourism should benefit from the Laos-China high-speed railway, with at least 3 million Chinese arriving overland by rail once Beijing permits outbound travel to resume, says the Association of Thai Travel Agents.
• Shares of JKN Global Group Plc jumped 25% on Thursday, a day after the company announced it had acquired the firm that runs the Miss Universe pageant. The local media and marketing firm expects earnings from the Miss Universe brand could cover the $20-million acquisition cost within 2-3 years.
• SCG, the country's largest industrial conglomerate, is bracing for an economic slowdown by focusing on three key businesses -- logistics, renewable energy and smart living -- for more sustainable growth.
• The government says 25,000 electric vehicles have been approved for subsidies with a total of 10 EV manufacturers signing up for the 2.9-billion-baht scheme intended to encourage purchases of greener vehicles. The latest is the motorcycle manufacturer Thai Honda.
• The cabinet has approved a five-year state enterprise development plan (2023-27), involving 184 projects worth more than 2.9 trillion baht.
• The cabinet has approved a plan to borrow up to 150 billion baht to replenish the Oil Fuel Fund, which has run up 127 billion baht in debts from subsidising fuel prices this year.
• The Ministry of Finance is expected to decide by Nov 29 whether to offer a sixth edition of the popular Khon La Khrueng co-payment scheme to stimulate consumption and spur the economic recovery.
• AirAsia Super App has signed deals with 50 hotel groups from Thailand and three countries in Southeast Asia in an attempt to become the number one travel platform in the region, driven by its 51-million-user database and 100 million plane passengers.

COMING UP: The Bank of Thailand will report monthly economic data on Monday and set the schedule for the next round of Monetary Policy Committee (MPC) meetings. Also due on Monday are October manufacturing PMI and consumer confidence in China, and euro zone third-quarter GDP and October inflation.

• The Reserve Bank of Australia will hold a policy meeting on Thursday and the US will release October manufacturing PMI. On Wednesday (early Thursday morning Thailand time), the US Federal Reserve will announce the results of its rate meeting.

STOCKS TO WATCH: Asia Plus Securities believes the consumption sector will be a standout as the government readies new stimulus packages. Shares of retail, food, hotel, real estate and finance firms are expected to outperform. The broker's top picks are HMPRO, CPN, CRC and CBG.

• Capital Nomura Securities says that attractive stocks in the near term will be domestic plays, backed by flood recovery, economic stimulus and the tourism recovery. It recommends CRC, CPALL, MAKRO, BJC, ERW, CENTEL, AOT, ADVANC, TRUE, INTUCH, ICHI, SNNP, BBL, SCB, TLI, AMATA, EKH and SISB. High-growth picks are BE8, BBIK, IIG, SINGER and JMT. For long-term investment, it suggests selective buys of anti-commodity stocks like SCGP, GPSC, TOA, EPG, GULF and SAPPE.

TECHNICAL VIEW: Capital Nomura Securities sees support at 1,585 points and resistance at 1,609. Thanachart Securities sees support at 1,593 and resistance at 1,620.