1

31 OCT 2014

Daily Market Outlook

SET to continue to strengthen

Expect the SET to maintain its recent positive momentum today, with

significant positive news on the local front working with a backdrop of

accommodating global sentiments. Locally, key positive developments

regarding various components of growth, from FDI to Exports to Tourism,

will all help sentiment. Globally, investors continue to show a resilience to

shaky economic results, focusing on the positive data. US GDP surprise

will help to shore up confidence in regional markets today.

Factors to watch

Local issues:

MR Pridiyathorn woos foreign firms. At a forum in Singapore yesterday MR Pridiyathorn spoke to 300 top regional business leaders saying that within a month the government will announce tax incentives for companies looking to set up regional headquarters here. The region’s business elite were also told the government was racing against time to reform the country within its promised time frame. Deputy PM MR Pridiyathorn said his top priorities were boosting Thailand’s international competitiveness and helping Thai firms invest abroad. (Bangkok Post) Comment: Expect boost to FDI next year following tax incentives and a boost to confidence and SET once measures announced in November.

PM secures Cambodia tourism MOU. Yesterday Thailand and Cambodia

pledged cooperation on tourism in a memorandum of understanding (MOU)

signed in Phnom Penh by the two countries. More details will be released

but Cambodian Foreign Ministry has already rejected PM Prayut’s

suggestion prior to the signing to get Cambodian agreement to open the

entrance to Preah Vihear from Thai border. A MOU for the development of

a rail link was also signed, and the State Raiway of Thailand will improve a

deserted 6km track between Aranyaprathet and Poipet. (Bangkok Post)

Commerce Ministry with strategies to boost exports. Commerce

Minister Chatchai Sarikuya yesterday highlighted four key strategies to drive

country’s growth: encouraging Thais to consume more local products,

emphasizing R&D for export products, promoting cross-border trade, and

driving export growth through closer cooperation with target markets.

Ministry is working with Thai companies to come up with target market-

specific strategies to develop and promote products. E.g. ‘green’ products

or those catering to older generations for Japan or promoting Thai products

with Thai soap actors for Cambodia and other neighbors. (The Nation)

FPO cuts GDP forecasts. The Fiscal Policy Office (FPO) has lowered

projections for Thai GDP growth in 2014 from 2% to 1.4%, the lowest since

2011 flooding. FPO cited poor performance of exports which it has revised

downwards to grow only 0.1% this year. For next year the Office believes

global recovery and increased government spending will allow for 4.1%

growth. Comment: FPO figure for growth this year and next are both

lower than BOT’s numbers.

TICON sold its 30% stake in Ticon Management Co (TMAN) to Mitsui & Co,

which will be booked as an extraordinary gain of about Bt70mn in 4Q14.

Mitsui is a leader in real estate investment trust (REIT) management

business and is expected to help TMAN develop TREIT, which should be

approved by the SEC this November with a value of Bt4bn-5bn. (The Nation)

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 1,563.78 +1.1 +0.1

SET50 1,036.76 +1.5 +0.1

SET P/E (x) 18.3

SET P/BV (x) 2.3

SET Div. Yield (%) 2.9

Dow Jones 17,195.42 +221.1 +1.3

S&P 500 1,994.65 +12.4 +0.6

NASDAQ 4,566.14 +16.9 +0.4

UK 6,463.55 +9.7 +0.1

Germany 9,114.84 +32.0 +0.4

France 4,141.24 +30.6 +0.7

Japan 15,658.20 +104.3 +0.7

South Korea 1,958.93 -2.2 -0.1

Hong Kong 23,702.04 -117.8 -0.5

China 2,391.08 +18.0 +0.8

Taiwan 8,888.07 -15.6 -0.2

Singapore 3,234.31 +10.3 +0.3

Malaysia 1,842.78 +3.2 +0.2

Indonesia 5,058.85 -15.2 -0.3

Philippines 7,170.99 +77.7 +1.1

Trading Summary Buy Sell Net

Institution 2,927 2,353 575

Proprietary 3,557 3,299 258

Foreign 7,587 7,455 132

Individuals 27,108 28,073 -965

Total Trading Value 41,179 Btm

Most Active Value Value Close %Chg

EVER 1,313 4.32 -2.7

PTTEP 1,298 146.50 +2.1

JAS 1,238 7.40 +2.8

SCB 1,043 176.00 -0.3

ADVANC 1,026 235.00 +0.9

Commodity Futures Close Chg %Chg

US Crude 81.12 -1.1 -1.3

Brent Crude 86.24 -0.9 -1.0

Gold 1,198.60 -26.3 -2.1

FX Rates Close Chg %Chg

USD/THB 32.55 +0.1 +0.3

EUR/USD 1.26 -0.0 -0.2

USD/JPY 109.20 +0.3 +0.3

USD/CNY 6.11 +0.0 +0.1

2

31 OCT 2014

Daily Market Outlook

IMPACT is confident of generating Bt525mn in revenue during the October-

December period, its third quarter in its fiscal 2014 started April. (Bangkok

Post)

LOXLEY expects its revenue in 2015 to surge by 10%, boosted largely by

the government's infrastructure investments, which cover not only rail

transport but also the mass transit system and digital television. LOXLEY is

preparing to join bids to develop the signaling systems of dual-track railway

projects. The company expect to earn Bt17bn in revenue this year. (Bangkok

Post)

Global issues

Yesterday saw a continued strengthening in investor sentiment, with positive

data from the US shoring up confidence in its economy. In Europe there was

mixed data, but equities nonetheless traded up, underlining investor risk-

resilience. The EU-brokered Russian Ukraine gas deal will also help ease

European growth and global stability concerns.

The VIX index moved down 4.2% to close at 14.52, from Wednesday’s

15.15, underscoring the continued calmness on Wall Street. (Reuters)

USA

‘Goldilocks US data’. US GDP Advance numbers for Q314 showed 3.5%

expansion versus expected 3.0% while US Initial Jobless Claim was 287k

versus the 283k expected. Analysts interpreted the data as being ‘just right’

– strong enough to signal strength in the economy, but with enough labor

market weakness to curtail any Fed intention of early tightening. The Dow

closed up 221 points or 1.30%, while the S&P was up 0.6%. Comment: The

Dow’s rise was largely due to a huge 10% rise in Visa shares following

strong earnings report.

Europe

German weakness persists, equities up nonetheless. There was better

than expected Eurozone sentiment data as German inflation figure came in

weaker than expected. Eurozone Economic Sentiment index for October

was 100.7 versus the 99.9 expected. However the German economy still

showed sign of resilience, with the unemployment figure that was expected

to rise falling by 22k to 2.89mn in October while the country’s Jobless rate

was 6.7%, matching expectations. Investors chose to focus on the positives

and the broad European equities market traded up. The FTSE closed up

0.15%, DAX 0.3%%, CAC up 0.74%. Similarly, Milan rose 0.2% and IBEX

closed up 0.16%. (Bloomberg, Reuters)

Russia-Ukraine gas deal. Russia has agreed to resume gas supplies to

Ukraine over the winter in a deal brokered by the European Union. The deal

will also ensure gas supplies to EU countries via Ukraine are secured. EU

energy chief said this may be the “first glimmer” of hope in easing tensions.

(BBC)

3

31 OCT 2014

Daily Market Outlook

Asia

BOJ meets today. Twenty-nine of the 32 economists surveyed by

Bloomberg News forecast BOJ will hold its rate and maintain policy at its

meeting today (Bloomberg).

Commodities

Key commodities moved lower on Thursday, with gold falling below

US$1,200 to US$1,195 at one point, and closing at US$1,200/ounce, down

1.0% from Wednesday’s close at US$1,211.50/ounce. This was in line with

the increased risk appetite and strengthening US$ expectations. (Reuters)

NYMEX closed around 1% lower Thursday, after two days of closing up, with

NYMEX falling US$1.08 to close at US$81.12/barrel. Brent closed 88 cents

to US$86.24/barrel. (Reuters)

Date Regions Economic Indicators

28-Oct-14 US Consumer Confidence

JPY Industrial Production

29-Oct-14 US Fed Interest Decision

30-Oct-14

EU Consumer Confidence

US Jobless Claims

JPY CPI

Household spending Unemployment rate

Date XD

30-Oct-14 LANNA 0.35 Baht Cash

3-Nov-14 DTAC 1.57 Baht Cash

4

31 OCT 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.

5

31 OCT 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