1

22 OCT 2014

Daily Market Outlook

Relief rallies abound

The SET looks likely to trade up today, offsetting yesterday’s dip, as a wave

of global relief look to offset somewhat lackluster local news. Locally a

clarification by the Finance Ministry looks to lead to some upwards

adjustment, and there are some positives development regarding private

investment. Globally, the prospects of fresh easing by the ECB, strong US

earnings across sectors, less worrisome economic data from Chinese and

good Japanese data have created a wave of optimism likely to carry on

into regional and local markets today.

Factors to watch

Local issues:

Stagnation not stagflation, BOT reassures. Following Monday’s comment by Finance Minister Sommai Phasee that there was danger of stagflation – high inflation and unemployment with low growth – the Minister clarified that he meant stagnation – low economic growth. BOT said that with households having accumulated substantial debt these past two years private consumption in the face of shaky economic growth is heavily affected. The central bank thinks public spending and clearly direction of such spending would be main drivers of growth this year and next. (Bangkok Post)

Tourism Council foresees another tough year. The Tourism Council of Thailand (TCT) warns that unless martial law is lifted, and other measures are also taken, the tourism and travel sector may perform even more poorly in the coming 12 months. The number of international arrivals at Suvarnabhumi from January to September dropped by 19% YoY, clocking in at 9.1mn versus 11.3mn prior. The TCT said that despite the political stability many countries have maintained their travel warnings and overseas operators have shifted to selling alternative destinations such as Vietnam, Bali and even Myanmar. (The Nation) Comment: Tourism was expected to recover as political stability resumed, but economic slowdown and bad publicity may well result in sector underperforming already weak expectations.

Foreign businesses returning. The Commerce Ministry’s Business

Development Department has approved 354 foreign firms to set up

operations in Thailand under the Foreign Business Act (FBA) during the first

10 months of the year, with total investments approved worth Bt60.14bn.

Number of approvals is 7% higher YoY while value of initial capital

investments increased by Bt44.54bn, or 74.06%. (The Nation)

Takashimaya investing in Thailand. Japan’s ultra-high-end department

store Takashimaya yesterday signed a 51:49 JV agreement with Iconsiam

Co, itself a JV between Magnolia Quality Development Corp and Charoen

Pokphand Group. Siam Takashimaya will invest about Bt3bn to develop the

store, with Bt1.8bn on construction and Bt1.2bn for operations and fitting of

store. Opening is slated for 2017. (The Nation)

L&E removed its stock from the MAI to trade on the SET yesterday to draw

more institutional and retail investors. The company is aiming for 15-20%

growth in sales revenue in the coming years, seeing strong demand in local

and overseas markets and after the formation of the AEC at the end of next

year. Meanwhile, market expansion for 2015 is likely to be in the Philippines

and Indonesia because of the large size of those markets. (Bangkok Post/

The Nation)

Source: Bisnews, Bloomberg

Thailand Research Department:

Mr. Warut Siwasariyanon (No.017923) 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 1,526.14 -0.5 -0.0

SET50 1,014.79 +0.3 +0.0

SET P/E (x) 17.8

SET P/BV (x) 2.2

SET Div. Yield (%) 2.9

Dow Jones 16,614.81 +215.1 +1.3

S&P 500 1,941.28 +37.3 +2.0

NASDAQ 4,419.48 +103.4 +2.4

UK 6,372.33 +105.3 +1.7

Germany 8,886.96 +169.2 +1.9

France 4,081.24 +90.0 +2.3

Japan 14,804.28 -307.0 -2.0

South Korea 1,915.28 -14.8 -0.8

Hong Kong 23,088.58 +18.3 +0.1

China 2,339.66 -17.1 -0.7

Taiwan 8,654.64 -8.5 -0.1

Singapore 3,202.74 +21.7 +0.7

Malaysia 1,796.22 -6.9 -0.4

Indonesia 5,029.34 -11.2 -0.2

Philippines 7,068.03 +10.5 +0.1

Trading Summary Buy Sell Net

Institution 2,361 2,648 -287

Proprietary 4,212 4,479 -267

Foreign 7,472 8,339 -867

Individuals 22,233 20,812 1,421

Total Trading Value 36,278 Btm

Most Active Value Value Close %Chg

TPIPL 2,472 1.80 -10.5

KBANK 1,622 232.00 +0.4

TRUE 1,521 10.80 +0.9

PTT 1,231 353.00 +0.6

ADVANC 1,216 223.00 -1.3

Commodity Futures Close Chg %Chg

US Crude 82.49 +0.1 +0.1

Brent Crude 86.22 +0.8 +1.0

Gold 1,251.70 +7.0 +0.6

FX Rates Close Chg %Chg

USD/THB 32.25 -0.0 -0.1

EUR/USD 1.27 -0.0 -0.7

USD/JPY 106.97 +0.0 +0.0

USD/CNY 6.12 -0.0 -0.0

2

22 OCT 2014

Daily Market Outlook

DTAC is partnering with Facebook to bring affordable mobile internet to the

country, particularly rural areas. Every new prepaid customer can access

Facebook for free for 3 months and another 3 months for users who top up

60 baht or add on the package. The move is part of its global plan to lure 4

billion unconnected people to connect via Facebook. The company also

seeks to double its mobile data users within two years. (Bangkok Post)

ANAN (Ananda Development PCL) achieved sales of almost 2,100 units worth more than Bt13bn at successful launch of four new projects in event IDEO Urban Pulse. 85% overall take up rate with two projects completely sold out at launch. (Manager)

Global issues

The ECB is considering buying corporate bonds on the secondary

market and may make a final decision as soon as December with a view to

begin buying the bonds early next year. The move, if realized, would expand

the private-sector asset-buying program the ECB began on Monday, which

is aimed at fostering lending to businesses in hopes of spurring growth. The

ECB has already cut interest rates to record lows, offered banks cheap loans

and begun buying covered bonds, which are backed by high-quality assets.

It earlier planned to start buying asset-backed securities, or bundled loans,

later this year. (Reuters)

The euro fell sharply against the dollar on Tuesday following a Reuters

report that the ECB is considering buying corporate bonds. The euro traded

at US$1.2710, near its lowest level since Thursday last week after having

fallen 0.7% on Tuesday. The dollar traded at 107.03 yen, having recovered

from Tuesday's low of 106.25 yen. The dollar index stood at 85.401,

extending its rebound from a three-week low of 84.472 hit a week ago.

(Reuters)

USA

Strong earnings results provide relief rally. Both Apple Inc. and Texas

Instruments Inc., two technology bellwethers showed upbeat better-than-

expected results, lifting the NASDAQ Composite index more than 2%, but

also offsetting concerns of slowing global economy through their strong

global sales figures. Earnings surprise was to be found across various

sectors, with Goldman Sachs profits leaping 50% due to increased bond

market activity. NASDAQ went up 2.40%, while the Dow and S&P500

increased 1.31% and 1.96%, respectively. (BBC, CNBC, Reuters).

Comment: Apple shares affected markets not just because of its direct

price movements but because sales of its consumer products is seen

often viewed as a bellwether of general global consumption. Apple

posted US$8.37bn in earnings, a 13% YoY increase, helped by strong

iPhone 6 sales where analysts expected sales to be around 37.41mn

but actual sales came in at 39.3mn.

Yields ease, greenback rise. Upbeat mood in equities drew investors out

of Treasuries’ and pushed yields up, with 10-year Treasury yield increasing

2.3 basis points to close at 2.208%. The dollar index, bolstered by both

strong earnings and stronger yield, rose to 85.381. (Reuters)

3

22 OCT 2014

Daily Market Outlook

Europe

ECB measures coming soon. European equities posted gains on a report

that ECB was preparing a plan to buy corporate bonds, in a bid to free up

more of banks’ balance sheet. DAX went up 1.94% and CAC went up 2.25%,

while FTSE went up 1.68% while Milan increased 2.79%. (Reuters)

Asia

Lukewarm shower from China, some comfort from Japan. Data

released yesterday showed China’s 3Q14 GDP growth was 7.3%, beating

expectations of 7.2% while Japan trade data released early Wednesday

showed Japan’s exports rose 6.9%, above expectations of 6.8%. The news

have so far increased the momentum started in Wall Street yesterday and

allowed Asia markets to all open higher, except for China’s. (Reuters)

Comment: While the Chinese data was reasonable, it was far from great

as the growth rate is still China’s slowest since the 2009 global

recession, and well below its targeted 7.5% annual growth.

Nonetheless Japan’s figure was considered a strong outperformer.

Commodities

Stronger expectations of global and specifically Chinese demand helped oil

to trade up, with NYMEX increasing 10 cents or 0.1% to US$82.81/barrel,

while Brent increased 82 cents to US$86.22/barrel. Gold increased to the

highest level in six weeks to US$1,251.70/ounce due to solid Chinese data

and possibly also expectations of Diwali Thursday. (Reuters)

Date Regions Economic Indicators

21-Oct-14

CNY GDP (Q3)

Industrial Production Retail Sales

JPY Balance Trade

Export/Import

22-Oct-14 US CPI

JPY PMI

23-Oct-14

CNY PMI

EU PMI

Consumer confidence

US Jobless Claims

PMI

Date XD

20-Oct-14

AP 0.02 Baht Cash

AP 10:1 Baht Cash

MBK 0.30 Baht Cash

MNIT2 0.18 Baht Cash

MNRF 0.185 Baht Cash

M-PAT 0.222 Baht Cash

M-STOR 0.17 Baht Cash

21-Oct-14 HMPRO 0.013889 Baht Cash

HMPRO 8:1 Stock

24-Oct-14 VIH 0.00740741 Baht Cash

VIH 15:1 Stock

4

22 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

22 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