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Warren Buffett’s top three investment tips

26/09/2020

Warren Buffett is widely considered as one of the greatest investors ever. He is renowned for being humble about his skills and regularly offers advice that investors can follow to achieve success. Here is our list of his top three investment tips.

ONE: Never invest in a business that you cannot understand.

Invest in what you know. If you can’t understand it then you probably shouldn’t be buying it. Focus on buying investments that you understand. There are tens of thousands of publicly traded companies, investment funds and ETFs (exchange traded funds) to choose from, do your research and pick the ones that make sense to you.

TWO: Some investors believe it is important to listen to pundits – and, worse yet, important to consider acting upon their comments.

Most news is noise. Media companies sell newspapers by creating fear and sensationalising stories. If it bleeds, it leads. Don’t let them suck you in and alter your investment choices. If you were to take the advice of news pundits every day you would be forever buying and selling investments. Have faith in your decisions. You also need to question whether the talking heads actually know what they are talking about; everyone remembers Jim Cramer declaring Bear Stearns a safe investment moments before it went bankrupt.

THREE: Price is what you pay. Value is what you get.

Price and value are not the same. Whether you buy direct stocks, or you invest in a mutual fund or ETF, you are usually buying a share of a revenue-generating business. The price of a stock is much more volatile than the fundamentals of that business. This provides opportunity and risk for investors. During crashes, stock prices will often fall further than current and future earnings, which creates value and a buying opportunity. Conversely, an increase in stock price doesn’t always mean its revenue is going to grow at the same rate, which can lead to stocks being overvalued. As an investor you need to learn the difference between price and value.

There are many investment models that you can follow. Find one that makes sense to you and have the discipline to follow it. If you are unsure about investing on your own then you should consider using a professional financial advisor.

Courtesy: Published at The Phuket News on September 26, 2020 by Wiliam Frisby 

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Top 10 mistakes expats make with their money

12/09/2020

William Frisby at Hampton Bridge investment consultants has spent 15 years advising expats in Asia on how to save and invest their money. Here is a list of the top 10 mistakes that I regularly see when I sit in front of new clients who need help. If you have experienced any of these then contact me today.

ONE – 25-year savings plans

The cardinal sin that most expats make is investing in long-term savings plans that have restrictive 18-24 month commitment periods. These investment accounts are layered with hefty charges and it’s extremely difficult to make a return on your investment.

Advice: Close your account, take the hit and move your money to something that grows.

TWO – Exotic investments

Life settlements, litigation financing, plantations, storage units, waste disposal, student property, antiques and wine is a short but not exhaustive list of examples. All of these funds look like they have a sound, ethical, successful business model beneath them, which some of them do. But when they are structured into an investment fund, it all goes wrong when investors need liquidity.

Advice: Stay well away and look to diversify if you already hold these assets.

THREE – Underperforming mutual funds

Mutual funds are where you want to be; good managers beat the market and there will never be a day your money disappears. The problem is most mutual funds do not perform very well. Heavy charges or poor management often lead to below-average returns.

Advice: Focus on buying quality managers with proven long-term track records. Heavy charges or poor management often lead to below-average returns.

FOUR – Big bad banks

Often people feel and see safety in the big banks of the world and there is truth to that, but safety is all you get. Big banks fill their client’s investment accounts full of their mutual funds. No bank has the best-in-class fund in every asset, so you are often left with underperforming funds and over-exposed to one fund family.

Advice: Being unbiased is key; work with someone who is independent and has no vested interest in choosing certain funds when they build a portfolio.

FIVE – Cheap is best, or is it?

A lot of people invest in Exchange Traded Funds because they carry such low charges and many ETFs are excellent. But remember, an ETF only tracks the market, they don’t try and beat it. So you may only pay 0.5% in charges, where a mutual fund might charge you 1.5%. But if the mutual fund beats the market by 5% and the ETF only tracks it, where would you prefer your money to be?

Advice: Diversification is a key component of any investment strategy. ETFs have an important place in a portfolio, but they shouldn’t be seen as the only solution. How do you know what will happen to the company you’re investing in?

SIX – Stock trading

Which stock to invest in and why? That is the question and one that I can’t answer. Investing in individual stocks is about as risky as going to the casino. How do you know what will happen to the company you’re investing in? How much research have you done into the company’s management, it’s industry, financial statements and business forecasts?

Advice: Leave this to the professionals and let them select the right stocks as part of a well managed fund.

SEVEN – The streets are paved with gold

Gold is like cash; it is a means of exchange and store of value. It doesn’t bear interest and has no business underneath that creates profit. Investors move to gold in times of uncertainty and this causes jumps in value. But it is very risky and over the long-term struggles to beat inflation.

Advice: Invest in a great business not a lump of metal.

EIGHT – QROPS

This is a pension arrangement for British expats, which is an excellent way to take your pension overseas and benefit from tax relief, wider investment choice and control. The problem is that many offshore advisors invest in the type of funds that I’ve talked about above and lifelong pensions often disappear.

Advice: Again independence is key. Make sure your advisor is giving you advice based on the benefits to you, not them. 

NINE – US taxpayers using offshore accounts

There is no offshore investment plan that is good for an American taxpayer. Period. Americans should always keep their money in the US and use a regulated US-qualified advisor. Every American knows this and every advisor knows this, but far too often we see the rules not being followed.

Advice: Find yourself a US-regulated advisor with cross-border financial planning experience.

TEN – Off-plan real estate

Real estate can be an excellent investment, it can also be a terrible one. Off-plan properties are often the most popular for expatriate investors, but they also come with a lot of risks. Delays in construction, overpricing, rental guarantees that don’t work out are just a few of the common problems I see.

Advice: The safety of property is its tangibility, focus on things that are already built. Or, find developers with long successful track records.

Courtesy: Published at The Phuket News on September 12, 2020 by Wiliam Frisby

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Financial Thaimes: Watching the COVID high

29/08/2020

Believe it or not, investment markets are at an all-time high. Sounds hard to believe doesn’t it, considering that the world is in the middle of a pandemic where we are seeing endless amounts of people dying, losing their jobs, salaries being halved or lost and businesses going bankrupt by the day. Yet, the S&P 500, an index of the 500 largest companies in America, is sitting at 3,484 (28/8/2020), higher than its all-time high of 3,394 from February this year.

As America is the world’s biggest economy, the S&P 500 is an important measure of how well the global economy is performing. So, if you were to land on earth from a different planet, you would be well within your rights to believe that the world’s economy is in a really good position.

How is this possible? Good question… 

Tech and healthcare companies make up a large part of the S&P 500 and COVID-19 has been very positive for these sectors. eBay and Amazon are making billions out of our locked-down lives. In July, Jeff Bezos added US$10 billion to his net worth in one day. Also, the hardest-hit industries like hotels, restaurants and airlines make up a slim portion of the S&P 500 index, so their misery is having little effect on its performance. But in our opinion, this isn’t the real reason why the S&P 500 is so high.

For years we have seen the markets not truly reflect the state of the world economy and what we are seeing here is no different. Financial markets work on confidence and the influx of investors money. When they crash, like they did earlier this year, it creates an opportunity for investors to buy stocks at enormous discounts. Imagine walking past your favourite shop and there is a 50% sale on, you’d run in and buy as much as you could afford right? This is precisely what happened to markets this year and we are still riding this wave of confidence. But, as we reach all-time highs again is this where we might see another watershed moment?

Why don’t we just invest in tech and healthcare companies then?

The simple rule of investing is: buy low, sell high. At present, a lot of these companies are at a high. Amazon has seen incredible success this year, which couldn’t have been predicted to this extent. But tech companies are fragile as it is one of the fastest moving spaces in the world. Look back at the 1980s when Sony and Japanese technology ruled the world. Today, Sony and the Japanese economy are now a mere shadow of their former selves. What happens if Jeff Bezos or Elon Musk are struck by lightning tomorrow? We have seen how the loss of an inspirational leader can result in years of failure with companies like Manchester United following the retirement of Sir Alex Ferguson. Picking individual stocks is so difficult and too risky for normal mums and dads.

The health sector again is also at a very fragile stage. Currently, hospitals are full, drugs are being sold by the shipload and everyone is trying to create a vaccine. If one company develops the vaccine tomorrow then that company will make billions overnight. But the pharmaceutical companies that did not create the vaccine will have massively over-invested into a failed endeavour. Do you know which company has the magic formula for the vaccine?

Is there a crash around the corner?

If we go back to the S&P 500, then we believe that there is potentially a very big crash around the corner. At some point, the markets have to realise what condition the world economy is in and a correction will happen. It is the job of big banks, investment houses and pension providers to protect their clients and shareholders money and this could result in a massive sell-off, resulting in share prices falling by the second.

What should I do?

Realign your investments. There are investment funds that make money when markets head south and there are also investment managers who are good enough and fast enough to react appropriately to market changes. But, you can only take advantage of their skills if you move your investments before the crash happens.

If you are invested, have a pension or own anything related to the financial markets, you need to speak to a professional today before it’s too late.

Courtesy: Published at The Phuket News on August 29, 2020 by Wiliam Frisby

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Phuket seeks to diversify after Covid-19

28/07/2020

The Covid-19 pandemic continues to cripple Thailand’s vital tourism sector, with provinces that rely the most on tourism revenue, being hit the hardest. Thailand may have managed to contain the Covid-19 virus, but at the expense of its economy going into a free fall with the southern resort province of Phuket exemplifying the downturn.

Phuket businesses, which rely almost exclusively on foreign arrivals for tourism income, cannot estimate when the island’s economic crisis, the worst ever, will be over. Firmly positioned as a world-class destination, Thailand’s largest island has earned vast revenue from foreign tourists, many with deep pockets. So when an unpredictable factor such as the Covid-19 pandemic forcing border closures and halting flights, Phuket’s income has slowed to a trickle, with its local economy at risk of a total meltdown.

The situation couldn’t more stark than in the popular party town of Patong. Usually a thriving and bustling tourist Mecca, full of bars, restaurants, souvenir shops, expensive markets, massage shops and Thais hustling the foreign tourists for tours and ‘deals’. The entire town exists as a seaside city designed to efficiently extract tourist dollars from the pockets of foreign visitors. Now it’s mostly a ghost town, certainly a much humbler and quieter city of closed shops and barren streets. A few hotels re-opened when the lockdown was lifted. Many have shut again since.

Phuket’s tourism sector employed 323,219 people locally before the virus struck in January, generating 245 billion baht in its annual gross provincial product, according to the new provincial governor Narong Woonsew. He says a whopping 80% of the province’s economy relies on tourism. The damage to the province’s tourism sector from impacts of the outbreak is estimated at 160 billion baht so far. Tourists visiting Phuket this year are predicted to shrink to 5 million or probably less, down from last year’s 14.4 million. Of those, 1.5 million will be Thais. Governor Narong says the situation is prompting a rethink of the province’s economic advancement strategy.

“After the government ordered the closure of our skies, Phuket’s tourism revenue was wiped out.”

Even when tourism resumes under the “new normal” practices, there will have to be a paradigm shift in the way the province determines where it will derive its income. According to Narong, the provincial office and tourism companies are looking to diversify and promote a variety of sectors to drive new growth. 6 sectors have been earmarked; marinas, education, health and wellness, seafood exports, gastronomy as well as sports and events businesses.

(The island’s marinas mostly serve as expensive parking garages for infrequent visits of the boat owners, or as a jump-off point for some of the more exclusive island tours. The booming international school scene was merely a response to the large foreign employee contingent who wanted a quality education for their children. The ‘wellness’ scene has suffered over the past 3 years with a strong Thai baht and expensive private hospitals pricing themselves out of a competitive regional market.)

“These will be our new economic engines which will function alongside the conventional tourism businesses,” the governor said.

Phuket is home to 5 marinas, 38 seaports and a deep-sea port. About 1,500 yachts and cruise ships visit the province each year on average.

As for education, the province is looking to create internationally accredited study programs to increase enrollments of foreign students. Already the location of 12 international schools, Phuket has set a yearly revenue target of 2.1 billion baht from 3,600 students.

For tuna exports, the future looks bright. Phuket has both state-run and privately-owned wharves where more than hundreds of boats from Japan, Taiwan and the US arrive to buy top-grade tuna at high prices. The exports are worth 1.3 billion baht a year.

The gastronomy industry is a lucrative revenue stream which capitalises on the island’s unique food culture at its nearly 2,000 restaurants. Annual turnover of the sector is estimated at 91 billion baht with more room to grow in the future.

Phuket is currently preparing 3 major events to promote tourism, with the minister of commerce overseeing the campaign. The events will start with the 5-week Phuket Seafood & Gastronomy Festival in August and September, followed by a surf competition in September, and concluding with the traditional Vegetarian Festival in October.

For now, it remains unlikely that many foreign tourists will be able to visit the island end enjoy any of them.

Courtesy: Published at The Thaiger on July 28, 2020 by Bangkok Post

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Phuket to get 3 billion baht medical tourism hub

23/07/2020

Plans are underway for a 3 billion baht medical hub on the island of Phuket, set over 140 rai near Mai Khao beach, just north of the airport. A report in Nation Thailand says the plan has been confirmed by the Director of Vachira Hospital, Dr. Chalermpong Sukontapol. He says that as a result of the downturn in tourism due to the Covid-19 pandemic, the island now needs to combine its strengths in both the tourism and medical sectors. He points out that the idea is not new, having been first mooted in 2017, by then governor, Noraphat Plodthong.

It’s understood the Public Health Ministry and the Tourism and Sports Ministry have joined forces to discuss the proposal before submitting it to Cabinet. It is expected to be funded by Finance Ministry loans aimed at helping the economy, and society as a whole, to recover from the devastation of the Covid pandemic.

The first phase of the project is expected to cost around 1.29 billion baht and will involve the construction of an international health plaza, a hospice for the terminally ill, a care home for the elderly, and a rehabilitation centre. Additional services, such as accommodation and tour services, as well as consular assistance, will also be made available.

Phase 2 is expected to cost around 1.67 billion baht and is set to begin in 2022. This phase will focus on pandemic prevention, but will also boast a cancer treatment centre, which will reportedly include radiotherapy services.

For all your medical needs, you can refer to MyMediTravel and discuss your options with their Patient Support team, they’ll help you to discover the best facility and specialist at the best price available.

Courtesy: Published at The Thaiger on July 23, 2020 by Nation Thailand

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International medical hub proposed by outgoing Phuket governor

19/06/2020
Local Thai media reported that Phuket has proposed a new project called “The International Medical and Public Health Service” to create more long term financial security and diversification, and value-added tourism in Phuket, as the island has taken a heavy financial hit due to the effects of Covid-19pandemic.
International medical hub proposed by outgoing Phuket governor | News by The Thaiger
The project will use state owned property near the Tha Chat Chai Police Station in Mai Khao, approximately 140 rai of land, (16 kilometres away from Phuket Airport). The idea for this project came from the outgoing Phuket governor, the director of Vachira Phuket hospital, public health minister of Phuket and various private sectors.
International medical hub proposed by outgoing Phuket governor | News by The Thaiger
According to local media, the project would become a contemporary international medical hub. If the project is supported by the government, it will be the focus of health tourism in Thailand and help draw quality tourists from around the world.
International medical hub proposed by outgoing Phuket governor | News by The Thaiger
Courtesy: Published at The Thaiger on June 19, 2020 by Phuket Andaman News
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Top 10 countries for investment in Covid era – World Trade Group

30/05/2020

“Where to invest?”. Where is the next ‘good thing’ as the world starts to look to opportunities and new business models? Looking around the world, and perusing stock markets, there continues to be some traditional businesses failing but others thriving during the Covid-19 era.

Investors look to countries with economical and political stability when choosing to invest money and unveil new businesses. Whilst global depression, drops in GDP, bankruptcy, and a realignment of trade and supply chains swirls around us, there will be emerging opportunities too. According to London Post, CEO World Magazine and the World Trade Group, some countries are very fortified to withstand an economic crash.

“They have a lot of internal growth drivers with minimal affiliation with global markets. They will be the least affected. The best countries to invest in 2020 are these fortified countries.”

Their report lists four unique factors motivate an individual or a business entity to invest in a country. These are the country’s natural resources, markets, efficiency, and strategic assets.

The London Post has used this information and parameters to compile The 2020 Best Countries to Invest In ranking based on a broad list of ten equally weighted attributes: corruption index, tax environment, economical stability, entrepreneurial freedom, innovativeness, skilled labor force and technological expertise, infrastructure, investor protection, red tape, and quality of life.

Somehow, and perhaps surprisingly to people who run businesses in Thailand, the Land of Smiles has scraped into the Number 2 position. 4 of the recommended Top 10 countries are in south east Asia.

1. Croatia

The country’s growth is amazing because in 2019, it was ranked 25 positions lower in this list. The European country’s stable economy, coupled with an entrepreneurial and innovative population, has made foreign investors very optimistic about the “progressive business environment”. In the first quarter of 2019, Croatia had a whooping foreign direct investment of more than $389 million.

2. Thailand

Thailand occupies the second position on the 2020 Best Countries to Invest In ranking. The country has been able to capitalise on trade tension between the US and China. In the first nine months of 2019, the country received a 69% increase in the total value of Foreign Direct Investment applications, as compared to 2018. 65% of these applications were led by the automotive, electronics and electrical, and digital sectors. The growth of the Thai market and momentum indicators remain strong. Forbes listed the country as the 8th best-emerging market of 2020.

3. The United Kingdom

The UK is economically stable and has a skilled labour force and technological expertise. It is the sixth country attracting inflow of foreign direct investment. In the first 7 months of 2019, the US and Asian tech firms invested $3.7 billion in tech companies in the country, thus surpassing the $2.9 billion invested in the previous year.

“Despite Brexit, the UK remains the fifth largest economy in the world and has an industrialised and competitive market.”

4. Indonesia

With about 650 listed equities and a market cap exceeding $500 billion, Indonesia boasts of one of the largest Asian stock markets. The report claims the Indonesian consumer market is largely undiscovered, hence its huge potentials.

“The robust economy and heavy investment in transportation and infrastructure make this country worthy of your investment. The only downside is that non-citizens are limited to only leasehold properties.”

5. India

According to the UN, India was one of the top 10 countries with the highest inflow of foreign direct investment. India has been in the top 5 of the best countries to invest in since 2019.

“The Asian giant has invested so much in research and development and, and she is among the top countries having a comparatively skilled workforce.”

6. Italy

Italy is one of the top countries attracting investors in 2020. This level of economical stability, its robust manufacturing sector, and the country’s stable political environment make it a good choice for investment.

7. Australia

Australia boasts of more than 25 years of continued economic growth. It is the 9th country with the most direct foreign investment in 2020. Australia has been in the top 10 for ten years now.

8. Vietnam

Like Thailand, Vietnam has capitalised on the trade tension between China and the US.In recent years China’s southern neighbour has gradually risen to become a formidable manufacturing hub. This growth became even more evident when multinational corporations like Samsung began relocating are from China into Vietnam.

9. Latvia

Latvia boasts of macroeconomic and political stability as well as good accessibility to large markets and a very business-friendly environment, according to the report. The government encourages investors by offering them a wide variety of advantages. Investors are offered significant cost advantages, including real estate expenses, competitive tax rates, and competitive labor.

10. Singapore

Aside from being the 10th best country to invest in 2020, Singapore is also the 10th country attracting the most foreign investments. Singapore’s strong economic outlook has made many investors very optimistic. The country’s world-class business-friendly environment is one major attribute attracting investors.

Courtesy: Published at The Thaiger on May 30, 2020 by London Post

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Moody’s Investors Service Gives Thailand Stable Outlook

28/04/2020

Global geopolitical considerations have necessitated a significant detour for Thailand’s economy, from positive to stable. What factors are driving the financial markets?

The Thai Economy will Roar Again, in Time

Leading global ratings agency, Moody’s (Moody’s Investors Service) has issued new guidance on the Thai economy. Given the geopolitical considerations currently taking place, the leading ratings agency has downgraded the Thai credit outlook from positive to stable. In the midst of a growing economic slowdown, Moody’s has revised its forecasts for the Government of Thailand.

Now, a rating of Baa1 has been issued, and the Thai forex commercial paper is now rated at P-2. This currency rating for the Thai baht is a global short-term ratings assessment. The P-2 rating for issuers indicates that the currency is rated Prime-2 (a rung below P-1 which is the premier currency rating). P-2 designations reflect that the country has a ‘strong ability to repay short-term debt obligations’.

The Bank of Thailand is working hard to ease forex rules and regulations as tremendous pressure is brought to bear on the Thai baht. In the absence of the recent Moody’s ratings assessment, global economic pressures have a strong impact on the economies of emerging market countries. The Bank of Thailand (BoT) upped the limit from $200,000-$1 million, for the amount of proceeds that do not need to be repatriated.

This can be used to help exporters with forex expenses, without any need to send the funds back to Thailand. This reduces transfer costs for operators, saving money and increasing profitability for Thai businesses in the process. The currency has appreciated sharply over the past year, but has slowed dramatically in Q1 and Q2, 2020. An estimated 5% + depreciation against the USD has already taken place, as traders and investors shore up their portfolios with a focus on USD, GBP, EUR, and CHF.

The Moody’s Downgrade 

In July 2019, Moody’s rated the Thai economy as positive with bullish prospects. In light of current considerations where global trade in goods and services has come to a standstill, the downgrade to stable has been made. Among the many challenges in the Thai economy are political instability and the implementation of government-mandated policies.

The massive economic shocks endured by the Thai economy are particularly devastating to the travel and tourism industry – the major driver of economic activity on the islands. A failing economic outlook for the world economy (short to medium term) is perpetuating instability and furthering the impact of the credit shock.

The ramifications of the current ‘new normal’ are a threat to the social aspects of society, particularly public health and safety considerations. The unprecedented decline in travel, tourism, and entertainment-related revenue streams has hamstrung the Thai economy. These economic shocks are compounding problems across the board.

Yet, despite the instability over the short-term, the Moody’s rating of Baa1 is a strong indication that Thailand will be able to counter the economic shocks that are currently being felt. Such is the strength of the Thailand economy that ratings agencies believe the sound fiscal structure will allow the country to sustain a short-to-medium term economic shock and still rebound. The diversity of the economy is its saving grace:

  • Exports include processed foods, automobiles, and agricultural commodities
  • 90% of GDP is comprised of the service sectors and industry sectors
  • 10% of GDP is made up of small-scale farms in the agricultural sector, which employs 33% of the workforce

Thailand’s GDP in 2019 was $520 billion, up from $504.99 billion in 2018. The current year’s estimate is between $520 billion and $540 billion. The economy generates a GDP per capita of $6,361.60 (2019) with a GDP growth rate of 0.20%. All projections for GDP growth moving forward are positive despite the geopolitical uncertainty over the short term.

Several challenges remain for the Thai economy, notably the ageing population, and shortages of skilled labor. Provided these issues are addressed, the country can remain competitive. As far as foreign currency bond holdings are concerned, the forex deposit ceiling – long-term – will be pegged at Baa1, and the forex currency deposit ceiling – short-term – is a lock at P-2.

Sectors Hard-Hit by Current Turmoil

Notable among the many struggling industries in Thailand are restaurants, bars, hotels, and resorts. The Thai economy gets a $5.5 billion GDP boost from bars and nightclubs around the country every year. Current regulations have locked down the industry, preventing any further contributions from tourists. With restaurants limited to take-out and delivery services only, the entire country is ailing. The nightlife in Bangkok – a staple of the economy – has all but ground to a halt. This internationally lauded party city has been relegated to hibernation status for the time being.

The effects of the lockdown have halted currency inflows, which has negatively impacted the exchange rate value of Thai baht. The broader tourism industry in Thailand ranks #4 in the world in terms of revenue streams at $6.52 billion. Much of that has been drained from the economy due to ongoing travel restrictions. Social distancing limits gatherings to small numbers of patrons, spaced at least 6 feet apart – an unsustainable business model given restaurant capacity requirements. The expectation is that the lifting of limits will bring tourists back in their droves, but current economic realities tend to suggest a long-term recovery is on the cards.

Courtesy: Published at The Phuket News on April 28, 2020 by In Conjunction

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Thai stock exchange pulls 30 minute circuit breaker

13/03/2020

The Stock Exchange of Thailand (SET) had pulled a 30 minute “circuit breaker” to suspend trade between 9:59 and 10:29am leading to a fall at 11am, when the SET fell by 78.95 points, or 7.08%, to 1,035.96. Foreign investors made net sales of 1.929 billion baht in the stock market and 13.646 billion in the bond market. Most global stock prices also dropped resulting from uncertainty among investors following the Covid-19 outbreak, which has heated up recently in Europe and the US.

A stock analyst at Krungsri Securities said, “the SET had pulled the circuit breaker due to foreign investors selling off their stocks after the US President Donald Trump had suspended travel from European nations for 30 days”.

“We advise investors who cannot take risks to hold cash and monitor the situation, while those who can take risks should buy stocks for short-term profit-taking, especially stocks whose price has fallen sharply and pay high dividends regularly.”

The analyst recommended three groups of stocks for investors…

● Defensive stocks which pay high dividends, such as ADVANC, INTUCH, and TTW.
● Retail stocks, which gained buying power after the government returned the electricity metre insurance for a total amount of Bt30 billion, such as CPALL, HMPRO, and BJC.
● Financial stocks, which gain benefit from the interest rate cut, such as MTC, SAWAD, and KTC.

Courtesy: Published at The Thaiger on March 13, 2020

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Thailand CP Group’s take over bid for Tesco Asia

10/03/2020

The 332.6 billion baht deal between the UK’s Tesco-branded Asian interests and Thai conglomerate CP Group, is coming under scrutiny as there are fears it could lead to a mega-retail monopoly. In the deal, the Chareon Pokphand Group will acquire all of Tesco Asia. CPAll and CPF informed the Stock Exchange of Thailand of their surprise investment in Tesco Asia yesterday.

Before the deal can be approved by the Trade Competition Commission, the chairperson of the anti-trust commission, Sakon Varanyuwatana, says that the impact of such a buy-out must be assessed.

“We are waiting for the parties involved to submit details of the deal , under which Chareon Pokphand Group will acquire all of Tesco Asia.”

“The commission had closely monitored reports on its progress but refrained from making comment as it could affect ongoing negotiations and the stock prices of both parties.”

The commission says they expect both Tesco and CP to provide full disclosure about the financial arrangements before they can expect to seek approval from the commission. CP All already operates 8,127 7-eleven stores across Thailand.

“It might amount to a market monopoly and power over other retail store chains if it also acquires the Tesco Lotus brand.”

Tesco announced yesterday the sale of its business in Thailand and Malaysia to CP Group in a deal valued around US$10.6 billion (332.6 billion baht).

A few details about the proposed deal indicate the Charoen Pokphand Group and Charoen Pokphand Holdings would acquire 40% of Tesco Asia’s business in the Thailand and Malaysia, its subsidiary CP All Public Company 40%, with Charoen Pokphan Foods Public Company holding the balance of 20% via its wholly-owned subsidiary CP Merchandising Company, according to The Nation. 

Courtesy: Published at The Thaiger on March 10, 2020

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