1 December 2014

Daily Market Outlook

1

Please see disclaimer on last page

Pre-ECB Consolidation

Expect the SET to trade in a tight range today, adjusting slightly

downwards as the local bourse is weighed down by plunging oil

prices amidst a global mood of consolidation. Locally there is good

news in the form of a potential increase in fiscal spending next year,

but so far very little coverage has been given to that, as politics is

currently taking center stage nationally. The global mood is one of

the opposite with investors paying little heed to geopolitics and

instead waiting on ECB action this week.

Local issues: More fiscal spending on the cards. An undisclosed source told

the Bangkok Post that should the government’s revenue

collection exceed its target at the time, the Finance Ministry will

increase its mid-year budget to further boost the economy.

Comment: Any additional spending from government would

give economy a much needed boost as growth is still

faltering. Revenue collection for fiscal year 2014 that ended

September fell Bt201bn short of target. However, revenue

collection of Bt171bn in October was 5.1% higher than the

estimate (though still 4% less YoY).

Small cap stocks under review. Various brokerage houses are

urging the SET to consider additional measures to curb

speculation on small cap stocks – specifically to narrow the

minimal increment (tick size) and widening each board lot. SET is

however saying that while such measures would be considered if

necessary it will first see the effect of new measures on trading

alert, to come into force in 2015. (Bangkok Post)

World waiting to hear from PM Prayut. In an exclusive interview

with The Nation, Philipp Roesler, managing director of the World

Economic Forum, said the global community is keen to see how

the military-backed government will steer Thailand through issues

such as corruption, infrastructure investments, as well as an

eventual return to elections. In light of this, the WEF has invited

PM Prayut to attend its annual conference in Davos, Switzerland

between 21st and 24th of January. (The Nation) Comment: PM

appeasing investors’ concerns then would likely increase

FDI.

More urbanization predicted. The director-general of the Real

Estate Information Center (REIC) has said rapid urbanization is a

key trend around the world, but even more so among ASEAN

countries and would definitely boost residential market growth in

metropolitan and neighboring areas. (Bangkok Post)

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: 02 680 509

Major Indices Close Chg %Chg

SET 1,593.91 -5.9 -0.4

SET50 1,069.36 -5.4 -0.5

SET P/E (x) 18.9

SET P/BV (x) 2.3

SET Div. Yield (%) 2.8

Dow Jones 17,828.24 +0.5 +0.0

S&P 500 2,067.56 -5.3 -0.3

NASDAQ 4,791.63 +4.3 +0.1

UK 6,722.62 -0.8 -0.0

Germany 9,980.85 +6.0 +0.1

France 4,390.18 +7.8 +0.2

Japan 17,459.85 +211.4 +1.2

South Korea 1,980.78 -1.3 -0.1

Hong Kong 23,987.45 -16.8 -0.1

China 2,682.92 +52.4 +2.0

Taiwan 9,187.15 +21.8 +0.2

Singapore 3,350.50 +9.5 +0.3

Malaysia 1,820.89 -9.0 -0.5

Indonesia 5,149.89 +4.6 +0.1

Philippines 7,294.38 +29.0 +0.4

Trading Summary Buy Sell Net

Institution 3,941 6,561 -2,620

Proprietary 4,204 3,494 711

Foreign 8,580 7,450 1,131

Individuals 30,106 29,327 779

Total Trading Value 46,832 Btm

Most Active Value Value Close %Chg

PTTEP 3,610 135.50 -5.2

MTLS 2,849 11.70 -2.5

PTT 2,507 383.00 -1.8

SCB 1,331 196.50 +1.8

TRUE 1,322 12.10 +0.0

Commodity Futures Close Chg %Chg

US Crude 66.15 -7.5 -10.2

Brent Crude 70.15 -2.4 -3.3

Gold 1,175.20 -21.4 -1.8

FX Rates Close Chg %Chg

USD/THB 32.85 +0.1 +0.3

EUR/USD 1.25 -0.0 -0.1

USD/JPY 118.61 +0.9 +0.8

USD/CNY 6.14 +0.0 +0.1

Source: Bisnews, Bloomberg

1 December 2014

Daily Market Outlook

2

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AOT (Bt278) posted a net profit of Bt12.2bn in FY14 (Oct 13 - Sep 14), down

25.2% YoY. Although FY14 operating revenue slightly improved to Bt37.6bn, up

2.1% YoY as a result from the Thai tourism was slowdown due to political turmoil,

excluding extra items, AOT still reported strong performance with normalized

profit at Bt11.9bn up 20.2%YoY. (SET) Comment: Slightly below our earnings

estimate. We maintain our earnings forecast for 2015 but will revise up our

target price for 2015 as the closing price has already hit our existing 2015

target price (Bt278).

EGCO has earmarked Bt61.5bn CAPEX, excluding M&A, for 2015-18 to develop

new power plants and expand production capacity. With this CAPEX, its net

profits are expected to reach Bt10.0bn in 2019 from Bt8.0bn estimate for this

year. Meanwhile, EGCO is now considering a potential investment in Myanmar's

Dawei megaproject in the 70:30 partnership with ITD for a 300-MW gas-fired

power plant, which is expected to start commercial operation in 2019. (Bangkok

Post/ InfoQuest)

Global issues Friday saw global consolidation ahead of ECB’s meeting this week, as inflation

and labor market data were just as lackluster as the market predicted, allowing

for a steady build-up on anticipation of a full-blown QE. The US holiday resulted

in lower volume but that is likely to reverse this week, albeit only to a limited

degree, as many fund managers have already taken off on holiday. Political

concerns are brimming at the periphery, both old ones such as Ebola and new

ones such as the UK’s rather aggressive stance on immigration threatening the

EU, but for now their impacts on markets are limited. USA Wall Street stocks ended mostly flat on Friday in a holiday-shortened session

as a massive decline in the energy sector offset strength in consumer names, but

major indices rose for a sixth straight week. (Reuters)

The dollar gained on Friday as sliding oil prices stirred disinflation fears in the

euro zone and Japan. The euro weakened to US$1.2442. The single currency is

under pressure ahead of next week's ECB meeting, where the central bank is

expected to signal further action to ward off disinflation. The dollar neared 7-year

highs against the yen, last trading at 118.68 yen. The dollar index gained 0.79%

to 88.301. (Reuters)

US benchmark and long-dated Treasury yields fell for a sixth straight session

and notched their second straight monthly declines on Friday on signs of

disinflation. The yields of 10-year US Treasury notes dropped to yield 2.17% from

2.23% on Wednesday. The yield hit 2.1658%, the lowest level since October 21.

(Reuters)

Europe European stock markets closed flat mixed on Friday with FTSE virtually

unchanged while German DAX edged up 0.06% to extend its winning streak to

12 sessions. (Reuters)

1 December 2014

Daily Market Outlook

3

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Eurozone inflation data came in right on expectations in November at a

+0.3% YoY, against +0.4% YoY in October. Eurozone jobless rate in October

was 11.5%, versus 11.5% in the previous month and 11.5% market expectations.

(Reuters) China The focus today will be on the China Manufacturing PMI both the official and

HSBC version. Concerns that weakening demand out of China is part of the

reason behind the big fall in commodity prices. If the China PMI data disappoints

and especially if the HSBC Manufacturing PMI dips below 50 - it could weigh on

commodities further. (Reuters)

Japan Japan's annual core consumer inflation slowed for a second straight month

in September, adding to evidence the BOJ will miss its 2% price goal. The 3.0%

YoY gain in the core CPI, which excludes volatile prices of fresh food but includes

oil products, matched the median estimate. The core CPI rose 3.1% in August.

However, stripping out effects of April's sales tax increase to 8% from 5%, the

annual core consumer inflation was 1% in September. (Reuters)

Commodities Gold fell over 2% on Friday, extending a 3-day slide to a 2-week low on free-

falling oil prices, a strong dollar and Swiss’ votes on Sunday rejecting proposals

for SNB to boost its gold reserves. Spot gold was down 1.9% at US$1,168.56 an

ounce, after hitting a low of US$1,165.04. US gold futures for December delivery

closed down US$21.40 an ounce at US$1,175.20, but ended November slightly

higher. (Reuters)

US crude tumbled 10% in its biggest one-day drop in more than 5 years on

Friday, and Brent broke below US$70 a barrel, following OPEC's decision not to

cut output. WTI settled down US$7.54 at US$66.15 a barrel. Brent crude finished

down US$2.43 (-3.3%) at US$70.15. It fell to as low as US$69.78 on the day, a

bottom since May 2010. (Reuters)

1 December 2014

Daily Market Outlook

4

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Date Regions

1-Dec-14 US

3-Dec-14 EU

US

4-Dec-14 EU

EU

5-Dec-14 US

US

Mon Tue Wed Thu Fri

1 2 3 4 5

8 9 10 11 12

XD

CITY : 0.16 Bt

IRC : 0.6269 Bt

15 16 17 18 19

XD

UIC : 0.04728 Bt

22 23 24 25 26

29 30 31

Unemployment Rate

December 2014

Economic Indicators

ISM Manufacturing PMI

Gross Domestic Product

ISM Non-Manufacturing PMI

ECB Interest Rate Decision

ECB Monetary Policy Statement

Nonfarm Payrolls

1 December 2014

CG Report

5

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Corporate Governance Report of Thai Listed Companies (CGR). CG Rating by the Thai Institute of Directors Association (IOD) in 2013.

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

80 – 89

70 – 79

60 – 69

50 – 59

Below 50

No logo given

Excellent

Very Good

Good

Satisfactory

Pass

N/A

1 December 2014

Contact

6

Please see disclaimer on last page

This report has been prepared by Asia Wealth Securities Company Limited (“AWS”). The information herein has been obtained from sources believed to be reliable and accurate, but AWS makes no representation as to the accuracy and completeness of such information. AWS does not accept any liability for any loss or damage of any kind arising out of the use of such information or opinions in this report. Before making your own independent decision to invest or enter into transaction, investors should study this report carefully and should review information relating. All rights are reserved. This report may not be reproduced, distributed or published by any person in any manner for any purpose without permission of AWS. Investment in securities has risks. Investors are advised to consider carefully before making decisions.

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