The stock Exchange of Thailand 50 Index last week edged up 2.65 points, or 0.52 per cent, to 510.85 points, while the SET 50 Index futures, with S50U09, with the nearest maturity expiring at the end of this month, rose 2.90 points, or 0.57 per cent, to 511.6 points.
Stock markets around the world last week increased from the previous week. The Dow Jones Industrial Average set the year's record to close at 9,791.71 points on the back of the higher production figure in August,an increase for two straight months, the three-year high of US retail sales, and fed Reserve Chairman Ben Bernanke's speech that the recession is likely over.
The positive factors enhanced investors' confidence.
The SET index last week also climbed up from the previous week. Energy stocks were the most active. Some investors, however, stayed on the sideline in latje last week to see the outcome of the red-shirt rally stagfed on Saturday.
Average dailfutures trading was 10,652 contracts, down by 3,413. Open interest contracts as of last Thursday numbered 53,693, up 2,496 from the previous week.
Total weekly futures trading contracts numbered 53,259 worth a combined Bt25.21 billion, Of these, 42,625 were for SET 50 Index futures, 3,710 were for single-stock futures, 4,324 were for gold futures and 2,600 were for SET 50 Index options.
Tuesday, September 22, 2009
Sunday, September 20, 2009
AUSTRALIAN ARRESTED OVER GOLD SCAM
A 64-year-old Australian accused of swindling investors in Pattaya out of millions of baht was arrested last week at Suvarnabhumi Airport by immigration officials while trying to re-enter the country.
A warrant for the arrest of Lance Frederick Shaw was issued by Pattaya police in July last year for his alleged involvement in a Ponzi investment scheme, which fraudulently promises to pay returns to separate investors from their own money or money paid by subsequent investors, rather than from any actual profit earned.
Mr Shaw is being held at Nong Palai prison on fraud charges and will not be granted bail due to the seriousness and number of charges, Pattaya police said. A police official estimated Mr Shaw allegedly defrauded investors of 10 million baht.
Six cases have been filed against the Australian, though the number has continued to increase since his arrest. The Bangkok Post's Spectrum magazine reported on the allegations against Mr Shaw in an Aug 16 article "Gold fever sinks a posse of investors".
The investors, mostly from the UK and Australia, alleged they lost amounts between US$10,000 (341,000 baht) and $250,000 each investing in an online gold investment vehicle known as Hiperfinance.com which advertised monthly profits of 10-20%.
Mr Shaw denied any wrongdoing, saying he was was merely an investor who lost $20 million himself.
He said that while he promoted the scheme to others, he was not behind the operation. Allegations against Mr Shaw will feature in an upcoming episode of Big Trouble In Tourist Thailand, a television series airing on the UK's Bravo Channel.
A warrant for the arrest of Lance Frederick Shaw was issued by Pattaya police in July last year for his alleged involvement in a Ponzi investment scheme, which fraudulently promises to pay returns to separate investors from their own money or money paid by subsequent investors, rather than from any actual profit earned.
Mr Shaw is being held at Nong Palai prison on fraud charges and will not be granted bail due to the seriousness and number of charges, Pattaya police said. A police official estimated Mr Shaw allegedly defrauded investors of 10 million baht.
Six cases have been filed against the Australian, though the number has continued to increase since his arrest. The Bangkok Post's Spectrum magazine reported on the allegations against Mr Shaw in an Aug 16 article "Gold fever sinks a posse of investors".
The investors, mostly from the UK and Australia, alleged they lost amounts between US$10,000 (341,000 baht) and $250,000 each investing in an online gold investment vehicle known as Hiperfinance.com which advertised monthly profits of 10-20%.
Mr Shaw denied any wrongdoing, saying he was was merely an investor who lost $20 million himself.
He said that while he promoted the scheme to others, he was not behind the operation. Allegations against Mr Shaw will feature in an upcoming episode of Big Trouble In Tourist Thailand, a television series airing on the UK's Bravo Channel.
Friday, September 18, 2009
Glitch hits TFEX
The Thailand Futures Exchange was forced to delay its preopening session by 1.45 hours yesterday due to technical problems.
Pre-opening was delayed from the normal start at 9.15 to run from 11-11.15 am,15 minutes shorter than normal, with the opening session set from 11.15 to 12.30. The afternoon session was opened normally, with pre-opening from 14.00-14.30 and trading from 14.30-16.55.
Trade on the SET, the Market for Alternative Investment and the Bond Electronic Exchange was normal.
Pre-opening was delayed from the normal start at 9.15 to run from 11-11.15 am,15 minutes shorter than normal, with the opening session set from 11.15 to 12.30. The afternoon session was opened normally, with pre-opening from 14.00-14.30 and trading from 14.30-16.55.
Trade on the SET, the Market for Alternative Investment and the Bond Electronic Exchange was normal.
Monday, September 7, 2009
Prices to top $1,000 this week
Gold prices yesterday continued to climb near US$1,000 per ounce amid investor concerns about rising inflation and fresh hiccups for the global economic recovery.
Gold in Hong Kong yesterday closed at $995.5 to $996.5 per ounce, up from $987 to $988 on Friday.
In the local market, the buying price for 99.99% gold bars was 16,175.72 baht per baht-weight, up from 16,084.76 on Friday. Prices for 96.5% pure bars were quoted with a buying price of 15,800 baht per baht-weight.
On the Thailand Futures Exchange,trading activity has leapt in recent sessions, with gold futures contracts hitting an all-time high last Thursday of 2.12 billion baht. Yesterday volume for gold contracts totalled 1,026, with open interest of 4,708 contracts.
MTS Gold Futures, a TFEX gold broker,expects gold to break $1,000 per ounce within a few days.
Concern about rising bank collapses in the US and uncertainties about the global economic recovery have helped push up prices, said MTS Gold president Kritcharat Hirunyasiri.
Reports that bullion held in the SPDR Gold Trust, the world's largest gold exchange traded fund, rose 14.65 tonnes on Thursday also helped push up prices,said Mr Kritcharat.
"Investors are concerned about the global economy. This is putting pressure on funds to shift to lower-risk assets,"he said."Inflation is another concern,as is the trend towards US dollar depreciation."
He predicted that trading for TFEX gold futures will reach 900 contracts per day this month, as local investors follow the global trend. Contracts for October gold futures (GFV09) are likely to trade between 15,700 to 15,900 baht, he added.
"Gold futures will be more attractive for investment in the future and we will see trading value reach 3 billion baht per day very soon," he said.
Jitti Tangsithpakdi, president of the Gold Traders Association, said gold prices could post a modest decline this week as investors take profits from recent gains.
"However, for the long term we are confident that the price will continue to rise, and this year will set a new high.Last year it had its highest price at $1,034 per ounce," he said.
Apichat Laksanasirisak, managing director of TC Ausiris Futures, predicted gold will hit $1,100 per ounce within six months due to factors such as inflation,the weak US currency and asset allocation shifting from equity to gold.
Gold in Hong Kong yesterday closed at $995.5 to $996.5 per ounce, up from $987 to $988 on Friday.
In the local market, the buying price for 99.99% gold bars was 16,175.72 baht per baht-weight, up from 16,084.76 on Friday. Prices for 96.5% pure bars were quoted with a buying price of 15,800 baht per baht-weight.
On the Thailand Futures Exchange,trading activity has leapt in recent sessions, with gold futures contracts hitting an all-time high last Thursday of 2.12 billion baht. Yesterday volume for gold contracts totalled 1,026, with open interest of 4,708 contracts.
MTS Gold Futures, a TFEX gold broker,expects gold to break $1,000 per ounce within a few days.
Concern about rising bank collapses in the US and uncertainties about the global economic recovery have helped push up prices, said MTS Gold president Kritcharat Hirunyasiri.
Reports that bullion held in the SPDR Gold Trust, the world's largest gold exchange traded fund, rose 14.65 tonnes on Thursday also helped push up prices,said Mr Kritcharat.
"Investors are concerned about the global economy. This is putting pressure on funds to shift to lower-risk assets,"he said."Inflation is another concern,as is the trend towards US dollar depreciation."
He predicted that trading for TFEX gold futures will reach 900 contracts per day this month, as local investors follow the global trend. Contracts for October gold futures (GFV09) are likely to trade between 15,700 to 15,900 baht, he added.
"Gold futures will be more attractive for investment in the future and we will see trading value reach 3 billion baht per day very soon," he said.
Jitti Tangsithpakdi, president of the Gold Traders Association, said gold prices could post a modest decline this week as investors take profits from recent gains.
"However, for the long term we are confident that the price will continue to rise, and this year will set a new high.Last year it had its highest price at $1,034 per ounce," he said.
Apichat Laksanasirisak, managing director of TC Ausiris Futures, predicted gold will hit $1,100 per ounce within six months due to factors such as inflation,the weak US currency and asset allocation shifting from equity to gold.
Sunday, September 6, 2009
TFEX sees slowdown in hedging need
The Thailand Futures Exchange (TFEX)expects trading to slow as the stock market rally reduces the need for hedging.
Trading on the bourse may drop to about 10,000 contracts a day in the second half from 10,678 in the first six months,said Kesara Manchusree, the TFEX managing director. Average daily volume jumped 63% in the first half, boosted by record trading of 16,542 contracts a day in June, she said.
"Individual investors prefer to directly invest in equity securities now because they have more confidence in the stock market," Ms Kesara said."The demand for hedging instruments surged in the second quarter because they were unsure the rally would be sustainable and the market was very volatile."
The SET index jumped 48% so far this year, set for its best performance in six years, on expectations that an economic rebound will boost corporate earnings.Thailand's economy may expand in the fourth quarter after contracting the past four quarters, as the government spends more and exports recover, Finance Minister Korn Chatikavanich said this week.
Futures trading has averaged 10,690 contracts a day so far in September,down from 12,205 in August and 15,001 in July, according to TFEX data.
The number of futures trading accounts has risen to 25,000 from 15,894 at the end of last year. About 55% of the accounts are individual investors, she said.
Kim Eng Securities, the country's biggest stock brokerage, said recently that derivative trading would be the main area of growth for most local securities companies and it added more analysts and traders to cope with the increased business volume.
Trading on the bourse may drop to about 10,000 contracts a day in the second half from 10,678 in the first six months,said Kesara Manchusree, the TFEX managing director. Average daily volume jumped 63% in the first half, boosted by record trading of 16,542 contracts a day in June, she said.
"Individual investors prefer to directly invest in equity securities now because they have more confidence in the stock market," Ms Kesara said."The demand for hedging instruments surged in the second quarter because they were unsure the rally would be sustainable and the market was very volatile."
The SET index jumped 48% so far this year, set for its best performance in six years, on expectations that an economic rebound will boost corporate earnings.Thailand's economy may expand in the fourth quarter after contracting the past four quarters, as the government spends more and exports recover, Finance Minister Korn Chatikavanich said this week.
Futures trading has averaged 10,690 contracts a day so far in September,down from 12,205 in August and 15,001 in July, according to TFEX data.
The number of futures trading accounts has risen to 25,000 from 15,894 at the end of last year. About 55% of the accounts are individual investors, she said.
Kim Eng Securities, the country's biggest stock brokerage, said recently that derivative trading would be the main area of growth for most local securities companies and it added more analysts and traders to cope with the increased business volume.
Monday, August 31, 2009
RALLIES FAIL TO SPUR SET
Last week the SET50 Index went up 7.86 points or 1.70 per cent to 470.69 while the SET50 Index Futures, with S50U09 having the nearest maturity expiring at the end of September, rose 7 points or 1.53 per cent to 463.9.
The Dow Jones Industrial Average surged throughout the week. Higher new home sales and the renomination of Federal Reserve chairman Ben Bernanke boosted investor confidence.
Other major stock markets also rallied, thanks to the rising oil price and higher confidence in the US economic turnaround.
The SET Index, however, moved narrowly as investors preferred staying on the sidelines despite the solid economic indicators announced by the Fiscal Policy Office and the rise in the petrol price.
Average daily futures trading volume was 5,558 contracts, lower than the previous week's 8,918. Openinterest contracts as of last Thursday numbered 42,886, up 988 from the previous week.
The total weekly futures volume was 44,592 contracts worth Bt19.81 billion. Of these, 35,892 were for SET 50 Index Futures, 2,648 were singlestock futures, 3,967 were gold futures and 2,085 were SET50 Index options.
The Dow Jones Industrial Average surged throughout the week. Higher new home sales and the renomination of Federal Reserve chairman Ben Bernanke boosted investor confidence.
Other major stock markets also rallied, thanks to the rising oil price and higher confidence in the US economic turnaround.
The SET Index, however, moved narrowly as investors preferred staying on the sidelines despite the solid economic indicators announced by the Fiscal Policy Office and the rise in the petrol price.
Average daily futures trading volume was 5,558 contracts, lower than the previous week's 8,918. Openinterest contracts as of last Thursday numbered 42,886, up 988 from the previous week.
The total weekly futures volume was 44,592 contracts worth Bt19.81 billion. Of these, 35,892 were for SET 50 Index Futures, 2,648 were singlestock futures, 3,967 were gold futures and 2,085 were SET50 Index options.
Friday, August 28, 2009
GOLD TRADERS WARN OF VOLATILITY IN WEEKS AHEAD
The next few weeks will be a crucial period for gold prices, and slight volatility is expected to indicate whether bullion prices will rise to US$1,000 (Bt34,100) or fall to $880 an ounce this year.
Gold traders have warned of volatility from the derivatives market rather than physical gold trading. Oil prices and the US dollar are still affecting gold prices more than real gold consumption is, but it is uncertain whether oil prices will continue to increase, because movements to date are believed to have been forced by hedging.
Gold Traders Association deputy secretary-general Kritcharat Hirunyasiri said that over the past month, there had been no clear signs of whether gold prices would rise or fall. Prices had moved in a range of $935 to $965 an ounce, but the range was narrowing, and it was expected that a clear direction would become obvious within the next two weeks.
Kritcharat said if the gold price broke through the $963-an-ounce level, it could rise to $980 and then $1,000 by year-end. However, if it failed to break $930 an ounce, the price could fall to $900.
"The dollar has more of an effect on gold prices," Kritcharat said. "For example, last Friday night the gold price increased $15 per ounce after the dollar depreciated from 1.422 to the euro 1.435, while oil prices made a smaller impact."
Although the golbal economy has begun to recover from the economic crisis, the US Federal Reserve is unlikely to adjust its interest rate in the short term. Inflation remains low and does not affect gold prices much even though inflation and gold prices are correlated, he said.
President Jitti Tangsithpakdi said it was possible gold would reach $1,000 an ounce this year, because the global economy had still not stabilised. Therefore, people are still investing in gold. As well, there is always high demand for gold at the end of a year.
However, gold prices will not swing as much as they did last year, because funds are investing in many markets, including equities, oil and gold, he said.
Secretary-general Pichaya Phisuthikul said that in the middle of the month, the gold price declined, but it increased again in the past week as oil prices rose to $60 to $70 a barrel.
Gold prices will remain volatile, he said. Normally, gold prices move contrary to the Equity Index, but recently when equities have risen, gold prices have sometimes risen, as well.
"The present gold price is not related to real consumption at all but rather affected by funds investing in the gold market.
"The recovery, which has been seen in stock markets like Wall Street, including oil-price increases, is still not certain. I believe the economy, which has been severely damaged, needs more time for recovery. Therefore, the present oil-price and Equity Index rises may be an illusion, because they show an adjustment much better than fundamentals," Pichaya said.
If oil prices and the Equity Indexes fall again, the gold price will also be affected. In Pichaya's view, gold prices are capable of peaking at $980 an ounce or bottoming at $880.
Meanwhile, Bloomberg said gold, little changed in London yesterday, might decline as a stronger dollar erodes the metal's appeal as an alternative investment. Palladium rose to its highest price in almost a year.
The US Dollar Index, a six-currency gauge of the greenback's value, rebounded from a two-week low, gaining as much as 0.4 per cent. Gold, which typically moves inversely to the dollar, added 1.4 per cent last Friday, the most this month.
"The market is likely to retreat towards $925 to $930 an ounce, provided the dollar rebounds from current lows," said VTB Capital analyst Andrey Kryuchenkov in London.
Immediate-delivery bullion climbed 45 cents, or 0.1 per cent, to $954.30 an ounce yesterday after advancing 0.6 per cent last week.
December gold futures rose 90 cents, or 0.1 per cent, to $955.60 an ounce on the New York Mercantile Exchange's Comex division.
Gold traders have warned of volatility from the derivatives market rather than physical gold trading. Oil prices and the US dollar are still affecting gold prices more than real gold consumption is, but it is uncertain whether oil prices will continue to increase, because movements to date are believed to have been forced by hedging.
Gold Traders Association deputy secretary-general Kritcharat Hirunyasiri said that over the past month, there had been no clear signs of whether gold prices would rise or fall. Prices had moved in a range of $935 to $965 an ounce, but the range was narrowing, and it was expected that a clear direction would become obvious within the next two weeks.
Kritcharat said if the gold price broke through the $963-an-ounce level, it could rise to $980 and then $1,000 by year-end. However, if it failed to break $930 an ounce, the price could fall to $900.
"The dollar has more of an effect on gold prices," Kritcharat said. "For example, last Friday night the gold price increased $15 per ounce after the dollar depreciated from 1.422 to the euro 1.435, while oil prices made a smaller impact."
Although the golbal economy has begun to recover from the economic crisis, the US Federal Reserve is unlikely to adjust its interest rate in the short term. Inflation remains low and does not affect gold prices much even though inflation and gold prices are correlated, he said.
President Jitti Tangsithpakdi said it was possible gold would reach $1,000 an ounce this year, because the global economy had still not stabilised. Therefore, people are still investing in gold. As well, there is always high demand for gold at the end of a year.
However, gold prices will not swing as much as they did last year, because funds are investing in many markets, including equities, oil and gold, he said.
Secretary-general Pichaya Phisuthikul said that in the middle of the month, the gold price declined, but it increased again in the past week as oil prices rose to $60 to $70 a barrel.
Gold prices will remain volatile, he said. Normally, gold prices move contrary to the Equity Index, but recently when equities have risen, gold prices have sometimes risen, as well.
"The present gold price is not related to real consumption at all but rather affected by funds investing in the gold market.
"The recovery, which has been seen in stock markets like Wall Street, including oil-price increases, is still not certain. I believe the economy, which has been severely damaged, needs more time for recovery. Therefore, the present oil-price and Equity Index rises may be an illusion, because they show an adjustment much better than fundamentals," Pichaya said.
If oil prices and the Equity Indexes fall again, the gold price will also be affected. In Pichaya's view, gold prices are capable of peaking at $980 an ounce or bottoming at $880.
Meanwhile, Bloomberg said gold, little changed in London yesterday, might decline as a stronger dollar erodes the metal's appeal as an alternative investment. Palladium rose to its highest price in almost a year.
The US Dollar Index, a six-currency gauge of the greenback's value, rebounded from a two-week low, gaining as much as 0.4 per cent. Gold, which typically moves inversely to the dollar, added 1.4 per cent last Friday, the most this month.
"The market is likely to retreat towards $925 to $930 an ounce, provided the dollar rebounds from current lows," said VTB Capital analyst Andrey Kryuchenkov in London.
Immediate-delivery bullion climbed 45 cents, or 0.1 per cent, to $954.30 an ounce yesterday after advancing 0.6 per cent last week.
December gold futures rose 90 cents, or 0.1 per cent, to $955.60 an ounce on the New York Mercantile Exchange's Comex division.
Subscribe to:
Posts (Atom)