Up on Chinese reassurance & US strength3 Sep 2015 1 Please see disclaimer on last page Up on Chinese reassurance & US strength Expect the SET to adjust up today, as local positives

Daily Market Outlook 3 Sep 2015

1

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Up on Chinese reassurance & US strength

Expect the SET to adjust up today, as local positives receive further support from global factors. The announcement of further government mega-infrastructure spending, here in the form of relocating electrical wires to underground, as well as the expressed determination by the Deputy PM to push exports through new channels, are all likely to boost sentiment regarding the SET. On the global front, strong, but not too strong, US labor data, will reassure investors the world’s largest economy is progressing along nicely, while the pledge by Chinese brokers to support the market would also stem any Chinese-related fears.

Pick of the day: ADVANC (Bt238; BUY; AWS 15TP Bt290, Bloomberg 15TP Bt265.89) Advanced Info Service Pcl is our pick of the day for its market leadership in both fixed-line broadband (FBB) and mobile broadband businesses. Winning the upcoming 4Q auction on 11 Nov would assure this position and ADVANC will fight head on to win the bid. A new broadband trend should support the share price amid volatile stock market conditions. We anticipate ADVANC to win both 900 MHz and 1800 MHz spectrum licenses from the four available licenses. Consequently, ADVANC’s growth potential will be unlocked as early as the beginning of next year. The AIS brand has been so strong that it could monetize the data service trend better than its peers and we believe that it can do so for 4G and FBB services. Chulalongkorn University assessed ADVANC’s brand value at Bt574bn, the country’s highest brand value among all listed companies in 2015. FBB service, such as “AIS Playbox”, offers far better speed packages and more advanced technology with value-added services at the same or lower prices. We expect the company’s net profit to grow 15% this year and 16% next year. Its 2015 dividend yield should be decent at 5.8%, among the highest in the market. A buy signal has occurred in ADVANC daily chart for a while, indicating an upward price adjustment. If it manages to close above Bt248, the share should rally to test an important target at Bt263.00. Note that an upward adjustment should be limited in the medium term as a sell signal still remains in its weekly chart. However,

we expect to see a stronger price pattern soon. (Resistance:

239.00, 241.00, 244.00; Support: 237.00, 235.00, 232.00)

Local issues

Cabinet okays plan to put power lines underground.

The Cabinet on Tuesday approved the project of having

electrical wires and power lines put under the ground along

Bangkok’s 39 routes covering 127.3km. The project will use

a Bt143bn budget from the Metropolitan Electricity Authority

is meant to make the capital a more beautiful tourist

destination. (The Nation)

Major Indices Close Chg %Chg

SET 1,372.45 +10.1 +0.7

SET50 897.69 +8.8 +1.0

SET P/E (x) 18.1

SET P/BV (x) 1.8

SET Div. Yield (%) 3.2

Dow Jones 16,351.38 +293.0 +1.8

S&P 500 1,948.86 +35.0 +1.8

NASDAQ 4,749.98 +113.9 +2.5

UK 6,083.31 +24.8 +0.4

Germany 10,048.05 +32.5 +0.3

France 4,554.92 +13.8 +0.3

Japan 18,095.40 -70.3 -0.4

South Korea 1,915.22 +1.0 +0.1

Hong Kong 20,934.94 -250.5 -1.2

China 3,155.04 -11.6 -0.4

Taiwan 8,035.29 +17.7 +0.2

Singapore 2,878.13 -4.6 -0.2

Malaysia 1,590.19 -19.0 -1.2

Indonesia 4,401.29 -11.2 -0.3

Philippines 7,072.46 -14.4 -0.2

Trading Summary Buy Sell Net

Institution 4,203 5,062 -859

Proprietary 5,153 4,361 792

Foreign 9,405 10,408 -1,002

Individuals 22,397 21,328 1,069

Total Trading Value 41,158 Btmn

Most Active Value Value Close %Chg

JAS 3,182 5.65 -0.9

KTB 2,253 17.70 -

PTT 1,844 266.00 +0.8

AOT 1,503 277.00 +1.1

SCC 1,418 496.00 +3.8

Commodity Futures Close Chg %Chg

US Crude 46.25 +0.8 +1.8

Brent Crude 50.50 +0.9 +1.9

Gold 1,133.60 -6.2 -0.5

FX Rates Close Chg %Chg

USD/THB 35.75 +0.0 +0.0

EUR/USD 1.12 +0.0 +0.0

USD/JPY 120.32 +0.0 +0.0

USD/CNY 6.35 +0.0 +0.0

Source: Bisnews, Bloomberg

Technical picks (support & resistance)

TPIPL (S: 2.16, R: 2.50); CPALL (S: 49.00, R: 53.25); ROBINS (S: 37.75, R: 42.25); SET (S: 1,348, R: 1,400)

Thailand Research Department

Mr. Warut Siwasariyanon (No.17923) Tel: 02 680 5041

Mr. Krit Suwanpibul (No.17968) Tel: 02 680 5090

Mr. Narudon Rusme, CFA (No.29737) Tel: 02 680 5056

Mr. Napat Siworapongpun (No.49234) Tel: 02 680 5094

Daily Market Outlook 3 Sep 2015

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Somkid aims to control food prices, boost exports. Deputy PM Somkid

said authorities should inspect more frequently the market prices for

necessities, particularly food, to prevent excessive profits being made by

traders. He also directed the Commerce Ministry to set up a team to work

closely with the private sector, Foreign Ministry, and Tourism and Sports

Ministry to boost shipments to target countries such as Myanmar and China,

remarking “from now on, the Commerce Ministry will not be the only one

promoting exports”. (Bangkok Post)

TCG scheme expected to help boost SME lending. The higher cap

guarantee coverage for bad loans under the state-owned Thai Credit

Guarantee Corporation (TCG)’s new portfolio guarantee scheme (PGS)

would help restore banks’ confidence in lending to small business operators,

said the Thai Bankers’ Association. The scheme, running from 1 Sep to the

end of 2016, provides credit guarantee coverage of 70% of NPL. (Bangkok

Post)

More progress on bombing case. Theories behind the Turkish connection

to the Erawan shrine bombing were strengthened yesterday as authorities

issued a warrant for the arrest of a Turkish national for illegal possession of

war materials. (Bangkok Post)

Global issues Fed’s challenge: Federal Reserve Beige Book report said US labor markets

were tight enough to fuel small wage gains in some professions in recent

weeks, though some companies already felt a chill from an economic

slowdown in China, the Fed said. The combination of more demand for

workers and worries about Chinese economic growth underscores the

challenge faced by the Fed at a 16-17 Sep meeting where it may decide to

raise interest rates for the first time since 2006. (Reuters)

USA

Wall Street shares were up more than 1.8% on Wednesday supported by

US data and Chinese brokers’ measures to invigorate battered Chinese stock

markets. Technology stocks led a rebound from Tuesday's steep losses. The

market briefly hit a session high after the Federal Reserve Beige Book report

was released with upbeat tone on the US labor markets. (Reuters)

US private payrolls increased 190,000 last month, the ADP National

Employment Report on Wednesday showed. Although the figure was below

economists' expectations for a gain of 201,000 jobs, it was a step-up from the

177,000 positions created in July and in line with the trend for the first seven

months of this year. The ADP figures come ahead of the more comprehensive

non-farm payrolls report on Friday, which includes both public and private-

sector employment. (Reuters)

US nonfarm productivity increased at its strongest pace in 1-1/2 years

in 2Q15, keeping wage inflation subdued for now. The figure rose 3.3% YoY,

the quickest since 4Q13. But the trend in overall productivity remains weak.

Productivity rose 0.7% YoY instead of the 0.3% increase reported last month.

(Reuters)

Europe

European equities gained on Wednesday after a volatile start to the week,

drawing support from brokerage measures in China to invigorate the country's

battered markets and from hopes for policy easing by major central banks.

(Reuters)

Daily Market Outlook 3 Sep 2015

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ECB to cut inflation forecast, but wait on further easing. According to

Reuters the ECB is set to cut its inflation forecast today, due to falling oil

prices and China’s economic slowdown, but is also expected to leave interest

rates unchanged and argue the chance of missing its medium-term inflation

target has increased but the timing is not yet right to take further policy action.

Three-quarters of analysts polled by Reuters expect the ECB to eventually

extend or increase its quantitative easing program. (Reuters)

Asia China's stock, bond, foreign exchange and commodity futures markets

will be closed on 3 Sep and 4 Sep for a national holiday to commemorate

the 70th Anniversary of its WWII Victory. Markets will resume trade on 7 Sep.

(Reuters)

Chinese brokers pledge to support markets: Nine Chinese brokers

pledged to buy more than Rmb30bn of shares, according to the China

Securities Journal. That eased investor fears that Beijing may be intensifying

a trading crackdown. (Reuters)

The value of share repurchases by cash-rich Japanese firms leaped

more than fivefold in August from a year earlier in their drive to reward

shareholders. More buybacks are in the pipeline as companies take

advantage of a pullback in the market. According to data compiled by

JPMorgan, 75 companies in August announced share buybacks worth

¥338bn (US$2.82bn), compared with ¥53bn a year earlier. (Reuters)

Commodities

Gold dips as investors consolidate. Gold spot in the US fell US$6.05 to

US$1,133.65/ounce, after four consecutive days of upwards adjustment, due

to pressure from equities and greenback both strengthening. Nonetheless,

the overall movement was limited as investors wait on Friday’s nonfarm

payroll data for the US. (Reuters)

Oil gets bump from equities. NYMEX adjusted up 84 cents (+1.85%) to

close at US$46.25/barrel, while Brent shot up 94 cents (+1.9%) to

US$50.50/barrel, as sentiments recovered slightly due to recovering equities,

though fears of excess global supply kept a lid on gains. (Reuters)

Daily Market Outlook 3 Sep 2015

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Mon Tue Wed Thu Fri

1 2 3 4

XD

EGCO

TAE

XD

EASTW

QHOP

THREL

URBNPF

WORK

XD

CTARAF

GOLDPF

KPNPF

MJLF

PTTGC

SCB

SCB-P

7 8 9 10 11

XD

CK

HMPRO

QH

XD

BANPU

BAY

BBL

KBANK

KKP

MBAX

XD

SUSCO

ZMICO

14 15 16 17 18

21 22 23 24 25

28 29 30

Sep-15

Date Regions

31-Aug-15 EU

1-Sep-15 CNY

2-Sep-15 EU

3-Sep-15 EU

4-Sep-15 EU

4-Sep-15 US

4-Sep-15 US

Economic Indicators

Consumer Price Index (Aug)

ECB Interest Rate Decision

Gross Domestic Product (Q2)

Nonfarm Payrolls (Aug)

Unemployment Rate (Aug)

Caixin Manufacturing PMI

Producer Price Index (Aug)

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CG Rating

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.

Corporate Governance Report of Thai Listed Companies (CGR). CG Rating by the Thai Institute of Directors Association (IOD) in 2014.

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

BAFS EGCO IRPC KTB PTTEP SAT SIM TOPBCP GRAMMY IVL MINT PTTGC SC SPALIBTS HANA KBANK PSL SAMART SCB TISCOCPN INTUCH KKP PTT SAMTEL SE-ED TMB

AAV BIGC DELTA HMPRO NBC PJW SAMCO SVI TOGACAP BKI DRT ICC NCH PM SCC TCAP TRCADVANC BLA DTAC KCE NINE PPS SINGER TF TRUEANAN BMCL DTC KSL NKI PR SIS THAI TSTEAOT BROOK EASTW LANNA NMG PRANDA SITHAI THANI TSTHASIMAR CENTEL EE LH NSI PS SNC THCOM TTAASK CFRESH ERW LHBANK OCC PT SNP TIP TTWASP CIMBT GBX LOXLEY OFM QH SPI TIPCO TVOBANPU CK GC LPN PAP RATCH SSF TK UACBAY CNT GFPT MACO PE ROBINS SSI TKT VGIBBL CPF GUNKUL MC PG RS SSSC TNITY VNTBECL CSL HEMRAJ MCOT PHOL S&J STA TNL WACOAL

2S BEAUTY CSS IHL MFEC PPM SKR TBSP TSC ZMICOAF BEC DCC INET MJD PPP SMG TEAM TSCAH BFIT DEMCO IRC MODERN PREB SMK TFD TTCLAHC BH DNA IRCP MONO PRG SMPC TFI TUFAIT BJC EA ITD MOONG PRIN SMT THANA TVDAJ BJCHI ESSO KBS MPG PTG SOLAR THIP TWFPAKP BOL FE KGI MTI QLT SPC THREL UMIAKR BTNC FORTH KKC NC QTC SPCG TIC UPAMANAH BWG FPI KTC NTV RCL SPPT TICON UPFAMARIN CCET GENCO L&E NUSA SABINA SST TIW UPOICAMATA CGD GL LRH NWR SALEE STANLY TKS UTAP CGS GLOBAL LST NYT SCBLIF STEC TLUXE UVAPCO CHOW GLOW MAJOR OGC SCCC STPI TMI UWCAPCS CI GOLD MAKRO OISHI SCG SUC TMT VIHAQUA CKP HOTPOT MATCH PACE SEAFCO SWC TNDT WAVEARIP CM HTC MBK PATO SEAOIL SYMC TPC WHAAS CMR HTECH MBKET PB SFP SYNEX TPCORP WINASIA CSC HYDRO MEGA PDI SIAM SYNTEC TRT WINNERAYUD CSP IFS MFC PICO SIRI TASCO TRU YUASA

Source: Thai Institute of Directors (IOD)

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Contact

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 55/22 Moo 1, Samed Sub District, Muang District, Chonburi

20000

038-053-858 038-784-090

Chaseongsao 233-233/2 Moo2 1st Flr., Sukprayoon Road, Na Meung Sub-

District, Meung District, Chachoengsao 24000

038-981-587 038-981-591