Business Day Bonds, Currencies & Commodities Headlines

Precious stone, jewelry trade expected to be stable

BANGKOK, Feb 5 - The precious stone and ornament business this year is expected to stay still or expand slightly, similarly to its performance last year, according to the Kasikorn Research Centre.'KRC said the local and export-oriented precious stone and jewelry market is projected to grow at a rate close to that of last year.'As for the local market, the genuine precious stone and ornament industry growth is likely to depend mainly on gold prices and local consumer confidence.'For the...

Thailand will keep currency controls

Bangkok, Dec 27: Currency controls that rattled the stock market in Thailand could remain in place for up to six months, the central bank governor said Tuesday. 'Thai shares plunged nearly 15 percent on Dec. 19 after the central bank announced the regulations. 'Bank of Thailand Gov. Tarisa Watanagse said last week's measures, which restrict foreign capital inflows into the bond and commercial paper markets, must remain in place for at least three to six months to ensure they curb the...

Baht drops most in three years

Bangkok, Dec 21: Thailand's stock and currency markets have continued their volatile week after top politicians backed plans to limit the strength of the baht. 'On Thursday, Bangkok's SET stock index fell 2.4%. It had plunged 15% on Tuesday but rebounded 11% on Wednesday. 'The Thai baht fell 1.7% against the US dollar on Thursday, the biggest decline in three years. 'The volatility followed central bank plans to limit the amount of money that could be withdrawn by investors. 'Prime...

Exporters back Bank of Thailand move to impose reserve requirement

BANGKOK, Dec 21 - The Bank of Thailand's decision to impose a reserve requirement on short-term capital inflows deserves support, since it would have a positive effect in the long run while the stock market 'itself will be affected in the short run, according to top executives in the export sector.'Dej Pattanasetpong, President of the Federation of Thai Industries' Garment Club, said he supported the state measures to stem the baht speculation.'He said he saw it appropriate for the...

Central bank urged to act more strictly to oversee baht

BANGKOK, Nov 15 - Thailand's central bank --The Bank of Thailand --should take stricter measures to oversee the movement of the baht, after the local currency appreciated to 36.39 to the US dollar, the strongest in almost eight years, on Tuesday, the Kasikorn Research Centre said Wednesday.'The leading think tank reported although the central bank only recently came up with additional measures to curb speculation on the baht (early this month), Thailand's currency continued to...

Thai baht hits highest level in six years

BANGKOK - Thailand's currency, the baht, appreciated to touch 37.10 to the US dollar on Wednesday's trading, the strongest in six years, since there is a capital inflow into the Stock Exchange of Thailand and the greenback has weakened against other currencies, according to money dealers. ' 'The dealer at Bangkok Bank said the baht hovered around 37.10-37.15 to the dollar at the market close, up from 37.20-37.23 on the opening bell. He said the baht appreciation stemmed from the capital...

Thailand Foreign And Local Long-Term Currency Ratings Affirmed; Outlook Stable, Off Watch

SINGAPORE, Oct. 31, 2006 - Standard & Poor's Ratings Services today 'affirmed its 'BBB+/A-2' foreign currency and 'A/A-1' local currency 'sovereign credit ratings on the Kingdom of Thailand (Thailand) and 'removed them from CreditWatch. The outlook is stable. The ratings were 'originally placed on CreditWatch with negative implications on Sept. 19, '2006, following a military coup in the country. '"The affirmation of the credit ratings on Thailand reflects Standard & 'Poor's view that...

Stock, baht to move in narrow range this week

BANGKOK, Sept 30 - The Stock Exchange of Thailand (SET) index and the Thai baht are anticipated to move within a narrow range this week as investors are expected to stay on the sidelines, awaiting'further developments on the political stage.'The markets have not yet settled following the military Council's toppling of the government of ex-premier Thaksin Shinawatra two weeks ago, according to reports issued by Kasikorn Research Centre.'Investors in the stock market are closely...

Thai baht falls after military coup

SINGAPORE - The military coup in Thailand triggered a sell-off in the baht Wednesday as investors looked for safety in a knee-jerk reaction which dealers said would likely be limited unless there was an outbreak of violence. 'At 1:40 pm (0540 GMT), the baht was quoted at 37.68 to the dollar, down from 37.305 late Tuesday. It had hit a low of 37.805 in early trade. 'Dealers said the baht was not expected to fall below 38 to the dollar unless the military coup took a violent turn or signs...

Thai Baht, bonds slump after military coup

Thailand's currency and bonds slumped after the military seized control of Bangkok from Prime Minister Thaksin Shinawatra. Government offices, banks and the stock market have been shut down temporarily. 'The baht had the biggest loss since May 15 after army commander Gen. Sondhi Boonyaratkalin sent tanks and troops into the capital Bangkok. The military ringed Thaksin's offices, seized control of television stations and declared a provisional authority loyal to the king Bhumibol Adulyadej....

China won't be hasty in currency reform: central bank chief

SINGAPORE : China will not rush to liberalise its exchange rate regime and it is not certain that any relaxation will lead to an appreciation of the yuan anyway, the country's central bank chief has said. '"Actually we are not very sure whether liberalisation of the exchange rate would necessarily mean the revaluation of the renminbi (yuan)," People's Bank of China governor Zhou Xiaochuan told the Emerging Markets newspaper. 'The yuan, which now trades under a managed float system, faces...

Baht to have limited movement this week

The baht is expected to move in a narrow range of around 37.40-37.90 baht a US dollar this week compared with 37.67 baht a US dollar last Friday, according to a report issued by the Kasikorn Research Center (KResearch).'The report, released last Saturday, said that the Thai currency was anticipated to move in a tight range this week following a signal by the US Federal Reserve that further increase in key US interest rates is possible, while the US government prepares to issue several key...

Baht to strengthen on current account

(Bloomberg) JPMorgan Chase & Co, the third- biggest U.S. bank, reversed its forecast for a weaker Thai baht, calling for gains after the nation's current account returned to a surplus.'The trade deficit narrowed in July from a month earlier on higher demand for exports and declining oil imports, the commerce ministry said yesterday. Thailand on July 31 unexpectedly posted a current-account surplus of $65 million for June, compared with a $936 million deficit for May.'The baht will rise at a...

Bonds gain after BoT comment

Bonds rose, ending a two- day drop, after the central bank said economic growth slowed, boosting speculation policy makers will leave interest rates on hold for the rest of this year.'The yield on 10-year bonds dropped to near a six-week low as the central bank said the economy expanded between 4.7 and 4.8 percent in the three months ended June 30 from a year earlier, down from 6 percent the quarter before.'The Bank of Thailand, which next reviews rates on September 6, kept borrowing costs...

Baht set to stay strong

The Thai currency is projected to continue strengthening over the next few years, as the United States tries to keep its currency weak in order to solve its huge trade deficits.'KGI Securities director of analysis Adisak Kammool forecasts that the Thai baht will continue strengthening in the next two to three years and could climb to as high as Bt35-36 a US dollar.'Foreign funds have transferred their investment and reduced their holding of US dollars and moved their funds to invest in equity...

Stronger Euro ushers in danger zone

THE currency is getting stronger. Growth is rising. The European Central Bank has been raising interest rates again. Suddenly, things are looking better than they have for a long time in the euro area.'So the political tensions over the single currency are about to fade away, right?'Wrong. A stronger currency and economy mean the region is about to enter a danger period with exports threatened and rising interest rates.'It was the ECB keeping rates at record lows that allowed the weaker...

SCB to sell $300m of bonds

Siam Commercial Bank Pcl, Thailand's fourth-largest lender by assets, plans to sell $300 million of floating-rate notes, in part to pay maturing debt. 'The bank will sell three-year senior debt in an offering to overseas investors that may take place as early as April, soon after an outstanding $150 million of bonds comes due in March, President Jada Wattanasiritham said today. 'The issue will help repay the maturing debt and boost new lending to customers in other Asian countries, she told...

Bonds fall on stock concern

Thailand's 10-year local-currency bonds fell for a fourth day on concern a rebound in the stock market will lure investors away from government debt. The country's benchmark stock index had its biggest gain in eight days on optimism about corporate earnings. 'Overseas money managers bought a net 1.13 billion baht ($29 million) of Thai stocks yesterday, according to stock exchange figures, bringing their purchases for the year to 81 billion baht. 'Gains in stocks reduce the allure of the fixed...

Bonds fall on 10-year yield speculation

Thailand's 10-year local-currency bond fell for a third day on speculation gains in the past month that pushed down yields had made longer-term debt less attractive than shorter maturity notes. 'The gap between two- and 10-year Thai securities narrowed by half to 1.03 percentage points today, from 2.12 percentage points on Nov. 2, according to Bloomberg data. The smaller gap reduces the extra yield investors get to compensate for the risk of lending money for a longer period. 'We are...

MoF sells mass transit bonds

THE Ministry of Finance sold at auction Wednesday 1 billion baht-worth of six-year Bangkok Mass Transit Authority bonds at an accepted yield of 5.345 percent. 'The BMTA bonds are guaranteed by the government, the ministry's Public Debt Management Office said on its Web site. 'The BMTA bonds were sold to Siam Commercial Bank Plc. The bonds will be issued and payment settled on February 8. 'The accepted yield represented a tight premium of 9-10 basis points over the government bond yield...

Zinc prices to rise in 2006

Jan. 27 (Bloomberg) -- Zinc prices may rise 35 percent this year as demand outstrips production in China, the biggest user and producer of the metal, said Beijing Antaike Information Development Co., which advises the Chinese government.' Zinc for immediate delivery may average $1,860 a metric ton, up from a previous forecast of $1,406, Feng Juncong, an analyst at Antaike, said in a phone interview from Beijing Jan. 26. Zinc averaged $1,379.8 a ton in 2005.'Prices of zinc, used to coat steel...

India-Thailand bonds strong and growing

His Excellency, Mr Vivek Katju, Ambassdor of the Embassy of India was our morning talk guest. He explained his activities during his first year in office in Thailand and future programmes to be conducted.'MORNING TALK : Good morning Your Excellency. Last year, was the first year of your posting in Thailand. You had many highlights and there were some highly successful high-level visits.'HIS EXCELLENCY: We were privileged to have high level visitations between our two countries. HRH...

New saving bonds to be issued to public

The Bank of Thailand (BOT) will issue a series of new saving bonds, worth 14 billion baht totally, to the general public this year with different maturity periods'The new saving bonds, worth 2 billion baht each, can be subscribed through KASIKORN BANK (KBANK) branches across the country.'The first set of five-year bond will be issued during January 16-25, the second seven-year bond during February 15-24, the third five-year bond during March 15-24, the fourth seven-year bond during April...

Baht ends up on yen rebound

The Thai baht ended marginally higher against the US dollar in Asian spot trade yesterday on offshore dollar selling prompted by a mild recovery in the yen and capital inflows into domestic stocks, traders said. 'Dollar-buying by local corporations took the baht off its high, however. Government bonds closed slightly lower in thin trade, with investors mostly sidelined by a steady supply of various fixed-income instruments in primary market auctions this week. The dollar closed at THB41.370,...

Holcim to issue 8billion baht bonds

Holcim Capital (Thailand), a Thai unit of Swiss-based cement concern Holcim, has set the coupon for three tranches of bonds worth a combined THB8 billion to be issued December 6, an underwriting official said Wednesday. 'The company set the coupon for its three-year THB3 billion tranche at 6.12 percent, the five-year THB2.5-billion tranche at 6.48 percent, and the seven-year THB2.5-billion tranche at 6.69 percent, the official said. 'The yield for three-year government bonds was extrapolated...

Thailand braces for stiff rice competition

Thailand can expect to face fiercer competition in the world rice export market next year as demand declines and prices are expected to fall, according to a report released by Kasikorn Research Centre.'The KRC said the trend for 2006 is such that many rice producing countries are expected to get back on their feet and be able to produce more next year following the impact of natural disasters this year. As a result, the world market outlook in 2006 will be more of a buyers' market and Thailand...

Holcim to sell 8bn in bond issue

A Thai unit of Switzerland-based cement giant Holcim, Holcim Capital (Thailand) Ltd., will likely sell up to THB8 billion of senior secured bonds with three-year, five-year, and seven-year maturities by early next month, said a fund manager familiar with the deal yesterday. 'The roadshow for the bonds, which will be offered to institutional investors, will be held Wednesday. 'The bonds will be fully-guaranteed by Holcim. The proceeds will be used to repay debts of other Thai units like,...

Thai bonds close higher

Thai government bond yields closed a tad higher, under pressure from higher oil prices, while short-term central bank bond yields fell ahead of a drop in supply next week.' Bank of Thailand said it will cut the supply of its 364-day bonds next month to 7 billion baht a week from 12 billion baht a week in August. Investors' demand for short-term bonds remained high due to a need for places to park cash while interest rates rise.' The central bank sold 5 billion baht of 28-day bonds at...

Asset Plus re-offers bond funds

Asset Plus Fund Management has re-offered ASP-MMF2 and prepared to launch a new six-month government bond fund, ASP-IPF 2 'Asset Plus will launch ASP-IPF2, with an investment policy to invest only in high-quality government debt instruments with maturity close to fund's life to generate steady growth, minimise fluctuations and capital protection, the company said in a statement. 'The fund will be offered once from August 16 to 25, with ten baht a unit. 'For the investors who wish to invest...

Three views on yuan revaluation

The biggest business story last week was undoubtedly the revaluation of the Chinese currency which, although not totally a surprise, was certainly very sudden. Here are three opinions on the likely reasons for this event, its expected effects and the probable future repercussions.

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Yields on BoT bonds auctions edge higher

Yields on central bank bonds auctioned yesterday edged higher despite demand from mutual funds, while many investors are sitting tight ahead of a domestic rate meeting next week, dealers said. 'The average accepted yield for five billion baht ($128 million) of 28-day Bank of Thailand bonds rose to 1.71 percent from 1.58 percent in a similar auction a week ago. The bid/coverage ratio rose to 2.07 times the amount on offer from 1.71 times last week. 'Seven billion baht of 364-day central bank...

Thai bond yields increase

Yields at the Thai government bonds auction edged higher yesterday following an interest rate increase, but demand remained high at the last sale of longer-dated issues this year, dealers said. 'The average accepted yield for 1.5 billion baht ($38.4 million) of five-year government bonds rose to 3.99 percent from 3.92 percent in a similar auction last Wednesday ahead of the rate rise announcement. 'Bids for the issue fell to 2.43 times the amount on offer from 3.49 times. 'The average...

Exim Bank plans 12bn baht bonds in 2005

The state-owned Export-Import Bank of Thailand (Exim Bank) said yesterday it plans to sell at least 12 billion baht of bonds in 2005, including a dollar-denominated issue, to expand loans. 'About $150-$200 million of the bonds would be issued in Asian and European markets in the first quarter of 2005, bank president Sataporn Jinachitra said. 'The rest would be in baht and were expected to be issued in the second half of next year, he said.