Connect with us

Business

Finance: Market pullback nothing to worry about

Legacy Phuket Gazette

Published

 

on

Finance: Market pullback nothing to worry about | The Thaiger

PHUKET: As of late March, US stocks appear to be cooling after strong gains since the US elections. Over the next 1-3 months, I expect further market consolidation with a pullback by major market indices to the 50-day moving averages level being a real possibility.

The Dow Jones could fall below 20,000, while for the S&P 500 index, a 3-5 per cent pullback to a support level at the 2,300 mark would still indicate a healthy market. What I don’t want to see is the S&P falling further than that, as then we may start to see other (more bearish) technical formations start to form on the technical charts. Over on the NASDAQ, tech stocks have been strong performers lately; but I would still not be surprised to see a pullback to the 5,500 level.

The iShares MSCI Thailand Capped ETF has an increasingly healthy chart with multiple bottoming or bullish formations being layered on top of each other. Thailand and its tourism industry has struggled for the last few years with the military takeover and now the passing of the King; but the THD chart shows signs that the country may have finally turned a corner with the ETF ready to break out.

In fact, if we project upwards the difference between the market bottom (around US$55) and recent levels (US$77), the THD could break out to the US$90 level. Keep in mind that such a breakout would only take us back up to 2013 highs before much of the country’s troubles began.

Some US market indices are performing worse than the key market ones. The SPDR KBW Regional Banking ETF had a big run up after the elections and profit takers are now pulling their profits. However, not all regional banks are performing poorly – some individual names are holding on to their gains.

The iShares US Broker-Dealers ETF, SPDR S&P Metals and Mining ETF and the SPDR S&P Biotech ETF have also seen some additional pullback or profit taking.

It’s no fun to go through a pullback; but as long as we don’t see key indices cratering back down to pre-US election levels, there is no need to be overly worried. Investors also need to remember that while a sector index may see pullback or profit taking, not every stock in the index experiences a decline.

Pullbacks or corrections should always be looked at as opportunities to see which stocks in a portfolio are holding up, as weak stocks that do not hold up should be sold while any winning stocks should remain in a portfolio or be reviewed for profit-taking opportunities.

Finally, investors need to keep in mind that corrections will create headlines (especially if the Dow falls below 20,000), but investors need to ignore sensational headlines and focus on price action and long-term trends.

Don Freeman, BSME, is president of Freeman Capital Management, a Registered Investment Adviser with the US Securities Exchange Commission (SEC), based in Phuket. He has over 15 years experience working with expatriates, specializing in portfolio management, US tax preparation, financial planning and UK pension transfers. Don can be reached at 089-970 5795 or email: freeman capital@gmail.com.

— Don Freeman

Keep in contact with The Thaiger by following our Facebook page.



Do you need help with your business? Are you searching for a new job? Or an employer looking to hire? Try JobCute today.

Archiving articles from the Phuket Gazette circa 1998 - 2017. View the Phuket Gazette online archive and Digital Gazette PDF Prints.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Thai Airways under pressure to deliver workable business plan

May Taylor

Published

on

Thai Airways under pressure to deliver workable business plan | The Thaiger

Thai Airways is coming under more pressure, after being given 30 days to deliver its new rehabilitation and business plans.

Thaworn Senniam, the Deputy Transport Minister, gave the instruction yesterday while meeting with the executive of the national carrier for an update on its financial status.

He says the business plan must provide clear information on how the fortunes of the airline can be turned around, with a focus on making it profitable once more, while improving customer satisfaction.

The order comes after Thai Airways President, Sumeth Damrongchaitham, denied last week that the airline was experiencing a liquidity crunch, claiming it had sufficient cash flow “for present and future operations”.

Minister Thaworn has previously said he does not believe Thai Airways’ existing rehabilitation plan will help it succeed in a turnaround. He has also ordered a monthly progress report on the carrier’s plans to buy new aircraft.

In September, the directors of Thai Airways asked the Executive Board to review a plan to order 38 additional aircraft, worth a total of 156 billion baht.

According to their second-quarter 2019 filing to the Stock Exchange of Thailand, Thai Airways and its subsidiaries reported a net loss of 6.878 billion baht, compared to a loss of 3.086 billion baht over the same period last year.

SOURCE: The Nation

Keep in contact with The Thaiger by following our Facebook page.
Continue Reading

Business

World Economic Forum says lack of critical thinking in Thailand affecting competitiveness

May Taylor

Published

on

World Economic Forum says lack of critical thinking in Thailand affecting competitiveness | The Thaiger

PHOTO: AFP

Thailand’s competitiveness ranking has dropped two places in the Global Competitiveness Index just released by the World Economic Forum (WEC) in Switzerland. The country has dropped from 38 to 40 out of a total of 141 global economies ranked.

The WEC claims that a lack of critical thinking in teaching in Thailand, along with its failure to dominate in any markets, plus its unsafe drinking water, is affecting the country’s competitiveness.

The Nation reports that Singapore has come top in the ranking, overtaking the U.S. and Vietnam has shot up 10 places to 67.

The deputy secretary general to the PM for political affairs, Kobsak Pootrakool, responded to the findings, saying that as other countries improved their rankings, Thailand needed to work harder to ensure their progress didn’t cause it to slip backwards.

“It’s like a running competition – if our pace is slower, others will overtake us, so we have to run faster.”

The dean of the Chulalongkorn Business School, Assistant Professor Wilert Puriwat believes he knows what the country must do to improve competitiveness.

“The survey found that skills among new university graduates have declined, especially in the area of critical thinking. We’ve failed the exam and it can’t be fixed by simply retaking the test – we need to restart learning.”

Assistant Professor Wilert says Thailand needs to change the way students are taught, adding that the country’s score on critical thinking in the classroom was the world’s lowest at 37 out of 100 points. Finland comes first, with 89 points.

Wilert points out that Thai students routinely perform poorly on tests compared to foreign counterparts, which can be blamed on an old-school reliance on rote learning through memorisation.

The WEF is urging Thailand to adapt a model that encourages creative and critical individual thinking in the classroom instead. It also recommends improvements be made in staff training in Thailand, and more fostering of digital skills.

SOURCE: The Nation

Keep in contact with The Thaiger by following our Facebook page.
Continue Reading

Business

Samsung Electronics flags 56% fall in third quarter profits

The Thaiger

Published

on

Samsung Electronics flags 56% fall in third quarter profits | The Thaiger

“Samsung took advantage of the US trade ban against Chinese rival Huawei.”

PHOTO: CNBC

Samsung Electronics says it expects operating profits to drop more than 50% in Q3 amid a continued slump in the global chip market. Operating profits for July to September was expected to reach 7.7 trillion won (US$6.4 billion), down 56.2% from a year earlier – this from the world’s largest maker of smartphones and memory chips.

It marks the fourth consecutive quarter in which the South Korean tech company has recorded a drop in profits in the face of falling semiconductor prices and weakening demand for its mobile devices. Sales for the third quarter were expected to drop 5.3% from the same period last year.

The South Korean tech titan leads the global smartphone market with a 23% share of the sector, trailed by Chinese competitors Huawei and Oppo, with Apple in fourth place, according to sales tracker IHS Markit.

Samsung withholds net profit and sector-by-sector business performance until it releases its final earnings report, which is expected later this month.

The firm is the flagship subsidiary of the giant Samsung Group, by far the biggest of the family-controlled conglomerates that dominate business in the world’s 11th-largest economy, and it is crucial to South Korea’s economic health. Analysts voiced optimism for the coming months, noting that falling inventory levels for semiconductors – which account for more than half of Samsung’s profit – will help stabilise chip prices after double-digit drops this year.

Sujeong Lim, an analyst at Counterpoint Research, said, that in the mobile business, Samsung took advantage of the US trade ban against Chinese rival Huawei, “replacing a strong competitor in crisis” with its mid-to-low tier Galaxy A handsets.

“The new A series has turned out to be an effective weapon to take share from its Android competitors.”

Samsung appealed to high-end users with the launch of its first foldable smartphone last month after faulty screens forced an embarrassing delay in April. The firm also rolled out its flagship Note 10 devices which analysts say have sold far better than its previous models, giving Samsung a much-needed boost in its mobile sales.

The premium smartphone market has grown fiercely competitive and overall sales have cooled as a lack of major innovation has caused people to wait longer before upgrading to new models. Samsung has also been caught up in a trade war between Japan and South Korea stemming from World War II disputes.

The row saw Tokyo impose tough restrictions on exports crucial to South Korean tech giants in July, and Samsung vice chairman Lee Jae-yong – who called the situation a “crisis” – has visited Tokyo to secure materials. Adding to Samsung’s woes, Lee is currently facing retrial over his role in a massive corruption scandal that brought down former president Park Geun-hye.

He was initially jailed for five years in 2017 on multiple convictions including bribery, which was reduced to a suspended sentence on appeal, only for the Supreme Court in August to order a retrial.

SOURCE: Agence France-Presse

Keep in contact with The Thaiger by following our Facebook page.
Continue Reading

The Thaiger Newsletter

Keep up with all the day’s news. Subscribe here.

The latest news and information from Thailand.

* indicates required
ไทยแชมป์วอลเลย์บอลอาเซียนกรังด์ปรีซ์สนาม 2 รางวัลรายบุคคล | The Thaiger
วอลเลย์บอล1 week ago

ไทยแชมป์วอลเลย์บอลอาเซียนกรังด์ปรีซ์สนาม 2 รางวัลรายบุคคล

ตรวจหวย1ตุลาคม2562 ผลรางวัลที่ 1 เลขท้าย 2 ตัว 3 ตัว เลขหน้า 3 ตัว และรางวัลอื่น ๆ | The Thaiger
ตรวจหวย2 weeks ago

ตรวจหวย1ตุลาคม2562 ผลรางวัลที่ 1 เลขท้าย 2 ตัว 3 ตัว เลขหน้า 3 ตัว และรางวัลอื่น ๆ

ถ่ายทอดสดหวย 1 ตุลาคม 2562 ลุ้นรางวัลที่ 1 สลากกินแบ่งรัฐบาล | The Thaiger
ตรวจหวย2 weeks ago

ถ่ายทอดสดหวย 1 ตุลาคม 2562 ลุ้นรางวัลที่ 1 สลากกินแบ่งรัฐบาล

สีจิ้นผิงกล่าวสุนทรพจน์ ครบรอบ 70 ปีก่อตั้งสาธารณรัฐประชาชนจีน -ลิงก์ถ่ายทอดสด | The Thaiger
ต่างประเทศ2 weeks ago

สีจิ้นผิงกล่าวสุนทรพจน์ ครบรอบ 70 ปีก่อตั้งสาธารณรัฐประชาชนจีน -ลิงก์ถ่ายทอดสด

คลิปไฮไลท์วอลเลย์บอลเวิลด์คัพ 2019 นัดที่ 5 | The Thaiger
วอลเลย์บอล4 weeks ago

คลิปไฮไลท์วอลเลย์บอลเวิลด์คัพ 2019 นัดที่ 5

คลิปไฮไลท์ วอลเลย์บอลเวิลด์คัพ 2019 นัดที่ 1 | The Thaiger
วอลเลย์บอล1 month ago

คลิปไฮไลท์ วอลเลย์บอลเวิลด์คัพ 2019 นัดที่ 1

Paramount เตรียมรีเมค FACE/OFF หนังบู๊ระดับตำนาน | The Thaiger
หนัง1 month ago

Paramount เตรียมรีเมค FACE/OFF หนังบู๊ระดับตำนาน

ประยุทธ์ โต้ รัฐบาลไหนก็มีตำหนิทั้งนั้น “ถึงเวลาก็อ้างอย่างที่ผมอ้าง” | The Thaiger
ข่าวการเมือง1 month ago

ประยุทธ์ โต้ รัฐบาลไหนก็มีตำหนิทั้งนั้น “ถึงเวลาก็อ้างอย่างที่ผมอ้าง”

อารัมภบท รักฉุดใจนายฉุกเฉิน My ambulance ตอนแรก 6 กันยานี้ | The Thaiger
บันเทิง1 month ago

อารัมภบท รักฉุดใจนายฉุกเฉิน My ambulance ตอนแรก 6 กันยานี้

วอลเลย์บอลหญิงชิงแชมป์ยุโรป 2019 โฉมหน้า 4 ทีมตัดเชือกรอบรอง | The Thaiger
วอลเลย์บอล1 month ago

วอลเลย์บอลหญิงชิงแชมป์ยุโรป 2019 โฉมหน้า 4 ทีมตัดเชือกรอบรอง

บิ๊กไบก์หัวร้อน ตบหัวลุงพิการผัวะ ‘รถกูเป็นอะไร มีปัญญารับผิดชอบไหม’ | The Thaiger
ข่าวไทย1 month ago

บิ๊กไบก์หัวร้อน ตบหัวลุงพิการผัวะ ‘รถกูเป็นอะไร มีปัญญารับผิดชอบไหม’

“มิน พีชญา”ทุ่มสุดตัว นัวผู้ชายเกือบสิบ ป่วยโรคติดเซ็กซ์ ใน”สองนรี” | The Thaiger
บันเทิง1 month ago

“มิน พีชญา”ทุ่มสุดตัว นัวผู้ชายเกือบสิบ ป่วยโรคติดเซ็กซ์ ใน”สองนรี”

ไฮไลท์ผู้เล่นตัวท้อป 8 ทีมสุดท้าย วอลเลย์บอลชิงแชมป์ยุโรป 2019 | The Thaiger
วอลเลย์บอล1 month ago

ไฮไลท์ผู้เล่นตัวท้อป 8 ทีมสุดท้าย วอลเลย์บอลชิงแชมป์ยุโรป 2019

เคาะแล้ว สนามโคราช จัดแข่งวอลเลย์บอลคัดโอลิมปิก | The Thaiger
วอลเลย์บอล1 month ago

เคาะแล้ว สนามโคราช จัดแข่งวอลเลย์บอลคัดโอลิมปิก

คลิปวงจรปิดฉาว อส.ชลบุรี ทุบเด็กแว้นนอนเจ็บคาเตียงโรงพยาบาล | The Thaiger
ข่าวไทย2 months ago

คลิปวงจรปิดฉาว อส.ชลบุรี ทุบเด็กแว้นนอนเจ็บคาเตียงโรงพยาบาล

Trending