Business News - Tuesday December 18, 2007
Honda cutting prices
AUTOMOBILES : Honda Automobile (Thailand) Co has confirmed price reductions for models compatible with E20 gasoline, ranging from 33,000 to 113,000 baht depending on model.
The price cuts reflect the lower excise tax rates for vehicles with E20-compatible engines of no more than 3,000cc. The new tax rates take effect next month.
Except for the Honda Jazz, the lower prices of other models will become effective for deliveries from next month onward. Customers who had made earlier bookings will be notified about the revised prices, and will receive corresponding reductions.
Cash deficit at B51.4bn
FISCAL POLICY : The government ran a cash deficit of 51.4 billion baht in November, the Finance Ministry said yesterday. The cash deficit for the first two months of fiscal 2008 was 110 billion baht, made up of 57.2 billion in the budget and 53.3 billion baht in extrabudgetary accounts.
SSI affirmed at BBB
STEEL : Tris Rating has affirmed the company and debenture rating of Sahaviriya Steel Industries Plc (SSI) at BBB with a negative outlook.
Tris said the ratings reflected SSI's local market position as a leading producer of flat steel products, strong relationships with customers of premium-grade products, a market protected by quotas and tariffs, and a variable cost structure that enhances production flexibility.
These strengths are tempered by high competition from both local and overseas manufacturers, the cyclical nature of the steel industry, short-term customer contracts (one to three months), and limited operating diversity.
SSI shares closed yesterday on the Stock Exchange of Thailand at 0.87 baht, up four satang, in trade worth 35 million baht.
28-day bills yield 2.96%
DEBT MARKET : The Bank of Thailand yesterday auctioned two billion baht worth of 28-day bills for a weighted average accepted yield of 2.964%. Accepted bid yields ranged from 2.96% to 2.968%, with the bid coverage ratio 5.85 times.
Also sold were three billion baht in 91-day bills for an average yield of 3.08447%. Accepted bid yields ranged from 3.08% to 3.09%, with bid coverage of 2.66 times. The central bank also sold two billion baht in 182-day bills for an average yield of 3.255%. Accepted bid yields ranged from 3.25% to 3.26%, with bid coverage of 3.09 times.