True Corp could trim its investments
Mobile and cable holdings may be cut
KOMSAN TORTERMVASANA
True Corp could divest part of its shareholdings in cable operator TrueVisions, as well as mobile phone provider True Move, according to True chief financial officer Noppadol Dej-udom.
But he ruled out any immediate deal, saying that the telecommunications conglomerate had until mid-2009 before it faced the need to raise funds.
Bitco, the holding company parent of True Move, raised three billion baht in capital last year through a rights offering to the CP Group, a major shareholder of True Corp. True Corp has the right to repurchase the 23% Bitco shareholding until July 2009 at the offering price of 0.5 baht per share plus carrying costs of 12%.
Mr Noppadol said True has not yet decided how it would finance the share buyback.
A debt issue was one possibility, although market volatility and rising yields make this an unattractive offer at the moment.
True itself could also issue new shares, also an unattractive prospect considering the dilution effect on existing shareholders.
''Another possibility would be to sell off some portion of TrueVisions or True Move to a new strategic partner,'' Mr Noppadol said. ''There is considerable investor interest in both companies.''
True currently holds 99% in TrueVisions and controls 76% in True Move, the country's third-largest mobile phone operator.
Mr Noppadol said any transaction this year was highly unlikely considering current market and economic trends. In any case, True would continue to hold a majority shareholding in both TrueVisions and True Move to support the company's overall ''convergence'' strategy blending content across different telecommunications channels.
''Forget about any deal over the next four months. It's impossible. The political situation and overall telecommunications market is simply not supportive of an asset sale,'' he said.
Athueck Asvanund, vice-chairman of True Corp, said there were no plans to discuss a possible share sale at the company's board meeting this month.
''It's not an issue at the moment, and True has no need right now to raise cash,'' he said.
True reported first half profits of 65.89 million baht compared with losses of 282 million last year. First-half revenues rose 2.5% year-on-year to 31 billion baht.
Shares of True on the Stock Exchange of Thailand closed yesterday at 2.32 baht, down 10 satang, in trade worth 32.35 million baht.
Showing posts with label Trade News. Show all posts
Showing posts with label Trade News. Show all posts
Thursday, August 28, 2008
SET paves way for Indochina dual-listings
STOCK MARKETS
SET paves way for Indochina dual-listings
NUNTAWUN POLKUAMDEE
The Stock Exchange of Thailand will establish an international board for potential dual-listings in Indochina by next year.
Chanitr Charnchainarong, president of the Market for Alternative Investment, said the SET hoped to attract Thai companies operating in Vietnam, Laos and Cambodia to list on the exchange under the dual-listing project.
The SET will reach out to securities brokers in the three countries to explore possible listings in their own countries first.
Afterwards, a second offering could be made for shares on the Thai exchange, Mr Chanitr said.
Laos expects to begin over-the-counter securities trading by the end of the year, with assistance from the SET. Computerised trading is expected to start in 2010, with Laos partnering with the Korea Stock Exchange.
Vietnam, meanwhile, is viewed as a strong candidate for dual listings. Sacombank Securities, Vietnam's third-largest broker and a strategic partner of the Tisco Group, has agreed to provide advisory services to Vietnamese and Thai companies operating in Vietnam and interested in the dual-listing project.
Mr Chanitr said the Vietnamese market now had a market capitalisation of $50 billion, with 80 securities firms serving the market.
More than 30 companies attended a presentation by the SET and Tisco last week in Saigon to hear briefings about the dual-listing programme.
The SET plans similar presentations in Cambodia next month. Cambodia hopes to open its stock market next year and has signed an agreement with the Korea Stock Exchange as a partner.
''Many Thai companies have invested in Vietnam , Laos and Cambodia , and we see all three markets as posting steady growth for the future,'' Mr Chanitr said.
''The SET should take advantage of the opportunity to expand our products to cover these companies.''
Mr Chanitr said the international trading board would be separate from the main trading board. Further study was underway about rules and regulations of each exchange, accounting standards and disclosure rules.
''The board will focus first on well-known firms. In Vietnam, for instance, there are several large Thai companies operating there, including the CP Group, Amata and Siam Cement,'' he said.
''There are three other companies from the food, beverage and property sectors, as well as six non-listed companies in Vietnam that have also expressed interest to list on the SET.''
SET paves way for Indochina dual-listings
NUNTAWUN POLKUAMDEE
The Stock Exchange of Thailand will establish an international board for potential dual-listings in Indochina by next year.
Chanitr Charnchainarong, president of the Market for Alternative Investment, said the SET hoped to attract Thai companies operating in Vietnam, Laos and Cambodia to list on the exchange under the dual-listing project.
The SET will reach out to securities brokers in the three countries to explore possible listings in their own countries first.
Afterwards, a second offering could be made for shares on the Thai exchange, Mr Chanitr said.
Laos expects to begin over-the-counter securities trading by the end of the year, with assistance from the SET. Computerised trading is expected to start in 2010, with Laos partnering with the Korea Stock Exchange.
Vietnam, meanwhile, is viewed as a strong candidate for dual listings. Sacombank Securities, Vietnam's third-largest broker and a strategic partner of the Tisco Group, has agreed to provide advisory services to Vietnamese and Thai companies operating in Vietnam and interested in the dual-listing project.
Mr Chanitr said the Vietnamese market now had a market capitalisation of $50 billion, with 80 securities firms serving the market.
More than 30 companies attended a presentation by the SET and Tisco last week in Saigon to hear briefings about the dual-listing programme.
The SET plans similar presentations in Cambodia next month. Cambodia hopes to open its stock market next year and has signed an agreement with the Korea Stock Exchange as a partner.
''Many Thai companies have invested in Vietnam , Laos and Cambodia , and we see all three markets as posting steady growth for the future,'' Mr Chanitr said.
''The SET should take advantage of the opportunity to expand our products to cover these companies.''
Mr Chanitr said the international trading board would be separate from the main trading board. Further study was underway about rules and regulations of each exchange, accounting standards and disclosure rules.
''The board will focus first on well-known firms. In Vietnam, for instance, there are several large Thai companies operating there, including the CP Group, Amata and Siam Cement,'' he said.
''There are three other companies from the food, beverage and property sectors, as well as six non-listed companies in Vietnam that have also expressed interest to list on the SET.''
Monday, August 25, 2008
TFEX futures expected to help smooth volatility
GOLD TRADING
TFEX futures expected to help smooth volatility
DARANA CHUDASRI
Starting next month, gold investors no longer will have to visit their local gold shop to punt on price trends. Instead, a telephone call to a broker will be sufficient for anyone seeking to take a position on future prices. Traders will no longer have to hold gold bars, but instead paper contracts once gold futures begin trading on the Thailand Futures Exchange.
Each contract will be equal to 10 baht-weight (152.4 grammes) of 96.5% gold, the standard used locally.
An investor purchasing a single contract will be obliged to post a margin fee, likely 10% of the contract value. Contracts will be quoted for even-numbered months in three periods. With trading due to start on Sept 22, the first contracts will be for settlement in October, December and February.
Prices will be quoted in one baht-weight of gold. Settlement will be financial only, with no physical delivery involved. As with other futures contracts, investors may have increase collateral pledged with brokers if prices change to cover settlement risk.
Thirachai Phuvanatnaranubala, the secretary-general of the Securities and Exchange Commission, said gold futures would help smooth out volatility in the market. ''Without a derivatives market, investors aren't allowed to show different viewpoints about where prices are moving. But with futures, you can buy or sell futures to represent your outlook,'' he said.
Gold and jewellery traders will also be able to use futures as a hedge to reduce risks in their operations by locking in future prices. The TFEX has invited gold shop owners and traders to become futures brokers.
''In the future, gold investors may trade futures contracts right from their local gold shop if the shop is a broker on the TFEX,'' Mr Thirachai said.
The TFEX is also expected to introduce a second gold futures contract, based on a one-kilogramme bar (65 baht-weight), and aimed directly at wholesale traders and jewellery businesses.
TFEX futures expected to help smooth volatility
DARANA CHUDASRI
Starting next month, gold investors no longer will have to visit their local gold shop to punt on price trends. Instead, a telephone call to a broker will be sufficient for anyone seeking to take a position on future prices. Traders will no longer have to hold gold bars, but instead paper contracts once gold futures begin trading on the Thailand Futures Exchange.
Each contract will be equal to 10 baht-weight (152.4 grammes) of 96.5% gold, the standard used locally.
An investor purchasing a single contract will be obliged to post a margin fee, likely 10% of the contract value. Contracts will be quoted for even-numbered months in three periods. With trading due to start on Sept 22, the first contracts will be for settlement in October, December and February.
Prices will be quoted in one baht-weight of gold. Settlement will be financial only, with no physical delivery involved. As with other futures contracts, investors may have increase collateral pledged with brokers if prices change to cover settlement risk.
Thirachai Phuvanatnaranubala, the secretary-general of the Securities and Exchange Commission, said gold futures would help smooth out volatility in the market. ''Without a derivatives market, investors aren't allowed to show different viewpoints about where prices are moving. But with futures, you can buy or sell futures to represent your outlook,'' he said.
Gold and jewellery traders will also be able to use futures as a hedge to reduce risks in their operations by locking in future prices. The TFEX has invited gold shop owners and traders to become futures brokers.
''In the future, gold investors may trade futures contracts right from their local gold shop if the shop is a broker on the TFEX,'' Mr Thirachai said.
The TFEX is also expected to introduce a second gold futures contract, based on a one-kilogramme bar (65 baht-weight), and aimed directly at wholesale traders and jewellery businesses.
Asean wary of EU approach to expanding free trade talks
TRADE
Asean wary of EU approach to expanding free trade talks
SOMPORN THAPANACHAI & PHUSADEE ARUNMAS
The European Union is considering ''deeper'' free trade area (FTA) discussions with Asean members that would cover political issues sensitive for some Asean governments.
The EU is negotiating for Asean countries to sign up to the EU's demands on labour rights, pro-environment legislation, competition policy, transparency in government procurement, and liberalisation in services, said an EU official.
''If the free trade agreement is just about tariff reduction, we would not be interested in [it],'' said Asa Larsson, trade adviser at the Delegation of the European Commission to Indonesia, Brunei and East Timor.
Despite pressure from the EU side, Asean members want labour rights and the environment _ which are covered under ''sustainable development'' _ to be excluded from the negotiations because each Asean country already has laws on those issues, said Chutima Bunyapraphasara, director-general of the Trade Negotiations Department.
Ms Chutima added that Thailand might agree to negotiate labour rights and the environment but would certainly not consent to these issues being included in the standard agreement.
''The mandate that Thailand has to negotiate these issues is only under the framework of co-operation,'' she said.
The EU aims to conclude deals with the most advanced Asean economies within two to three years before moving on to other negotiations. But this target is seen as ambitious from the Asean perspective, said Asean secretary-general Surin Pitsuwan, who added that the recently concluded Asean-India free trade negotiations took five years.
Friedrich Hamburger, the head of the European Commission delegation to Thailand, last Friday met Thai Commerce Minister Chaiya Sasomsap to discuss progress in Asean-EU FTA negotiations. Mr Hamburger said European Trade Commissioner Peter Mandelson would attend the next round of negotiations in Hanoi, scheduled in October.
Negotiations started in July last year, but five rounds of talks have yet to deliver any substantial agreements. The EU aims for pacts that abolish 90% of tariffs within seven years and is concerned about non-tariff barriers and regulatory issues.
Ms Larsson said the EU wants to include government procurement in the pact, which would open a market estimated at 1.6 trillion. The EU's view is that its government purchasing system is one of the world's most open markets while the Asean side is quite closed.
The EU started shifting from multilateral talks under the umbrella of the World Trade Organisation (WTO) toward regional negotiations after the failure of global trade talks in Hong Kong in 2005.
It wants ''new-generation, comprehensive'' free trade agreements showing the highest possible degree of trade liberalisation, including far-reaching liberalisation in services and investment.
Asean wary of EU approach to expanding free trade talks
SOMPORN THAPANACHAI & PHUSADEE ARUNMAS
The European Union is considering ''deeper'' free trade area (FTA) discussions with Asean members that would cover political issues sensitive for some Asean governments.
The EU is negotiating for Asean countries to sign up to the EU's demands on labour rights, pro-environment legislation, competition policy, transparency in government procurement, and liberalisation in services, said an EU official.
''If the free trade agreement is just about tariff reduction, we would not be interested in [it],'' said Asa Larsson, trade adviser at the Delegation of the European Commission to Indonesia, Brunei and East Timor.
Despite pressure from the EU side, Asean members want labour rights and the environment _ which are covered under ''sustainable development'' _ to be excluded from the negotiations because each Asean country already has laws on those issues, said Chutima Bunyapraphasara, director-general of the Trade Negotiations Department.
Ms Chutima added that Thailand might agree to negotiate labour rights and the environment but would certainly not consent to these issues being included in the standard agreement.
''The mandate that Thailand has to negotiate these issues is only under the framework of co-operation,'' she said.
The EU aims to conclude deals with the most advanced Asean economies within two to three years before moving on to other negotiations. But this target is seen as ambitious from the Asean perspective, said Asean secretary-general Surin Pitsuwan, who added that the recently concluded Asean-India free trade negotiations took five years.
Friedrich Hamburger, the head of the European Commission delegation to Thailand, last Friday met Thai Commerce Minister Chaiya Sasomsap to discuss progress in Asean-EU FTA negotiations. Mr Hamburger said European Trade Commissioner Peter Mandelson would attend the next round of negotiations in Hanoi, scheduled in October.
Negotiations started in July last year, but five rounds of talks have yet to deliver any substantial agreements. The EU aims for pacts that abolish 90% of tariffs within seven years and is concerned about non-tariff barriers and regulatory issues.
Ms Larsson said the EU wants to include government procurement in the pact, which would open a market estimated at 1.6 trillion. The EU's view is that its government purchasing system is one of the world's most open markets while the Asean side is quite closed.
The EU started shifting from multilateral talks under the umbrella of the World Trade Organisation (WTO) toward regional negotiations after the failure of global trade talks in Hong Kong in 2005.
It wants ''new-generation, comprehensive'' free trade agreements showing the highest possible degree of trade liberalisation, including far-reaching liberalisation in services and investment.
Saturday, August 23, 2008
New export markets set pace
TRADE
New export markets set pace
POST REPORTERS
New markets should keep exports above target
Thailand's exports are likely to exceed targets in 2008, thanks to a shift to new markets including Africa, Indochina and Eastern Europe, according to the Export-Import Bank of Thailand (Exim).
Exports have held up despite the slowdown in the United States. The dollar value of shipments totalled $87.2 billion in the first half of the year, a 23% year-on-year increase.
Exports to so-called new markets _ those excluding the US, the EU and Japan _ increased 31% year-on-year in the first half.
Shipments to Africa expanded by 60% in value, Indochina 57% and Eastern Europe 32%. Exports to new markets stood at 48% of the total in the first half of the year, compared with 37% in all of 2007.
''The exports could easily exceed the Commerce Ministry's target of 12.5% (growth) this year. And they could surpass 20% year-on-year growth, if the existing momentum maintains in the second half of the year,'' Exim said in a recent report.
Cement, printing products, paper and pulp, chemicals, jewellery, tapioca, electronic goods and rice were among the top export products in the first half of the year.
Good commodities prices have been another positive factor for exports this year, compared with last year when growth was seen more in volume than in prices. Rice prices this year have increased 50%, tapioca 60% and rubber 30% year-on-year in the first half.
The baht depreciation trend that began in the second quarter has also contributed to robust exports. The baht has weakened because of an eroding current account surplus due to high oil imports.
In addition, Thai businesses have benefited from higher operating costs in eastern China due to higher labour wages. The yuan's appreciation by 7% since the beginning of the year has also dampened investor interest in China.
''The factors in China will become opportunities for Thai labour-intensive businesses such as textiles, toys and sports apparel,'' the report said.
Locally based multinational corporations in high-technology industry accounted for 60% of total exports, the report noted.
New export markets set pace
POST REPORTERS
New markets should keep exports above target
Thailand's exports are likely to exceed targets in 2008, thanks to a shift to new markets including Africa, Indochina and Eastern Europe, according to the Export-Import Bank of Thailand (Exim).
Exports have held up despite the slowdown in the United States. The dollar value of shipments totalled $87.2 billion in the first half of the year, a 23% year-on-year increase.
Exports to so-called new markets _ those excluding the US, the EU and Japan _ increased 31% year-on-year in the first half.
Shipments to Africa expanded by 60% in value, Indochina 57% and Eastern Europe 32%. Exports to new markets stood at 48% of the total in the first half of the year, compared with 37% in all of 2007.
''The exports could easily exceed the Commerce Ministry's target of 12.5% (growth) this year. And they could surpass 20% year-on-year growth, if the existing momentum maintains in the second half of the year,'' Exim said in a recent report.
Cement, printing products, paper and pulp, chemicals, jewellery, tapioca, electronic goods and rice were among the top export products in the first half of the year.
Good commodities prices have been another positive factor for exports this year, compared with last year when growth was seen more in volume than in prices. Rice prices this year have increased 50%, tapioca 60% and rubber 30% year-on-year in the first half.
The baht depreciation trend that began in the second quarter has also contributed to robust exports. The baht has weakened because of an eroding current account surplus due to high oil imports.
In addition, Thai businesses have benefited from higher operating costs in eastern China due to higher labour wages. The yuan's appreciation by 7% since the beginning of the year has also dampened investor interest in China.
''The factors in China will become opportunities for Thai labour-intensive businesses such as textiles, toys and sports apparel,'' the report said.
Locally based multinational corporations in high-technology industry accounted for 60% of total exports, the report noted.
Narongchai : Put pacts on a faster track
TRADE
Narongchai : Put pacts on a faster track
PHUSADEE ARUNMAS
The government needs to address existing legal issues that impede international trade agreements, says Narongchai Akrasanee, a member of the cabinet's economic advisory team.
Article 190 of the Constitution, which requires all international agreements to be approved by parliament, is a key impediment to trade pacts, Dr Narongchai said at a public hearing held yesterday on the Asean-South Korea free trade agreement.
The free trade agreement between Thailand and South Korea recently won the cabinet approval, paving the way for the two countries to sign the pact at the Asean economic ministers' meeting that starts on Monday in Singapore.
However, while the bilateral pact is part of the Asean-South Korea free trade framework and has been signed by the two governments, it will take effect only after the Thai Parliament ratifies it.
Asean and Seoul began FTA talks in 2005. All Asean members except Thailand signed the agreement in May 2006 and it took effect two months later.
Thailand had declined to sign the Asean-Korea FTA over differences in Seoul's treatment of some agricultural products, particularly rice and livestock.
After almost a year of negotiations, Thailand concluded talks with Seoul last December after Seoul allowed an extension for tariff reductions on Thai goods from 2010-12 to 2016-17.
According to Dr Narongchai, Article 190 makes ministers reluctant to sign any international trade pacts for fear that they would be subject to possible lawsuits if political conditions changed.
More importantly, trade partners with whom Thailand has already completed talks could be not assured that what was already agreed would not be subject to changes later, he said.
''To address this issue, amendments of entire articles are not necessary,''he said. 'What the government could do is to draft organic laws for Article 190 to set the direction for Thailand's future international pacts.''
Dr Narongchai said the proposal would go before the cabinet next week.
Narongchai : Put pacts on a faster track
PHUSADEE ARUNMAS
The government needs to address existing legal issues that impede international trade agreements, says Narongchai Akrasanee, a member of the cabinet's economic advisory team.
Article 190 of the Constitution, which requires all international agreements to be approved by parliament, is a key impediment to trade pacts, Dr Narongchai said at a public hearing held yesterday on the Asean-South Korea free trade agreement.
The free trade agreement between Thailand and South Korea recently won the cabinet approval, paving the way for the two countries to sign the pact at the Asean economic ministers' meeting that starts on Monday in Singapore.
However, while the bilateral pact is part of the Asean-South Korea free trade framework and has been signed by the two governments, it will take effect only after the Thai Parliament ratifies it.
Asean and Seoul began FTA talks in 2005. All Asean members except Thailand signed the agreement in May 2006 and it took effect two months later.
Thailand had declined to sign the Asean-Korea FTA over differences in Seoul's treatment of some agricultural products, particularly rice and livestock.
After almost a year of negotiations, Thailand concluded talks with Seoul last December after Seoul allowed an extension for tariff reductions on Thai goods from 2010-12 to 2016-17.
According to Dr Narongchai, Article 190 makes ministers reluctant to sign any international trade pacts for fear that they would be subject to possible lawsuits if political conditions changed.
More importantly, trade partners with whom Thailand has already completed talks could be not assured that what was already agreed would not be subject to changes later, he said.
''To address this issue, amendments of entire articles are not necessary,''he said. 'What the government could do is to draft organic laws for Article 190 to set the direction for Thailand's future international pacts.''
Dr Narongchai said the proposal would go before the cabinet next week.
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