Market Roundup 15 September 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,642.33 points, decreased 14.25 points or 0.86% with a trading value of 72 billion baht. The analyst stated that the Thai stock market retreated in response to the selloff in DELTA, power generators, tourism and big-cap stocks that received an impact from FTSE rebalance.

The analyst expected SET Index to move in a narrow range tomorrow, giving a support level at 1,635-1,638 points and a resistance level at 1,650 points.


2) MINT believes European hotel operations to outperform without impact from energy bills

Mr. Chaiyapat Paitoon, Chief Financial Officer (CFO) of Minor International Public Company Limited (SET: MINT), told “Kaohoon” in an interview on Thursday to reiterate his outlook on the company and eased investors concerns on rising energy bills in Europe that sent its share price to plummet in the morning session.

Mr. Chaiyapat said that MINT has an efficient cost control on energy bills as the company had negotiated with suppliers to lock in on a long-term purchasing price. Meanwhile, energy costs only account for 3-4% of its total expenses.

The CFO pointed out that the company had increased its room rate since last year, which could offset energy costs, while the refurbishment during the Covid-19 pandemic up until now allowed rooms to drive the rate even higher.

As hotel operations in Europe continued to recover as Covid subsided and authorities eased restrictions, MINT said that the company sees an accelerating number in business travel, events, seminars, and long-haul travellers, resulting in an increase of stays in MINT’s hotel chains.

The occupancy rate is currently above 70% as of July 2022 with an ADR at EUR140.


3) BBL amends JASIF’s payment terms for attractiveness in trade off for ADVANC taking over

Jasmine Broadband Internet Infrastructure Fund (SET: JASIF or the Fund) has announced that Bangkok Bank Public Company Limited (SET: BBL), as a lender in JASIF’s THB18,160 million Facilities Agreement, agreed to amend the repayment date and terms if JASIF agrees on several conditions, including entering the agreement with Advanced Info Service Public Company Limited (SET: ADVANC) to take over the Fund.

In addition, the amendment will result in JASIF paying the first five installment (2023-2027) at the amount of THB 1.85 billion, compared to THB 7.15 billion in the original terms, representing a decrease by 74%.

Moreover, the current interest rate that JASIF had to pay BBL is at 5.25%, which would burden the Fund with an interest at the amount of THB 953.40 million each year. Meanwhile, the new MLR terms that indicate a reduction by 0.5% would lower that burden to THB 862.60 million each year, representing a THB 90.80 million in reduction.