Market Roundup 12 September 2023

1) Thai stock market overview

Thailand’s SET Index closed at 1,545.50 points, increased 4.56 points or 0.30% with a trading value of 41 billion baht. The analyst stated that the Thai stock market was buoyed by the electronics sector, while there were no other positive factors to support the market. The analyst expected the SET Index to move in a sideways direction tomorrow, while recommending investors to monitor the U.S. CPI and the new policy to stimulate Thai economy from the government.


2) US is running low on oil reserves as production cuts by major exporters taking effect

Oil prices could maintain at this level throughout this year as Europe and the US are entering winter, raising concerns to the central bank of how to position its monetary policy for a softlanding as higher oil and gas could contribute to a spike in inflation data.

U.S. crude oil inventories have been edging lower since mid August, seeing continuous draw amid hopes for higher demand from Covid-19 recovery. The latest release on September 7, 2023, saw the inventory emptying by another 6.3 million barrels, which was lower than the previous month for a draw of 10.58 million barrels, but still way above the forecast of 2.06 million draw.

More indicators showed that Western countries are struggling to fill the tank before winter comes. Total US crude oil inventories, including the Strategic Petroleum Reserves (SPR), fell below 800 million barrels since late July and now has hit 767 million barrels for the first time since 1985 just a few years after the SPR was established.


3) ADVANC inks the 15-billion-baht deal with National Telecom to provide rental services on 700MHz

Advanced Info Service Public Company Limited (SET: ADVANC) has announced that Advanced Wireless Network Company Limited (AWN), a 99.99% subsidiary of the company, has entered into agreements with National Telecom Public Company Limited (NT) for the THB 14.8 billion worth of providing telecommunication equipment rental to NT to provide 5G mobile service on NT’s 700 MHz spectrum by constructing a total number of 13,500 base stations across the country within 2 years from the date of signing until March 31, 2036 (Expiration date of NT’s 700 MHz spectrum license).

During the construction of the network, ADVANC or AWN will provide national roaming services to NT without charge up to the usage quota specified in the contract. For the usage after the completion of network construction, the roaming rate will be subject to the Roaming Agreement.

The National roaming service agreement between AWN and NT stated that AWN will support the usage of NT’s users on 700 MHz Spectrum Agreement from the date of signing until March 31, 2036 (Expiration date of NT’s 700 MHz license). ADVANC will receive rental revenue and roaming fee from NT through AWN at the rate specified in the agreement.