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Corporate net profit takes a pounding in first quarter

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Corporate net profit takes a pounding in first quarter

By The Nation

 

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The first-quarter net profit of companies listed on the Stock Exchange of Thailand (SET) plummetted 60.5 per cent year on year as energy, public utility, petroleum and chemical businesses were affected by the economic slowdown, oil oversupply and oil price war.

 

 

The SET said that corporates reported net profit of Bt98.524 billion in the first quarter.

 

Manpong Senanarong, SET senior executive vice president and Head of Issuer & Listing Division, said that the economic stagnation had caused difficulties for corporates' sales and cost management.

 

“Net profit of corporates in the Market for Alternative Investment was Bt717 million, down 58.58 per cent year on year,” he said.

 

The SET Index on Friday (May 22) dropped by 16.72 points, or 1.27 per cent, to 1,303.97 with transactions totalling Bt64.469 billion.

 

“Domestic retail investors made net buys of Bt5.285 billion, while foreign investors, domestic institutional investors, and securities companies made a net sales of Bt1.999 billion, Bt2.991 billion, and Bt291.78 million, respectively,” he said.

 

Meanwhile, Kitichan Sirisukarcha, senior vice-president for research at CGS-CIMB Securities (Thailand), said that the index fell in line with global indices due to uncertainty following the renewal of the US-China trade war, Hong Kong tensions, and the Covid-19 outbreak.

 

“The US aimed to delist some Chinese companies on US exchanges and review the collection of tariff on Chinese goods,” he said.

“As of May 21, the number of Covid-19 cases worldwide rose to over 5,000,000 people, causing several countries to be careful on easing lockdown measures.”

 

He said that the SET Index valuation was tight after rising over 1,300 points, adding that the index’s price-to-earnings ratio was 20 times, while the ratio next year would be 16.5 times.

 

“We expect the index’s support line at between 1,270 and 1,280 points, while the resistance line is between 1,320 and 1,333 points due to lack of positive factors and uncertainty following the US-China trade war,” he added.

 

Source: https://www.nationthailand.com/business/30388373

 

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-- © Copyright The Nation Thailand 2020-05-24
 

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16 hours ago, rooster59 said:

“We expect the index’s support line at between 1,270 and 1,280 points, while the resistance line is between 1,320 and 1,333 points due to lack of positive factors and uncertainty following the US-China trade war,” he added.

What utter tripe. The support is at 1,000, and we will see that tested very soon.

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