Quick news
Ministry soothes consumers over prices
The Commerce Ministry is confident that prices of consumer products will be kept at the present level until the end of this year amid public concern over the rising cost of living. The prices of household liquefied petroleum gas, electricity, and expressway fares have gone up recently.
Commerce Minister Niwatthumrong Boonsongpaisan said the ministry would ask manufacturers to keep prices unchanged for the rest of the year, adding that inflation was expected to be low as consumers had started to save more and spend less.
The government will also organise more low-price fairs where products are sold at discounts.
Meanwhile, Deputy Commerce Minister Yanyong Phuangrach said inflation was expected to be less than 2.5 per cent this year.
TFEX lowers minimum volumes for block trade
The Thailand Futures Exchange, under the Stock Exchange of Thailand Group, has decreased the minimum size required for block trade transactions of high notional-valued contracts, effective from September 2.
TFEX managing director Kesara Manchusree said that from Monday onwards, minimum volume for block trade would be reduced to 25 contracts, down from 100, for block trades of 10-baht gold futures, 50-baht gold futures, and 20 stock futures with high notional value. Block trading of silver, oil and sector futures will now also be allowed from that date with a minimum volume of 25 contracts.
This reduction of minimum volume of block trade will help investors manage their portfolios more easily and effectively.
The notional value of a block-trade transaction of 25 contracts is about Bt5 million to Bt25 million.
For example, a block trade of 25 contracts of 50-baht gold futures will be about Bt25 million, instead of the current value at approximately Bt100 million for 100 contracts.
Block trading in TFEX is similar to big-lot trading on the SET. The current minimum volume and value of a big-lot trading on the Thai bourse is at least 1 million shares or at least Bt3 million.
For stock futures, the 20 underlying stocks with high notional value that have their block trading minimum volume reduced to 25 contracts per trade are Advanced Info Service; Airports of Thailand; Banpu; Bangkok Bank; Bangkok Dusit Medical Services; Bumrungrad Hospital; Bangkok Life Assurance; Total Access Communication; InTouch; Kasikornbank; Kiatnakin Bank; PTT; PTT Exploration and Production; PTT Global Chemical; Ratchaburi Electricity Generating Holding; Robinson Department Store; Siam Commercial Bank; Siam Cement; Thai Oil; and Thai Union Frozen Products.
Kawa Capital acquires local Conergy unit
Kawa Capital Management Inc, an independent asset-management firm based in Miami, Florida, with more than US$500 million (Bt16 billion) of assets under management, took over Thailand’s solar-energy solution provider Conergy.
According to Conergy, the acquisition by Kawa Capital Management provided the company with further funding support for its strong order book for the construction of large-scale solar power plants in Southeast Asia.
Alexander Lenz, president Asia & Middle East for Conergy, said: “We’re absolutely thrilled by the takeover and the business opportunities that we have with Kawa as our new owner.
The extended funding capabilities for large-scale projects will boost our downstream business and we expect further dynamic growth in the new setup.
The strong backing from an experienced investor means that we can continue delivering high-quality power plants that Thai and Asean investors and developers can rely on.
Conergy, a multinational based in Germany, has provided technology and engineering procurement and construction expertise to nearly a dozen different solar-energy development investments in Thailand – in addition to several additional developments in Asean countries. Though its foreign units have been doing well, the parent firm got into financial difficulties recently.
NBTC adjusts USO levy again
The National Broadcasting and Telecommunications Commission’s telecom committee has made a second cut to the Universal Service Obligation (USO) tax to help small and medium-sized telecom companies.
As part of the revision, the USO levy will be slapped on licence holders with annual revenue of Bt40 million and up, a change from the present Bt20-million minimum. They will also be able to deduct 60 per cent of their expenditure on inter-operator payments – the cost of leasing local and international networks – from the USO fee, up from the current 50 per cent.
However, the USO fee rate is maintained at 3.75 per cent of annual revenue of the affected licence holders.
The NBTC collects about Bt4 billion a year in USO fees. It uses the money to hire operators to develop telecom services in remote areas to create universal accessibility.
The telecom committee will propose the new USO fee for the NBTC board’s consideration next month before it is published in the Royal Gazette.
InTouch sets up 2 subsidiaries
InTouch, formerly known as Shin Corporation, has established two new wholly owned subsidiaries, InTouch Media Company and Touch TV Company, to be responsible for business related to broadcasting.
InTouch Media has registered and paid-up capital of Bt2 million, while Touch TV’s is Bt1.5 million.
CSS to begin trading on Tuesday
Communication & System Solution’s shares will start trading on the main board of the Stock Exchange of Thailand on Tuesday under the ticker symbol “CSS”, said Chanitr Charnchainarong, the SET’s chief issuer and listing officer.
CSS, a distributor of communications and systems engineering products, raised Bt600 million through 190 million shares in its initial public offering.
The company has paid-up registered capital of Bt350 million with a par value of Bt0.50 each.
