Briefs

Recent upticks in inflation may encourage the Bank of Thailand to raise the policy interest rate at today’s meeting of its Monetary Policy Committee, DBS economist Gundy Cahyadi said yesterday.
However, he added that the central bank should keep the rate unchanged this time around and throughout the rest of the year, waiting for inflation to rise further to 2.5-3.5 per cent. which should occur around mid-2017. The economist noted that a rate cut would not help the economy either, given lacklustre economic growth momentum while households are deleveraging and private investment has yet to pick up.
 
STATE AUDITOR REFERS PTT
GAS PIPELINE CASE TO NACC
The Office of the Auditor-General (OAG) has decided to forward a case concerning PTT to the Office of National Anti-Corruption Commission (NACC) to consider the filing of a criminal suit against individuals regarding incomplete delivery of PTT’s natural gas pipelines.
The OAG indicated yesterday that PTT did not have assets separated in accordance with Supreme Administrative Court and Cabinet resolutions, resulting in financial damages to the state.
Chaiyasit Trachutham, chairman of the OAG’s executive committee, said the case would likely be filed against a former finance minister, an ex-president of the listed company, and executives of the Treasury Department – six people in total – on the grounds that their improper performance had damaged the state financially.
 
SET INDEX CORRECTIONS
EXPECTED THIS MONTH
Corrections in the Stock Exchange of Thailand Index are expected this month due to a mixture of negative developments, Tisco Securities said yesterday.
MSCI is adjusting its calculation formula, while listed companies’ first-quarter earnings tend to drop, year on year.
Foreign outflows are also expected during May and June, as in past years, Tisco said, adding that the SET Index could fall below 1,350 points by the end of this month.
The index yesterday lost 4.01 points to close at 1,390.13, on turnover of Bt44.37 billion.
Foreign investors were net-sellers of Thai shares to the tune of Bt1.3 billion.
The index reached a four-month high at 1,423.90 points on April 21, driven by rises in the prices of commodities, particularly for crude oil, which soared 37.5 per cent from late last year.

Steel traders assure govt of sufficient supply
  Steel traders insist that they have adequate supplies as the government starts its infrastructure projects, while the price is on the rise following lower production in China, higher costs and weakening baht, according to the Internal Trade Department.
Wiboonlasana Ruamraksa, director-general of the department, said yesterday that the steel price has increased this year by about 19 per cent from about Bt17-Bt18 per kilogram to Bt20-Bt21, as the cost of imported raw materials rose after some steel plants in China were shut down.
However, the domestic price will rely on the cost of imports and the exchange rate. The supply of steel is also adequate, as companies have said they are now producing at only about 50 per cent of full capacity.
If the government’s investment stirs up demand, producers can increase output at any time.
To ensure fairness to consumers, steel traders have to inform |the department one week in advance if they want to hike prices, she |added.

 Rise in back-to-school spending expected
 Back-to-school spending is expected to increase 2.3 per cent to Bt49.14 billion this year, following higher school fees and goods prices, according to the University of the Thai Chamber of Commerce.
The university’s survey with 1,210 parent samples from May 1-6 found spending for the new term will peak in seven years of the survey.
However, the expansion of spending is slower than the 5-10 per cent that was expected, reflecting that consumers are still careful with their money during the slow recovery of the economy, Thanavath Phonvichai, director of the university’s Economic and Business Forecasting Centre, said yesterday.
With low crop prices and high household debt, parents have turned to borrowing more. Some have also had to go to pawnshops as they lack liquidity.

 KCE Electronics posts 59% surge in Q1 profit
 KCE Electronics, a manufacturer and exporter of printed circuit boards, saw its first-quarter operating profit soar 59.2 per cent to Bt727.9 million.
KCE also enjoyed a constant growth of 22.4 per cent in sales and 46.9 per cent in net profit, compared to the first quarter of the prior year, executive chairman Bancha Ongkosit said yesterday.
Revenue was up 22 per cent to Bt3.52 billion.

 Target of cross-trader set at Bt1.7 trillion
 The Commerce Ministry expects cross border trade to reach Bt1.7 trillion at the end of this year, driven by trade promotion activities with neighbouring countries.
Commerce Minister Apiradi Tantrapron said the ministry would this year focus on trade promotion with neighbouring countries. In May, a cross-border trade fair will be hosted in Nakhon Phanom, a northeastern province that provides linkage with Laos, Vietnam and the Southern part of China.

 Sales growth continues at Mazda (Thailand)
 Mazda Sales (Thailand) Co is celebrating continued sales growth, with April sales of 3,400 units posing a 13-per-cent increase, president Hidesuke Takesue said yesterday.
Mazda is also revving up marketing with activities to be held at all showrooms nationwide to attract customers for the
Amazing Drive event, which will allow them to experience Mazda’s “Jinba-ittai” (rider and horse as one) philosophy first-hand.
Customers will also learn advanced driving skills as well as enjoying the fun-to-drive character of all |award-winning Mazda vehicles |being offered.
Premium souvenirs will be made available for everyone taking part. Customers who place an order |for any Mazda model will also get |an in-car video camera as a special gift.
The promotion lasts for just nine days, from May 14-22.