Overdue credit card payments jumped in Q4, NESDB says
The National Economic and Social Development Board said the rate of delinquent (three months overdue) credit-card payments jumped 31.3 per cent last quarter, while unemployment rose 0.48 per cent year on year. For the whole of 2013, the unemployment rate stood at 0.72 per cent.
NESDB secretary-general Arkhom Termpittayapaisith said that in the fourth quarter, non-performing loans for personal consumption rose 26.6 per cent, while three-month-overdue debts soared 45.8 per cent.
Although credit cards accounted for a small percentage of total credit, the rate of overdue repayments reflected a lower capability of households to service their debts. This year, such capabilities are expected to depend on the country’s economic situation and employment.
Last year, employment declined 0.05 per cent as the economy slowed. This year’s employment is forecast to improve on likely gains in the export sector.
PE trusts get nod
The board of the Securities and Exchange Commission has approved private-equity trusts as fund-raising channels for businesses and to encourage greater use of trusts for transactions in the capital market.
SEC secretary-general Vorapol Socatiyanurak said PE trusts would be alternative fund-raising channels for start-ups, small and medium-sized enterprises and technology-based and creative businesses, as well as for business restructuring.
“To make investment in PE trusts more attractive, the SEC will further coordinate with the Ministry of Finance on tax privileges for PE trust investors,” Vorapol said.
Subsidiary boosts PTT results
Moody’s Investors Service says PTT’s stable full-year results for 2013 were largely supported by its upstream oil and gas business through 65.29-per-cent-owned subsidiary PTT Exploration and Production.
The overall results have no impact on PTT’s “Baa1” issuer and bond ratings with “stable” outlook.
PTT’s consolidated sales revenue increased by 1.7 per cent to Bt2.84 trillion while earnings before interest, taxes, depreciation and amortisation grew marginally, by 0.5 per cent to Bt229 billion.
Compared with 2012, its natural-gas segment had the largest decline, with EBITDA contracting by Bt7.2 billion to Bt45.1 billion, followed by the oil business, where EBITDA fell by Bt2.6 billion to Bt13.4 billion.
Tisco China trigger fund
Tisco Asset Management suggests accumulation of Chinese stocks after recent corrections in the market’s main composite index.
Saharat Chudsuwan, head of marketing, wealth advisory, and mutual and private fund business at Tisco Asset Management, said the company was offering an open-ended targeted fund, Tisco China Trigger 8% #14, which will invest in Chinese stocks through the Hang Seng H-Share Index ETF. The fund will end when its return reaches 8 per cent or its net asset value totals or is more than Bt10.80 per unit. The subscription period began yesterday and runs to March 4.
Tisco Asset says recent drops in China’s stock index were attributable to investors’ concerns over the Purchasing Managers Index (PMI), which fell below 50 this month.
Deutsche Bank expects Chinese gross domestic product to grow by more than 8 per cent this year. China’s price-to-earnings ratio remains low at 6.49 times with over 70 per cent probability for return if P/E rises to its five-year average.
SCBC clients trade offshore
Siam Commercial Bank Securities (SCBC) has witnessed an increase in offshore trading by its customers to Bt10 million in value this month from Bt1 million as of December, after the impact of protracted political turbulence on the Stock Exchange of Thailand.
Viravate Vongkitbuncha, senior vice president for SCBC’s international securities department, said the firm’s offshore-trading portfolio was expected to reach between Bt100 million and Bt200 million by the end of this year.