The month of September has proven to be another rubbish month for the markets. Its interesting to see how well the tech sector specifically ADVANC has performed this year despite the fact there is effectively zero growth left in their main business.

  1. well, i’d see advanc as being the most stable one of the group advanc/dtac/true (they basically have not generated any or many bad news in recent times, unlike the other two companies).

    • Correct. Stronger balance sheet. Better market share. True will raise capital continuously, DTAC is driven by Telenor’s desire to expand further in Myanmar and India hence the constant cash flow through divvy’s out of DTAC for the past decade.

  2. At least they have a domestic market.

    Thai exports declined 45% YOY in August (Reuters).

    An export economy.

    Many are proud of the strong Thai baht.

  3. I agree, of course–for now.

    Correct me if I’m wrong. If, in an export-driven economy, you open the paper today and see this,quote:

    The free-on-board prices of Thai 5% white rice are quoted at US$400 a tonne, while those of Vietnamese rice are quoted at $320 a tonne.

    Prices for paddy rice in Vietnam are also much lower at 5,600 baht a tonne, while Thai paddy rice prices are quoted at 7,500-7,800 baht a tonne.


    Alas, domestic demand will fall also, in due course, after the decline in export revenues have worked their way through the economy. At that point, domestic plays start to show the effects as well. Rather like Hemingway’s description of bankruptcy: “How did you go bankrupt?” “Gradually, at first. Then suddenly.”

    The present government are urging locals to take advantage by ordering relatively cheap imported capex equipment to enhance productivity in the future, at which time, the price efficiencies realized will be reflected in improved demand for export manufactures Unless, of course, the baht is at, say, its old level of 25.

    The government are setting an excellent example themselves. The recent order for 100+ American armored personnel carriers are a case in point.

    Coming soon? Capital controls.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.