Shares dip as Apple price hikes hit tech sentiment

RECAP: Asian shares pulled ‌back on Friday after a stellar quarter, as hefty price hikes by Apple revealed the downside of booming chip demand and depressed tech shares, while the threat of Japanese intervention kept the yen from hitting 40-year lows.

The Thai index consolidated as sentiment was capped by rising uncertainties in the Strait of Hormuz and concerns over a potentially more hawkish Fed as US economic data remain strong.

The SET index moved in a range of 1,536.37 and 1,580.86 points this week, before closing on Friday at 1,542.34, down 1.9% from the previous week, with daily turnover averaging 73.9 billion baht.

Retail investors were net buyers of 10.99 billion baht, followed by institutional investors at 1.65 billion. Foreign investors were net sellers of 11.52 billion baht, followed by brokerage firms at 1.09 billion.

NEWSMAKERS: An Evergreen Marine cargo ship was hit by an unknown object ‌off Oman but then safely departed the Strait of Hormuz, the Taiwanese company said on Friday. But the incident forced the pause of an operation to evacuate thousands of seafarers on vessels that have been stranded in the Persian Gulf.

Oil tanker operators have nearly doubled the hire cost of vessels going through the Strait of Hormuz on rising demand as traffic through the waterway slowly picks up, according to ship brokers.

As part of the US-Iran peace agreement, Washington has granted a 60-day temporary waiver allowing Iran to sell oil in the global market without sanctions, valid until Aug 21.

US personal consumption expenditure (PCE), the Federal Reserve's favoured inflation gauge, topped 4% in May for the first time in three years, keeping an interest rate hike later this year on the table.

Traders are pricing in three rate hikes from the Fed this year, compared with bets of one before last week's meeting. The CME FedWatch Tool indicates a 68% chance of a move in September, up from 29% last week.

US GDP rose at an upwardly revised 2.1% annualised rate in the first quarter, up from an earlier estimate of 1.6%, the Commerce Department said.

Gold dropped below $4,000 an ounce on Wednesday for the first time since November on expectations of higher US interest rates. Bullion has entered bear market territory, falling more than 20% from its all-time high near $5,600 reached in late January.

Apple raised iPad and MacBook prices, blaming the soaring cost of chips amid the AI industry's data centre buildout. The increases, which brought the MacBook Neo's starting price to $699 from $599, does not affect Apple's main cash cow, the iPhone.

The US dollar reached a 13-month ‌high on Wednesday, as investors sought shelter from a tech stock selloff and prepared for more Fed rate increases.

The pound rose to a 10-month high against the euro on Wednesday as UK markets focused on who might become finance minister under Andy Burnham, the ‌likely successor to Keir Starmer as prime minister.

The People's Bank of China kept both its 1-year and 5-year loan prime rates unchanged at 3.0% and 3.5%, respectively, in line with market expectations.

The US manufacturing purchasing managers' index (PMI) improved more than expected to 55.7 in June, from 55.1 previously. Services PMI also beat expectations, rising to 51.3 from 50.7 in April.

The S&P Global Flash Eurozone Composite PMI eased to 49.5 in June from 48.5 in May, as a modest recovery in tourism demand failed to fully offset a sustained ‌fall in new business.

IBM says it has successfully developed the world's first sub-1 nanometre chip technology, the world's smallest chip, with mass production expected within five years.

Alibaba, the Chinese technology and e-commerce giant, has sued the US government after being placed on a list of businesses from China that Washington linked to China's military.

OpenAI is leaning toward holding off its initial public offering until next year, instead of the fourth quarter of this year, sources said, raising questions about the outlook for the ChatGPT maker.

SK Hynix, the world's second-largest memory chipmaker, plans to raise up to $29 billion in the US via an American Depositary Receipt Listing (ADR) listing to broaden its investor base and ramp up production capacity.

The Chinese AI firm DeepSeek plans to at least ‌double the number of staff in all departments as part of its AI push, according to a recruitment notice published on social media.

The index provider MSCI kept South Korea classified as an "emerging market" in its most recent review, while extending its assessment of Indonesia's status until November. The latter could be downgraded to "frontier" status if reforms do not pick up, MSCI said.

Asian bonds drew their strongest monthly foreign inflows in three months in May, as resilient regional economic activity boosted demand for debt securities. Foreigners bought a net $5.61 billion of local bonds in South Korea, Indonesia, Malaysia, Thailand and India, data from local regulators and markets showed.

The Bank of Thailand's Monetary Policy Committee on Wednesday voted unanimously on Wednesday to maintain the policy interest rate at 1%, as widely expected. It lifted its 2026 GDP growth forecast from 2.0% to 2.3% but cut the 2027 forecast to 1.8% from 2% due to a higher base effect.

The baht slipped to its weakest level this year, breaking through the 33-baht mark against the dollar on Tuesday as investors increasingly wager on higher US interest rates before year-end.

Thailand has set an ambitious goal of escaping the middle-income trap and attaining high-income status within the next 12 years, under targets announced by the Joint Public-Private Consultative Committee.

Residential construction permits nationwide fell 50.2% year-on-year to an estimated 27,870 units in the first quarter of 2026, reflecting a sharp slowdown in housing supply, according to the Real Estate Information Center (REIC).

The government has formally launched the Thailand Fast Pass initiative, with eight agencies signing an MoU to reduce business approval timelines by 20-50%, targeting 700 billion baht in investment inflows, or 3.5% to 4% of GDP.

Thailand's exports for 2026 could still grow 8% year-on-year, after rising 10.6% to $34.3 billion in May, the Trade Policy and Strategy Office said on Thursday. For the first five months, overseas shipments increased by 17% to $162 billion.

The Constitutional Court has confirmed it will issue its ‌ruling on the legality of the government's 400-billion-baht emergency borrowing ‌decree on July 9.

The Thai Chamber of Commerce and Thai Frozen Foods Association have begun buying shrimp directly from farmers to mitigate the effects of Malaysia's suspension of Thai shrimp imports over concerns about chemicals.

The cabinet has approved a common-ticket mass transit measure, with a planned start data of Jan 1, 2027, under which all rail lines will charge fares between 17 and 45 baht with a single entry fee.

The Ministry of Transport is advancing its light rail concession buyback plan, with the MRTA identified as the sole operator to manage the joint fare system. The 200 billion baht cost would be borne by a new Thailand Transport Fund, with completion by 2028.

Finance Minister Ekniti Nitithanprapas has ordered a review of the country's data centre strategy over concerns that water and electricity demand could impact the public, proposing that data centres co-invest in utilities and secure direct power purchase agreements.

Foreign tourist arrivals rose 4.4% to 508,133 for the week ending June 19, driven by Chinese and Taiwanese travellers ahead of the Dragon Boat Festival and expansion in long-haul markets, the Ministry of Tourism and Sports said.

Three dominant foreign e-commerce players in Thailand earned combined revenue of 172 billion baht in 2025, with all posting gains despite the challenging economy. Shopee remained the market leader, with TikTok Shop moving up to second in revenue, ahead of Lazada.

The Department of Business Development is investigating three food delivery apps to determine whether they comply with Thai laws. Feixiang, Gokoo and E-Gets reportedly receive orders exclusively from Chinese customers in Thailand.

SingTel has sold a 2.8% stake in SET-listed Gulf Development for about S$140 million, the group said on Tuesday. After the deal, SingTel will still hold a 4.95% stake in Gulf, valued at an estimated S$1.8 billion.

Thai Airways International has added the first of four new Boeing 787-9 aircraft to its fleet, aiming to enhance operational efficiency, strengthen long-haul services and accommodate growing demand.

COMING UP: On Monday, Spain releases inflation data. On Tuesday, Japan reports industrial output, China announces manufacturing and composite PMI, the UK reports GDP and Germany releases inflation and unemployment data. In the US, investors will watch job openings, Chicago PMI and consumer confidence. On Wednesday, Japan releases the Tankan survey of business expectations and the UK releases manufacturing PMI. On Thursday, the US releases non-farm payrolls, unemployment and average hourly earnings. On Friday, the UK and China report services PMI.

STOCKS TO WATCH: InnovestX Securities expects improved market sentiment next week as easing geopolitical tensions and lower oil prices reduce inflation concerns. However, expectations of 2–3 Fed rate hikes and quarter-end portfolio rebalancing could keep Thai equities volatile. Top picks: PR9, WHA, and IVL.

Asia Plus Securities recommends high-yield stocks (KTB, BBL, BLA), defensive plays (BH, BDMS, GULF, ADVANC, TRUE), and El Niño beneficiaries (KSL, KTIS, EASTW, TTW, IVL, PTTEP), as higher interest rate expectations and inflation risks support defensive positioning.

TECHNICAL VIEW: Krungsri Securities sees support at 1,530 points and resistance at 1,570. InnovestX Securities sees support at 1,510 and resistance at 1,575.