Market Roundup 30 June 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,568.33 points, decreased 17.85 points or 1.13% with a trading value of 71 billion baht. The analyst stated that the Thai stock market moved in the same direction as regional markets in concerns of recession and rate hikes after the US GDP final 1Q22 showed slower growth outlook, resulting in a selloff in major stocks to lower the risk in risk assets.

The analyst expected SET Index to remain fluctuating tomorrow, giving a support level at 1,550-1,560 points and a resistance level at 1,570-1,580 points.


2) BAY will acquire Capital Nomura Securities for THB5.5 billion

Bank of Ayudhya Public Company Limited (SET: BAY) has announced that its Board of Directors acknowledged that an agreement have been reached for the acquisition of business through the purchase of 99.1% of the share capital of Capital Nomura Securities Public Company Limited (CNS) from Nomura Asia Investment (Singapore) Pte Ltd. (NAIS) with an intention to offer to purchase up to 0.9% of the share capital of CNS from minority shareholders of CNS totaling up to 100% of the share capital of CNS with total consideration of up to approximately USD 155.3 million or approximately THB 5,501 million.


3) Thai economy shows steady improvement in May despite inflationary pressures, BOT says

Thailand’s economy continued to improve in May from the previous month, with both exports and imports seeing expansion, resulting in a trade surplus of US$1,985 million, after consumption, private investment, and foreign tourist figures recovered, according to the Bank of Thailand on Thursday.

In May, Thai exports expanded by 11.3%, while imports rose 23.3%, resulting in a trade surplus of US$1,985 million.

The central bank said that private consumption and private investment indices have increased in line with improving economic activity. External demand also performed well.

Demand from trading partners boosted practically all export categories, while the number of foreign visitors continued to surge as Thailand and other countries lifted travel restrictions.


4) Japan’s May factory output shows the biggest decline in two years

May saw the biggest monthly drop in Japanese factory output in two years as manufacturers suffered the shortages of semiconductor and other parts brought by China’s Covid-19 lockdowns. This was yet another worrisome sign for an economy that has been struggling to recover.

Japan’s factory output fell 7.2% in May from April after seasonal adjustments were made, according to government data released on Thursday (30 June). This decline was due to a steep reduction in the production of automobiles, as well as electrical and general-purpose machinery.

The drop was far more than the 0.3% decline projected by economists in a Reuters survey, and it was the largest monthly reduction since the 10.5% month-on-month drop in May 2020.