Market Roundup 8 July 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,557.87 points, decreased 4.50 points or 0.29% with a trading value of 54 billion baht. The analyst stated that the Thai stock market was fluctuating and moving mostly in the negative territory in concerns of rising Covid-19 cases, resulting in a selloff to lower the risk.

The analyst cautioned investors by noting that a holiday in the middle of next week could have an impact on the trading volume, giving a movement range at 1,530-1,580 points.


2) SCB is exploring options to sell its asset management unit

SCB X Public Company Limited (SET: SCB) is considering options that include a sale of its asset management unit, SCB Asset Management Co., Ltd., (SCBAM), according to the report from Bloomberg citing people familiar with the matter.

The report stated that the Thai bank has been speaking with financial advisers to explore a potential transaction for its asset management unit, which has a potential value of around $1 billion to $1.5 billion (approx. 36-54 billion baht).

SCB Asset Management has approximately 1.6 trillion assets under management.


3) Former Japanese prime minister Shinzo Abe died from gunshot

Japan’s former prime minister Shinzo Abe died at age 67 after being shot while campaigning for his LDP’s member in the city of Nara, according to NHK reported on Friday.

Abe, aged 67, was Japan’s longest-serving prime minister from 2006 to 2007 and from 2012 to 2020. He was a Liberal-Democratic Party (LDP) member who was first elected to parliament in 1993.

He was shot on Friday while campaigning for the next parliamentary election on Sunday, with public broadcaster NHK saying a man with what seemed to be a handmade gun opened fire.


4) Thai central bank to let baht float in 2H moving forward

The Thai central bank stated on Friday that it will allow floating exchange rate on Thai baht in the second half of 2022, but will manage any excessive volatility in the currency. The move that could strengthen the weakening state of Thai baht. Meanwhile, the key policy rate will return to its normal state of rate hikes to slow down inflation.

Compared to regional currencies, the depreciation is mainly driven by a strong greenback, but weakness in the baht has been moderate, according to senior director at the Bank of Thailand (BOT) Daranee Saeju.