1) Thai stock market overview
Thailand’s SET Index closed at 1,533.37 points, decreased 3.45 points or 0.22% with a trading value of 64 billion baht. The analyst stated that the Thai stock market closed lower, following weakening baht and a selloff in the banking and energy sector. The lower-than-expected Chinese economic growth also pressured the Asian markets as well.
The analyst expected SET Index next week to move in sideways trends while waiting for the BOJ and ECB meeting and earnings of the banking sector.
2) Thai baht hits 16-year low against dollar
Thai baht fell to a new 16-year low against the dollar during afternoon trading on expectations that the Federal Reserve would take a more hawkish move at its upcoming July meeting and raise a key policy rate by as much as 100 basis points.
Baht briefly hit THB36.70 per U.S. dollar on Friday, its lowest level since 2006, weakening from Thursday’s closing rate of THB36.51.
With the Federal Reserve expected to hike interest rates by 0.75 – 1 basis points at its meeting later this month, the baht has continued to fall in value.
3) Betagro could launch IPO in September
Thailand’s leading integrated food company Betagro has started preliminary meetings with investors, aiming to raise US$500–$600 million (approx. THB18-22 billion) of funds through a domestic IPO in September-October as reported by Reuters, citing people with knowledge of the transaction.
According to the filing, the company plans to sell 500 million newly issued ordinary shares or 25% of its capital in which funding from the IPO will be used for business expansion and debt repayment.
Bualuang Securities and Kiatnakin Phatra are financial advisors for Betagro.
4) BofA cuts 2022 target for S&P 500 to 3,600
The Bank of America (BofA) largely slashed its 2022 target for the S&P 500 to 3,600 from 4,500, representing a drop of 5% from the current level.
The bank said that the index could drop to about 3,000 to 3,200 before the end of this year, citing its forecast for a recession this year and expectations for a Federal Reserve movement in 2023.
The new year-end target is “the lowest on the Street,” said that bank, expecting a mild U.S. recession starting in the second half of 2022.
BofA expected Fed fund rate target at 3.25%-3.5% by year-end and will maintain at that level in the first half of 2023 before starting cutting rates in the second half of 2023.