Market Roundup 20 July 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,539.32 points, increased 5.89 points or 0.38% with a trading value of 57 billion baht. The analyst stated that the Thai stock market moved in the same direction as regional markets, following a positive session in the U.S. market after securities prices had dropped to an attractive level for speculation prior to the announcement of 2Q22 results. The analyst also recommended investors to monitor the decision of the European Central Bank on its policy rate


2) UK inflation hits new 40-year high of 9.4%

Inflation in the United Kingdom set a fresh 40-year high in June as food and energy costs continued to surge, according to the data released by the Office for National Statistics.

The annual rate of inflation for the consumer price index jumped to 9.4 percent in June from 9.1 percent in May, slightly above the prediction of economists polled by Reuters.

Motor fuels and food were the key drivers of inflation, with the former climbing 42.3% on a yearly basis, the greatest pace since before the historical series was formed in 1989.


3) EU seeks 15% reduction in energy use amid fears of gas shortage in winter

The European Union plans to propose a voluntary 15% cut in natural gas use by member countries beginning next month amid concerns about gas supply shortages this winter. The bloc is preparing for the possibility of a complete cutoff of gas supply by Moscow.

According to a draft commission assessment reviewed by Bloomberg News, 1.5% of the region’s GDP is at risk from a harsh winter.


4) Thailand industrial mood in June rises for first time in three months

The Federation of Thai Industries (FTI) reported that its industries sentiment index reached 86.3 in June, up from a reading of 84.6 in May.

The government’s decision to loosen more Covid-19 restrictions, resulting in a downgrade of the Covid warning level from level 3 to level 2, was a major factor in the uptick in industrial sentiment, which in turn led to the resumption of an economic activity, coupled with the opening of the country to foreign tourists. These factors contributed to the recovery of domestic demand.

However, there were negative impacts from Russia’s invasion of Ukraine, which resulted in soaring energy prices and a persistent supply shortage issue. Meanwhile, several countries are in danger of entering a recession due to inflationary pressures.


5) Thai Credit Retail Bank plans $400 million domestic IPO

Thai Credit Retail Bank is planning a domestic initial public offering of up to US$400 million, according to people close to the matter as reported by IFR News.

Thai Credit Retail Bank is a microfinance lender in Thailand, established in 1970 and granted licence in 2007. The bank currently has the biggest market share in the microfinance and nano finance market in Thailand.

Thai Life Insurance Public Company Limited (TLI) and Olympus Capital Asia are among the bank’s shareholders.

Bualuang Securities is working on the transaction.