1) Thai stock market overview
Thailand’s SET Index closed at 1,552.73 points, increased 6.42 points or 0.42% with a trading value of 57 billion baht. The analyst stated that the Thai stock market traded lower in response to better earnings from the banking sector, while TRUE and DTAC faced a selloff due to the pressure on deal approval. The analyst expected the market to move in sideways trends prior to the Fed’s meeting.
2) Malaysia’s inflation beats expectations to rise by 3.4% in June
Malaysia’s headline inflation increased by 3.4 percent in June from a year ago, due to higher food prices, official data showed Friday.
The increase was greater than the 3.1 percent predicted by economists in a Reuters poll and the 2.8 percent seen in May.
The Department of Statistics Malaysia (DOSM) noted in a statement that this increase was higher than the country’s 1.9 percent average inflation rate from January 2011 to June 2022.
According to DOSM, the food index grew by 6.1 percent in June and remained the primary contributor to the increase in inflation.
3) IRPC and BLA at risk of being removed from SET50 Index for Thai Life Insurance
IRPC and BLA are at risk of being removed from SET50 Index at the closing on Monday due to the arrival of Thai Life Insurance Pcl in a fast-track measure.
Thai Life Insurance will kick off its first trading day with a market cap of THB183 billion and if the closing price is higher than 2% on the first trading day, the company will automatically enter the SET50 Index with a new market cap of THB186 billion, based on the fast-track measure. The 50th position in the SET50 at the closing next Monday will be removed.
4) Bank of Thailand ensures of gradual rate hike which will not disrupt economy
The Bank of Thailand stated that it will prevent surging inflation while easing the market concerns of aggressive rate hike by ensuring that any monetary policy adjustments in the future will be at a gradual pace and will not disrupt the economy.
The central bank said that economic recovery is clearer amid rising foreign tourist numbers at a faster pace than previously anticipated and should top this year’s expectations. Still the economic recovery is uneven as inflation risks remain high, according to the Bank of Thailand Governor Sethaput Suthiwartnarueput at a news conference on Friday.
Gross domestic production is seen higher than 3% in 2Q along with a recovered consumption.
Overall factors remain as forecast and the central bank did not see the need for a special rate meeting. The bank is scheduled to meet on August 10 to discuss a rate hike from its record low of 0.50%.