Market Roundup 27 July 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,576.41 points, increased 23.23 points or 1.50% with a trading value of 59 billion baht. The analyst stated that the Thai stock market edged higher following a positive session in the European market ahead of the Fed’s rate hike. The market widely expected the U.S. central bank to increase policy rate by 75 basis points, a better protection than a 100bps hike by some brokers after inflation in June beat forecasts. However, better economic data from the U.S. industry had help the market in easing fear of a surprise rate hike.


2) Thailand’s exports surge 11.9% in June, imports jump 24.5%

Thailand’s exports hit a three-month high of US$26,553 million in June, up 11.85 percent from the same period last year, official data showed on Wednesday.

The figure of exports last month was above the expected 10.5 percent rise.

Exports for the first six months of the year amounted to US$149,185 million, up 12.7 percent on a yearly basis, said Commerce minister Jurin Laksanawisit.

Imports, meanwhile, surged 24.48 percent from a year ago to US$28,082 million, bringing Thailand to record a trade deficit of US$1,529 million in June 2022 compared to a trade surplus of US$1,181 million in June 2021.


3) Wuhan enters 3-day lockdown after several infections found

The Authorities of Wuhan city, the origin of Covid-19 in China, have announced a shutdown of some businesses and public transport in a district of almost one million people after recording several new infections in the city.

The order came after authorities of Jiangxia district stated that they had detected two cases during regular testing drives on Tuesday. Two more cases were found from the screening of individuals close to earlier infectors.

Following its zero-Covid policy, Jiangxia district with over 900,000 residents will undergo a three-day lockdown measure from Wednesday. Public entertainment venues, agricultural product marketplaces and small clinics will be closed during this period. Public transportation such as buses and subways will be suspended as well.

The authorities added that it will also ban large group events and dining at restaurants.


4) Thailand is most at risk among Asian nations from a Fed rate hike

Thailand’s economy will be endangered if the US Federal Reserve raises interest rates by 75 basis points this week, according to Business Times on Wednesday, given that the country’s central bank has still held rates at a record low.

If the Federal Reserve raises interest rates by 75 basis points this week, it will put pressure on Asian central banks to do the same, or face greater outflows of funds and weaker currencies.

Thailand, where the central bank has maintained a record-low interest rate of 0.50 percent, is one of the markets with the highest level of risk, said the report on Wednesday. Meanwhile, South Korea and New Zealand are in a better position as they were among the first to moved early to front load hikes, but still not immune to problems.