Market Roundup 24 August 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,631.55 points, decreased 2.02 points or 0.12% with a trading value of 82 billion baht. The analyst stated that the Thai stock market moved narrowly as the market was neutral on the court ruling on suspending the Thai PM. The analyst recommended investors to monitor the Fed’s statement at Jackson Hole Symposium later this week, while the Thailand in Focus event had a slightly positive impact on driving the Thai market.


2) Japan to further relax border controls and scrap pre-entry test for vaccinated travelers

Japan will soon further relax border control restrictions, bringing its Covid control policy in line with that of other major economies,  Prime Minister Fumio Kishida announced Wednesday.

Starting September 7th, Japan will raise the daily quota of arrivals from the existing 20,000 and exempt those who have taken three doses of a COVID-19 vaccine from having to be tested before entering the country.

Border controls in Japan, which have been criticized both at home and abroad, have been loosened gradually under Kishida’s watch in an effort to bring them in line with those of other Group of Seven nations.

The government has also revised its travel warning for 55 countries and regions including Indonesia and the Philippines, to “stay fully alert,” and is no longer requesting Japanese citizens to avoid non-essential travel to those destinations.


3) Deputy PM Prawit to act as PM in Prayut’s absence during court ruling of eight-year tenure case

The Constitutional Court of Thailand unanimously agreed to accept a petition from the member of the House of Representatives to review the Prime Minister Prayut Chan-o-cha’s eight-year tenure.

At the same time, the court also voted 5 to 4 to pass an order to temporarily suspend the Thai PM from his position from today onward. The court decision is expected to be completed in September.

In the absence of Prayut in his position, Deputy Prime Minister Prawit Wongsuwon, leader of the ruling Palang Pracharath Party and the big brother of Prayut Chan-o-cha in the army will act as the Thai prime minister in his place.

Meanwhile, KGI Securities stated that the court’s suspension of the Thai Prime Minister Prayut Chan-o-cha is slightly negative to the market, but still not changing its constructive market view for 2H22.


4) JP Morgan expects Thai EPS growth to outperform MSCI AxJ

J.P. Morgan stated that positive earnings surprises and THB recovery had fueled a recent rally in Thai equities with SET/MSCI Thailand rising by 7% MoM in USD terms, outperforming MSCI Asia ex Japan which is flat MoM while MSCI Emerging Market is +1% MoM. The bulk of this performance was driven by IT, financials and energy sectors which delivered strong earnings.