Market Roundup 13 September 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,661.09 points, decreased 4.65 points or 0.28% with a trading value of 67.29 billion baht. The analyst stated that the Thai stock market moved within the range as investors awaited US inflation data for August, while the market anticipated that inflation had passed its peak.

The analyst stated that the Thai stock market would move in a sideways direction tomorrow if inflation data is in line with expectations, but could edge higher if lower than expected.


2) Thai cabinet approves diesel tax cut extension, 5-8% minimum wage hike

The Thai cabinet approved on Tuesday to extend a tax reduction on diesel by THB5 per liter for two more months and subsidize electricity bills for a specific group of people in order to lower the cost of living.

The extension of the excise tax cut on retail diesel prices will begin on September 21 and last through November 20. She stated that the decision will result in revenue losses of approximately THB20 billion for the government.

The government also agreed earlier today to raise the minimum wage by 5% to 8% beginning October 1, causing anxiety in key sectors such as agriculture, construction, and hotels, which are already battling with rising commodity, essential components, and other needs costs.


3) US inflation likely moderated in August, but not enough to change Fed hawkishness

U.S. inflation is expected to slow for the second straight month in August, and to see its first decline in two years.

Credit Suisse noted that if the inflation results are in line with its projection, it would be somewhat below current consensus expectations, but likely not enough to change Fed hawkishness in light of lately better-than-expected ISM and employment data.

Fed officials have indicated that it is willing to raise interest rates by either 50 basis points (bp) or 75 basis points (bps) unless inflation surprises significantly to the downside.


4) Goldman Sachs will cut 500 jobs as early as this month

Reuters reported that after pausing the annual practice for two years during the pandemic, Goldman Sachs Group Inc. will bring back its measure of job cutting as early as this month.

The investment bank for each year typically trims about 1% to 5% of its staff and this year’s cut would be at the lower-end of the range, which would be around 500 positions from its total employee of 47,500 reported at the end of June.