Market Roundup 28 September 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,599.23 points, decreased 11.35 points or 0.70% with a trading value of 69 billion baht. The analyst stated that the Thai market and regional markets moved in negative direction in response to dollar appreciation and weakening Thai baht as well as funds outflow.

The analyst recommended investors to continue monitoring economic data of China, U.S. and Europe after the Thai central bank delivered a 25bps rate hike as expected.


2) Thai central bank raises key rate by 25bps to 1% and keeps 2022 growth forecast at 3.3%

Thailand’s central bank raised the monetary policy rate by 25 basis points, hiking its benchmark to 1% in a battle to tame inflation and protect the Thai baht from sliding against the US dollar. The second-straight 25bps raise was in line with expectations.

The Bank of Thailand kept its 2022 GDP growth forecast for Thailand at 3.3%, but lowered its forecast for 2023 to 3.8% from 4.2%.

Given the risk of recession in many major economies, Thailand’s economic recovery will feel some effects but have no direct effect on the country’s economic recovery as a whole, according to the bank’s statement.BOT also revised up inflation from 6.2% to 6.3% this year, and from 2.5% to 2.6% in 2023 amid rising prices.


3) Thailand’s Manufacturing Production Index expands 14.52% in August

Thailand’s Manufacturing Production Index (MPI) increased 14.52% year on year to 99.28 in August, as most Covid-19 restrictions were lifted, according to the Office of Industrial Economics (OIE) on Wednesday.

The average reading for the first eight months (Jan-Aug) was 99.81, up 2.72% from the same period last year, according to Siripen Kiatfuengfoo, OIE’s deputy director general.

Capacity Utilization (CapU) in August was 63.78%, up from 60.77% in July, and 63.43% through the first eight months of the year.


4) Four occupied Ukrainian areas side with Russian-orchestrated referendum for annexation

Four Russian occupied territories of Ukraine voted in a huge favor to join Russia in a Kremlin-orchestrated referendum.

According to the published results, 93% of the ballots cast in the Zaporizhzhia region supported annexation, as well as 87% in the Kherson region, 98% in the Luhansk region and 99% in Donetsk. These four areas accounted for about 15% of Ukraine’s territory.

The United States of America and the United Nations called the vote a ‘sham referendum’ after several western media reported that voters were held at gunpoint to agree on the annexation.