Market Roundup 30 September 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,589.51 points, decreased 2.86 points or 0.18% with a trading value of 62 billion baht. The analyst stated that the Thai stock market moved in both territories, following a rise in Dow Jones Futures, weakening dollar and the court decision on Thai’s PM eight-year tenure.

The analyst expected SET Index next week to rebound after pricing in most of the negative factors this week.


2) Eurozone inflation jumps to record 10% in September

The annual inflation in the Eurozone reached a new high of 10% in September, an increase of 0.9% from August and the highest level ever for the common European currency, according to Eurostat’s preliminary report published on Friday.

The rise was also higher than a consensus for a 9.7% rise.

Energy prices were the main culprit, rising 40.8% over a year ago. The inflation rate for non-energy industrial goods increased by 5.6% on a yearly basis, while the inflation rate for food, alcohol, and tobacco rose 11.8%. Inflation in the service sector surged 4.3%.

Comparing Eurozone member states, Estonia had the largest annual inflation rate increase in September, at 24.2%, while France had the lowest, at 6.0%.


3) Thai economic recovery continues despite slowing exports, says BOT

Despite headline inflation hitting a 14-year high in August, the Bank of Thailand’s Economic and Monetary Conditions report, which was released on Friday, said that the outlook for the Thai economy continued to improve, with help from private consumption and the tourism industry.

The central bank noted that private consumption indicators stayed relatively stable from the previous month, while private investment indicators rose in tandem with manufacturing output.

Meanwhile, foreign tourists continued to increase, as did public spending, which improved due to higher current and capital expenditure. However, exports of goods fell as a result of weakening demand from overseas and temporary supply-side factors.


4) Prayut Chan-o-cha returns to office after Constitutional Court votes in his favour

Thailand’s prime minister Prayut Chan-o-cha will continue his service as leader of the kingdom after the Constitutional Court issued a verdict on the eight-year tenure allegation.

On August 24, 2022, 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 that stated his term should start from the 2014 Thai coup d’état.

However, the Constitutional Court on September 30, 2022, after reviewing that the Thai PM’s term should start from the day that the Thai constitution officially becomes effective, which would be in 2017, citing the condition enacted in the constitution 2017 version.