Market Roundup 3 October 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,558.05 points, decreased 31.46 points or 1.98% with a trading value of 82 billion baht. The analyst stated that the decline was mainly due to concerns on Credit Suisse after a sharp increase in Credit Default Swaps to nearly the 2009 level, raising concerns on the overall financial outlook. Meanwhile, the Fed’s meeting was a regular off-schedule meeting that the analyst gave less impact to the market downturn.

The analyst expected SET Index to move sideways-down due to no new positive factors and recommended investors to buy on weakness.


2) Credit Suisse plunges 12% as concerns of going bankrupt spike

The share price of Credit Suisse plunged as much as 10% after the opening bell of the European sessions on Monday after investors hedged on its five-year credit default swaps (CDS), seeing a potential bankruptcy for the Swiss bank.

The five-year credit default swaps (CDS) of Credit Suisse rose 6 basis points to close at 248.76bps on last Friday, the highest level in 13 years on reports that the bank is looking to raise capital which raised concerns on the financial health of the company.


3) Thailand welcomes 6 million tourists in the first 9 months

The international tourists visiting Thailand increased by 90% in September, bringing the total number of visitors for the first nine months of 2022 to over 6 million, according to officials, which was much higher than expected.

In the last four months of the year, the TAT predicts that Thailand will welcome an average of 1.5 million tourists every month.


4) Factory activity in Eurozone falls deeper in September on soaring energy costs

The downturn in manufacturing activity in the Eurozone fell deeper into contraction territory in September, according to a survey released on Monday, as demand tumbles further and price pressures intensify.

S&P Global’s final manufacturing Purchasing Managers’ Index (PMI) fell to a 27-month low of 48.4 in September, down from 49.6 in August, just below a preliminary reading of 48.5 and below the 50-point threshold separating growth from contraction.

This figure indicated a worsening of operating conditions for Eurozone goods producers.

High inflation and economic uncertainty reportedly dampened consumer demand for Eurozone goods in September. S&P Global noted that as business confidence plummeted to its lowest point since May 2020, companies began cutting back on spending in preparation for more challenging conditions.

The two largest economies in the Eurozone, France and Germany, saw the worst decline in manufacturing at the end of the third quarter, with PMIs falling to their lowest levels since the first wave of the Covid-19 pandemic in early 2020.