Market Roundup 11 October 2022

1) Thai stock market overview

The Thai stock market closed at 1,562.68 points, decreased 7.89 points or 0.50% with a trading value of 51 billion baht. The analyst stated that the Thai stock market moved narrowly in negative territory still being pressured from the rate hike trends and US inflation that led to strong dollars and weakening Thai baht. 

Due to these negativities, the short-term investment took an impact, coupled with the upcoming long holiday in Thailand at the same time as the U.S. announcing its inflation data for September, resulting in a slowdown in investment. 


2) Bank of England Expands Emergency Program to Stabilize Bond Market

The Bank of England announced on Tuesday an expansion of its emergency bond buying operation in an effort to restore order to the country’s chaotic bond market.

Starting Tuesday, the BoE said it would purchase up to 5 billion pounds ($5.51 billion) of index-linked gilts per day, in addition to the same-sized purchases of conventional long-dated gilts.

The move is the Bank’s second expansion of its extraordinary package in as many days, following an increase in the limit for its daily purchases on Monday, ahead of the purchase scheme’s scheduled end on Friday.

The Bank’s emergency intervention in the market for long-term British government bonds (also known as “gilts”) was launched on September 28 in response to a historic decline in value.


3) Russian President Putin to Attend APEC Summit in Thailand, Source Says

Thailand’s national security source confirmed on Tuesday that Russian President Vladimir Putin will attend the APEC summit in Bangkok this coming November.

The Foreign Ministry also said that Chinese President Xi Jinping had verbally confirmed his participation and had notified the Thai government to prepare for his presence. However, the Foreign Ministry noted that a final decision from the Chinese leader had not yet been made.

Meanwhile, US President Joe Biden has confirmed that he will not attend the November 18-19 summit, but will send representatives instead.


4) Taiwan Stocks Fall 4%, Dragged by Sharp Plunge in TSMC over New US Export Controls of High-End Tech

Taiwan’s benchmark index dropped more than 4% on Tuesday after the return from a holiday, dragged by the plummet of Taiwan Semiconductor Manufacturing Company as investors reacted to the new U.S. export controls on high-end tech.

On October 7, the U.S. Department of Commerce’s Bureau of Industry and Security implemented a series of targeted updates to its export controls as part of BIS’s ongoing efforts to protect U.S. national security and foreign policy interests.

The implementation is seen as a limitation of China’s ability to get its hands on high-end tech such as semiconductors that Washington believed will be used in military operations.

The share price of Taiwan Semiconductor Manufacturing Company (TSMC) fell 8.33% on Tuesday.