Market Roundup 27 October 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,602.33 points, increased 5.87 points or 0.37% with a trading value of 64 billion baht. The analyst stated that the Thai stock market moved in sideways-up trends amid a selloff in DELTA that weighed the market down due to a disappointing 3Q earnings results. However, the decline in the dollar index was positive to the stock market, while the government’s stimulus plan also gave positive sentiment as well.

The analyst stated that the Thai stock market could continue to move in sideways-up trends as corporates gradually releasing their earnings and advised investors to monitor the announcement of US GDP later tonight.


2) European largest fund manager “Amundi SA” eyes KBANK’s asset management business

Europe’s largest fund manager Amundi SA, a private equity and investment advisory firm CVC Capital Partners and an American investment company are among shortlisted bidders for a stake in Kasikorn Asset Management Company Limited.

Bloomberg wrote that bidders are discussing with their respective financial advisers as the deal could involve a potential minority stake purchase and a partnership with Kasikorn Asset Management Co., Ltd.


3) S&P expects Asia-Pacific to lead global growth in 2023

S&P expects Asia-Pacific will lead global economic growth in 2023. Real growth in the Asia-Pacific area is forecast to reach about 3.5% in 2023, while major economies like Europe and the United States are predicted to enter recession.

S&P previously predicted 2% increase in global real GDP for 2023, but now expects only 1.4% growth. That’s a steep decline from 5.9% global growth in 2021 and slower than S&P’s forecast of 2.8% growth in 2022.

Despite a gloomy projection, S&P predicts that the global economy would avoid a downturn thanks to moderate growth in Asia-Pacific, the Middle East, and Africa.

The firm added that Southeast Asia and India would benefit from diversifying its trade “away from mainland China.”


4) Credit Suisse reports huge 3Q loss

Credit Suisse reported a net loss of CHF4.03 billion, a huge plunge compared to only CHF504.9 million of net loss estimated by analysts. The loss was well below a CHF434 million of profit the bank made in the same period of last year.

Credit Suisse stated that pre-tax loss of CHF342 million compared to pre-tax income of CHF1.0 billion in 3Q21. The bank noted that income tax expense underlined its quarterly performance, significantly impacted by the impairment of deferred tax assets of CHF3,655 million as a result of the comprehensive strategic review.

The bank plans to raise CHF4 billion by selling stocks and slashing thousands of jobs as well as spinning off its investment bank in an effort to recover from continuous losses.

The Swiss bank noted that it will create a capital release unit to wind down non-strategic, higher-risk businesses. It also announced the sale of a large part of its securitised products business as well.