Market Roundup 25 January 2023

1) Thai stock market overview

Thailand’s SET Index closed at 1,682.11 points, decreased 0.83 points or 0.05% with a trading value of 57 billion baht. The analyst stated that the Thai stock market fluctuated in today’s session as a selloff in retail and hospital stocks pressured the market after prices in both sectors recently rose in response to positive factors.

The analyst noted that the index could not break the 1,700 resistance level, and the index is expected to move sideways within the range.


2) Thailand’s central bank raises policy rates by 25bps to 1.50%

The Monetary Policy Committee (MPC) on Wednesday stated that the Committee voted unanimously to raise the policy rate by 0.25 percentage point from 1.25 to 1.50 percent, effective immediately.

The Thai economy will continue to gain traction with continued recovery in tourism and private consumption thanks to the return of Chinese tourists. Meanwhile, merchandise exports will slow down this year but are expected to improve in 2024 in line with the global economic recovery. Headline inflation is expected to decline, whereas core inflation remains at a high level with increased risks from demand-side inflationary pressures due to the economic recovery. The Committee deems that a continuing gradual policy normalization is an appropriate course for monetary policy consistent with the growth and inflation outlook, and thus votes to raise the policy rate by 0.25 percentage point at this meeting.


3) Advertising spending on Twitter drops 71% in December

Advertising spending on Twitter dropped 71% in December, as the major advertiser cut their expenses on the social media platform after Elon Musk stepped in as CEO, according to Standard Media Index (SMI).

Twitter is facing the advertiser exodus since Elon Musk became the platform CEO in late October. It has launched a series of initiatives to win back advertisers, such as offering some free ads, lifting a ban on political advertising and allowing the company to control its own advertising position.

November was a traditional month of higher spending as brands promoted their product, but from SMI data, the spend on advertising dropped 55%. In November, Musk brought back the suspended account and announced a paid account verification which resulted in scammers impersonating corporations.

Around the same time, Elon Musk has blamed the activist group for pressuring the advertisers to pull ads on Twitter. Ads sales accounts for 90% of Twitter’s total income.

Twitter 4Q22 earnings fell nearly 35% YoY because of fewer advertising, reported by technology-focused publication the Information, referring to details shared by top Twitter ad executives at staff meetings last week.