Market Roundup 27 January 2023

1) Thai stock market overview

Thailand’s SET Index closed at 1,681.30 points, increased 9.96 points or 0.60% with a trading value of 57 billion baht. The analyst stated that the Thai stock market edged higher on Friday, moved largely by big-cap stocks such as the banking sector that saw prices plunging in the past few days and also oil-related stocks in response to rising oil prices. The analyst expected limited upside for the index next week, while recommending investors to monitor 4Q22 earnings season.


2) Thailand maintains 2023 GDP growth outlook at 3.8%, but officials warn of weaker exports

Thailand’s finance ministry reiterated its 3.8% growth forecast for 2023, backed by a recovery in tourism and domestic consumption, although an official warned that exports would decline this year.

The official gross domestic production figures for 2022 are scheduled to be released next month. In 2021, Thailand’s economy grew by 1.5%, among the lowest rates in the region.


3) Slow down in Visa’s growth points to tougher economy in 2023

Visa Inc’s revenue growth in the first quarter turned back to its pre-pandemic level, as surge in consumer’s spending as pent-up demand after lockdown and restrictions slowed down amid tough economic outlook.

However, Visa’s profit still exceeded the target of Wall Street that resulted in its shares rising 1.4% to $227.82 in after-hours trading on Thursday.

Cross-border volumes were the main key measure to track spending on cards when holders travel abroad. Visa’s total payment volumes increased 7%, but growth was far lower than a 40% growth in cross-border volumes in the first quarter of 2021 when the payment volume soared 20%.


4) Japan, Netherlands to join U.S. in China chip curbs

Japan and the Netherlands are reportedly soon to join the United States in imposing export bans on semiconductor manufacturing equipment to China, according to Bloomberg News on Friday.

According to the report, which cites unnamed “people familiar with the matter,” the trilateral discussions are expected to wrap up as soon as Friday U.S. time.

The Netherlands are considering tightening their restrictions on ASML Holding NV, which would effectively ban the company from selling equipment required for the production of certain types of advanced semiconductors. The report also stated that Nikon Corp. will face similar restrictions in Japan.

A deal between Dutch and US authorities could be reached before the end of the month, as representatives from both countries meet in Washington on Friday, Reuters reported on Friday.