Market Roundup 15 March 2023

1) Thai stock market overview

Thailand’s SET Index closed at 1,565.00 points, increased 41.11 points or 2.70% with a trading value of 69 billion baht. The analyst stated that the Thai stock market nearly wiped out yesterday’s loss. The analyst expected fund flows to slow down as the potential of Fed cutting rates are low due to inflation that remained at a higher level, resulting in the market leaning toward a pause.


2) Credit Suisse, and other European banks halted trading after shares drop over 20%

Shares of major European banks, such as Credit Suisse and Societe Generale, as well as the Italian banks Monte dei Paschi and UniCredit, were suspended from trade on Wednesday after a highly volatile trading session.

European markets saw a sharp loss in early trading hours, after posting the biggest single-day gain in nearly three months the day before, as banking equities remained in negative territory following the Silicon Valley Bank fallout.


3) Thai Industrial Sentiment at highest level in 4 years in February

Industrial sentiment in Thailand rose to its highest level in 4 years in February, as the manufacturing sector continued to see a steady recovery helped by a rebound in domestic consumption and tourism after China’s reopening, the Federation of Thai Industries (FTI) reported on Wednesday.

The industrial sentiment index rose slightly to 96.2 in February from 93.9 in the previous month, reaching a 47-month high, showing that optimism was widespread among various sectors of society.

According to the industrial group, respondents mentioned the gradual recovery of the manufacturing sector, domestic demand, and tourism, as well as the government’s new stimulus measures, as the chief factors for their optimistic outlook. The falling gas prices is also considered as a positive sign.

However, FTI chairman Kriengkrai Thiennukul said in a statement that industries were still concerned about weak demand in trading partner nations amid a sluggish economy and escalated inflation in major countries.


4) VC believes SEA is safe from SVB contagion as foreign investors look to diversify portfolio

The Singaporean independent venture capital firm Jungle Ventures expected the collapse of Silicon Valley Bank is unlikely to have an impact on the fundraising for tech startups in Southeast Asia.

David Gowdey, managing partner of the VC firm, told CNBC on Tuesday that the market should stay alert for the impact, but he believed that the contagion will not spread.

He applauded the US regulators for their fascinating job of stepping in and taking away a lot of risk from the financial sector while bringing back stability to the market.

Jungle Ventures is one of Southeast Asia’s largest independent venture capital firms, and Gowdey believed that its exposure to the collapse of the Silicon Valley Bank was not large and also noted that funds in Southeast Asia are well capitalized.

Meanwhile, Golden Gate Ventures, which also invests in Southeast Asian startups, told CNBC that this is an opportunity for the region as foreign investors are looking to diversify to different bank accounts in different geographies and different currencies.