Market Roundup 16 March 2023

1) Thai stock market overview

Thailand’s SET Index closed at 1,554.65 points, decreased 10.35 points or 0.66% with a trading value of 69 billion baht. The analyst stated that the Thai stock market was fluctuating in the same movement as international markets. The index made a sharp plunge in the morning session, but managed to recover some losses in the afternoon after the share price of Credit Suisse opened strongly with a 30% gain in response to the injection from the Swiss central bank.

Meanwhile, the market expected the ECB’s meeting later tonight to lower its rate hike to 25bps from earlier speculation of 25bps.

The analyst noted that the market could bounce back tomorrow if there is no other negative news coming out.


2) Credit Suisse shares jump 35% after securing $54bn loan from Swiss central bank

Shares of Credit Suisse jumped by over 35% after the bank received a $54 billion loan from the Swiss National Bank to boost liquidity and investor confidence.

Credit Suisse announced early Thursday that it will borrow up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank.

The Swiss government had previously assured investors on Wednesday that Credit Suisse complied with “the capital and liquidity requirements imposed on systemically important banks” and it could access central bank liquidity if necessary.

Credit Suisse said that this step will “support Credit Suisse’s core businesses and clients as Credit Suisse takes the necessary steps to create a simpler and more focused bank built around client needs.”


3) Goldman Sachs lifts China’s growth forecast for 2023 to 6%

Goldman Sachs revised up its forecast for China’s economic growth this year to 6% from 5.5%, the investment bank said in a note on Wednesday, citing the country’s rapid reopening.

Goldman Sachs said in a research note that the revised forecast was driven by a strong rebound in sectors vulnerable to the COVID-19 pandemic and generally improved activity data in the first two months of this year.

Although China’s economy showed signs of improvement in January and February, a spokesman for the Chinese statistics bureau said at a briefing on Wednesday that it would take time to restore business and individual financial stability following the pandemic.

China has set a moderate annual growth target of roughly 5% for this year, after falling far short of its target for 2022.

The real estate market has made fresh gains in its recovery from a prolonged recession, and Goldman Sachs cites this as one reason for its updated outlook.