Market Roundup 17 March 2023

1) Thai stock market overview

Thailand’s SET Index closed at 1,563.67 points, increased 9.02 points or 0.58% with a trading value of 73 billion baht. The analyst stated that the Thai stock market recovered as buying pressure flows into big-cap stocks, especially DELTA, as the market eased concerns over the banking sector in the U.S.

The analyst expected the market to move in a sideways-up trend while recommending investors to monitor the Fed’s meeting next week.


2) Thai central bank ensures of strong external stability with low foreign debt

The Thai central bank reassured that Thailand’s external stability is sound with low foreign debt amid the recovery in economy at a steady pace on increased tourism and domestic spending.

According to Deputy Governor Mathee Supapongse, the Bank of Thailand’s gradual and measured policy normalisation remained an appropriate approach, but ready to adjust if needed. The central bank expected to return within the target range of 1-3% in the second half of this year.


3) Thailand moves forward to election after PM submits decree to dissolve parliament

Thailand’s Prime Minister Prayut Chan-o-cha has submitted the decree to dissolve parliament for royal endorsement, which would result in a general election in May.

The order, which would be published in the Royal Gazette on March 20 or no later than March 22, came just days before the end of a four-year term run by the former coup leader.

The dissolution of parliament is a tactic that will buy time for campaigns and recruit members for Prayut’s new political party that lists him as sole candidate.

According to the electoral laws, the general election must be held within 45-60 days after the dissolution.


4) Fitch says Asia bank exposure to U.S. bank crisis limited

Fitch Ratings said on Thursday that banks in Asia and the Pacific are resilient to risks seen in the failure of U.S. institutions, with the agency noting that regional banks it covers had little exposure to Silicon Valley Bank and Signature Bank.

Fitch wrote in a note that the direct exposures it was aware of among APAC Fitch-rated banks to SVB and Signature were not significant to credit profiles.

“Weaknesses that contributed to the failure of the two banks are among the factors already considered in our rating assessments for APAC banks, but these are often offset by structural factors,” Fitch said

Fitch’s analysis of APAC financial institutions follows U.S. Treasury Secretary Yellen’s overnight statement that not all uninsured deposits will be safeguarded in future bank collapses.

Fitch also stated that banks in the region would not suffer much of an impact even if the Federal Reserve made unexpected changes to its monetary policy, such as cutting its benchmark interest rate instead of an expected rate hike.