1) Thai stock market overview
Thailand’s SET Index closed at 1,593.65 points, increased 8.57 points or 0.54% with a trading value of 49 billion baht. The analyst stated that the Thai stock moved in positive direction as other regional stocks and edged closer to the resistance level of 1,600 points. The market continued to relax on the U.S. banking crisis, while the Fed’s decision was in line with expectations and bond yields also edged lower, resulting in more flows to risk assets.
2) Thailand’s economic growth expected at 3-4% in 2023
Thailand’s economy is expected to expand 3%-4% this year with support from the key tourist sector despite a decline in exports due to a slowdown in global demand, said the finance minister on Wednesday.
At a recent business seminar on Wednesday, Finance Minister Arkhom Termpittayapaisith pointed out the significance of coordination between monetary and fiscal policies for sustained economic growth.
As inflation falls, Arkhom believes there is no need for Thailand’s monetary policy to follow American monetary moves.
In addition, the finance minister reaffirmed that Thailand’s fiscal position is still steady, as the country’s public debt was not very high and its foreign debt was also low, despite the global banking sector’s woes.
A rate hike of a quarter point is widely anticipated from the Bank of Thailand at its upcoming meeting on March 29.
3) China likely to contribute 40% of global oil demand growth in 2023
Following the country’s reopening, China is anticipated to contribute for approximately 40% of the growth in worldwide oil demand this year, according to the natural resources consultancy on Thursday. However, the increase is unlikely to bring prices back to levels seen in 2022.
With the lifting of the stringent Covid-19 restriction, in a base-case scenario, the Chinese economy is expected to rise by 5.5% this year, according to a forecast by Wood Mackenzie. This would amount to one million barrels of oil per day (bpd) of the 2.6 million bpd increase in oil demand expected worldwide in 2023.
A high-growth scenario, if China’s growth expands by 7%, would add a further 400,000 bpd of Chinese demand, the report said.
According to Wood Mackenzie, the average price of Brent crude oil this year will remain lower than the US$99/bbl average anticipated for 2022, since markets have already responded to the disruption caused by Russia’s invasion on Ukraine.
