Kaohoon Morning Brief – 27 March 2023

1) KSS expects window dressing to boost the market

Krungsri Securities (KSS) expected Thailand’s SET Index to move within the 1,580 – 1,600 range, pressured by the banking crisis as the latest development caused Credit Default Swap of Deutsche Bank to reach a four-year high. Meanwhile, the outflow from the Thai capital market reflected negativity to the market.

Nevertheless, the buying pressure from the window dressing could help boost the market this week.


2) First Citizens BancShares in advanced talks to acquire Silicon Valley Bank

First Citizens BancShares Inc is reportedly in advanced talks with the Federal Deposit Insurance Corp (FDIC) to acquire Silicon Valley Bank, according to the report by Reuters citing people familiar with the matter.

First Citizens has around $109 billion in assets and total deposits of $89.4 billion.

FDIC has been trying to sell SVB as a whole in the last few weeks, but failed to do so. The regulator decided to ask for separate offers for SVB Private and Silicon Valley Bank.

Valley National Bancorp is also bidding for SVB as well.


3) IMF says risks to financial stability has increased

International Monetary Fund chief Kristalina Georgieva said that risks to financial stability have increased as the impact from Covid-19 pandemic, the war in Ukraine and the monetary tightening continued to pressure global growth, making 2023 another challenging year for the world’s economy and growth slowed down to 2.9%.

The IMF chief added that the IMF was paying close attention to the most vulnerable countries, particularly low-income nations with high levels of debt.

Still, she predicted that an economic rebound in China, with projected GDP growth of 5.2% in 2023, could help buoy the world economy as China is  expected to account for around one third of global growth in 2023.