Market Roundup 3 April 2023

1) Thai stock market overview

Thailand’s SET Index closed at 1,600.37 points, decreased 8.80 points or 0.55% with a trading value of 46 billion baht. The analyst stated that the Thai stock market traded negatively compared to regional markets, pressured by the selloff in DELTA after being imposed with a cash balance criteria by the Stock Exchange of Thailand, which impacted the main index by 16 points.

The analyst expected the Thai stock market to bounce back tomorrow after the market priced in negative sentiment from DELTA, giving a support level at 1,590 points and a resistance level at 1,615 points.


2) Mitsubishi UFJ postpones AT1 bonds issuance

Mitsubishi UFJ Financial Group Inc announced that it will postpone the issuance of Additional Tier-1 (AT1) bonds, according to a statement from the company’s spokesperson on Monday.

The initial date for AT1 issuance is in late April, but the wipeout in Credit Suisse AT1 bonds roiled the market confidence in the biggest banking crisis in a decade. The new issuance date will be in mid-May.

The spokesperson said that the decision to postpone the issuance of its AT1 bonds had taken investor appetite and market conditions into account.


3) Eurozone manufacturing activity at 4-month low in March

Manufacturing costs in the eurozone dropped for the first time since the mid-2020 in March, a survey showed on Monday, but that activity at struggling factories throughout the region fell further as customers were suffering from rising living costs cut back.

The final S&P Global Purchasing Managers’ Index (PMI) for manufacturing dropped to 47.3 in March from 48.5 in February, slightly above the preliminary estimate of 47.1 but still below the 50 threshold separating growth from contraction for the ninth consecutive month.

Input prices declined for the first time since July 2020, thanks to lower energy costs and mending supply chains. The sub-index fell from 50.9 to 46.8.

That decline allowed firms to raise prices at the slowest pace in over two years, which is likely good news for European Central Bank policymakers who have so far been unable to bring inflation down anywhere near their 2% target.


4) China’s March manufacturing activity growth slows amid weaker demand

Chinese manufacturing activity dropped in March, according to a private poll released on Monday, as slowing production and weaker global demand added to concerns about a post-COVID recovery.

The manufacturing purchasing managers’ index (PMI) from Caixin/S&P Global dropped to 50.0 in March. It came after February’s 51.6 figure, which marked the first monthly growth in seven months.

The reading fell short of Reuters Poll’s 51.7 forecast and matched Friday’s official PMI’s weaker growth.

A housing slowdown, weakening global demand, and financial uncertainty have cast doubt on the resilience of China’s rebound, despite the first two months of the year saw modest recovery thanks to a robust rise in the services sector.

The Chinese government has set a goal for economic growth this year of roughly 5%, up from last year’s 3% expansion, which was one of the lowest showings in almost half a century.