Market Roundup 24 April 2023

1) Thai stock market overview

Thailand’s SET Index closed at 1,557.87 points, decreased 0.49 points or 0.03% with a trading value of 35 billion baht. The analyst stated that the Thai stock market moved narrowly without positive factors to drive the market after the financial results from the banking sector, while looking ahead to other sectors. Analyst expected SET Index to continue moving narrowly with a resistance level of 1,570 points and a resistance level at 1,550 points.


2) Credit Suisse sees $68 billion of asset outflows in 1Q23

Credit Suisse stated on Monday that it saw 61 billion Swiss francs ($68 billion) of outflow in assets in the first quarter of this year, putting pressure on UBS Group AG that recently acquired the bank in a shotgun wedding.

The bank also said that customer deposits declined by 67 billion francs. Meanwhile, a significant number of customers that reached maturing time deposits decided not to renew with the bank.

Most of the outflows in 1Q23 were from its wealth management division and occurred across all regions. The outflows are continuing, but have been moderated.

Some analysts noted that the outflows were not as bad as the market feared. However, others said that outflows of this magnitude were alarming.


3) Thai central bank sees “better” economic outlook in second half

The Bank of Thailand cited tourism and domestic consumption as key economic growth drivers for this year, predicting that the second half of 2023 will recover better than the first six months, but expressing concern over high household debts.

BOT Governor Sethaput Suthiwartnarueput stated on Monday that growth in gross domestic product for the country would come in at 2.9% in the first half of 2023 and 4.3% in the second half.

Tourism and domestic consumption were highlighted by the central bank as the primary growth catalysts for this year, while household debt levels were outlined as a major concern.

Meanwhile, it is anticipated that exports would contract by 7.1% in the first six months before regaining a little momentum in the second half, growing by 4.2%.


4) Thai banks report combined earnings of THB60.3 billion in 1Q23

Earnings from the first quarter indicated that the current upsurge in Thai banking was set to continue, with lenders reporting a net profit of THB60,281 million, an increase of 13.33% from the same period previous year. This rise in profits was driven mostly by lowered provisions for loan losses and higher interest rates.

In the first three months of the year, all of the major banks reported outstanding earnings, with Bangkok Bank (SET: BBL) achieving the most profit growth of 42% year-on-year thanks to the growth of loans, the interest rate hike cycle, and the reduction of expected credit losses (except for Siam Commercial Bank (SET: SCB) and Kasikorn Bank (SET: KBANK), which have extra provisioning set aside.)