Market Roundup 28 April 2023

1) Thai stock market overview

Thailand’s SET Index closed at 1,529.12 points, decreased 2.11 points or 0.14% with a trading value of 45 billion baht. The analyst stated that the Thai stock market closed lower, pressured by the decline of big-cap stocks such as DELTA and PTTEP, while having low trading volume before entering a long holiday and investors were waiting for the Fed’s meeting. Still, there is some buying power in retail and other stocks.


2) Thailand’s March manufacturing continues to fall amid weakening global demand

Thailand’s manufacturing production index declined by 4.56% in March and by an average of 3.94% in the first quarter, the Ministry of Industry reported on Friday, citing waning global demand and inflationary pressures.

The March reading of 104.65 was 4.56% lower than the same period a year ago due to global demand weakening amid economic uncertainty, major trading partner nations still facing rising prices, and central banks continuing to hike rates.

But with the tourism industry bouncing back strongly, Thais are hopeful about the country’s economic future, said the Industry Minister on Friday.


3) Eurozone GDP up 0.1% in first quarter, misses expectations

The eurozone economy grew by 0.1% in the first quarter of the year, lower than market expectations after stagnation at the end of last year, preliminary data showed on Friday.

Economists polled by Reuters predicted 0.2% quarterly increase.

The annual growth rate of the economy was 1.3%, which was somewhat below the consensus estimate of 1.4%.

Germany, the largest member of the bloc, experienced zero growth after a drop in the fourth quarter of 2022. France, Italy, and Spain all had economic growth.

The Eurozone has been hit hard by rising food and energy prices as a result of Russia’s invasion of Ukraine, falling consumer confidence, and rising interest rates.


4) Japan’s central bank maintains ultra-low rates, expects 1.6% inflation in 2025

The Bank of Japan maintained its ultra-low interest rates at Friday’s first policy meeting under new Governor Kazuo Ueda, saying that more time is needed to reach its inflation target of 2% in a stable manner.

Economists’ predictions that the benchmark interest rate would remain unchanged at -0.1%, where it has been since the central bank dropped rates below zero in 2016.

For 10-year Japanese government bonds, the central bank left the tolerance range of 50 basis points over or below its target of 0% unchanged.

After a two-day meeting, the BOJ presented a report projecting a 1.6% increase in core consumer prices (excluding volatile fresh food items) for fiscal year 2025.

With this latest move, the BOJ will stick to its short-term interest rate target of -0.1% while directing yields on 10-year Japanese government bonds to hover near 0%.