Market Roundup 19 May 2023

1) Thai stock market overview

Thailand’s SET Index closed at 1,514.89 points, decreased 11.80 points or 0.77% with a trading value of 47 billion baht. The analyst stated that the Thai stock market edged lower as the market was still waiting for a clear picture of the new coalition government. Meanwhile, many analysts revised down estimated EPS for this year to THB100, resulting in an outflow.


2) BOJ governor reaffirms to maintain ultra-loose policy despite economic uncertainty

Bank of Japan Governor Kazuo Ueda said on Friday the BOJ will not budge from its stance of keeping ultra-loose monetary policy despite “extremely high” uncertainty over the economy’s future.

Official statistics released on Friday showed that Japan’s core inflation picked up speed again in April, rising 3.4% year over year. This throws doubt on the central bank’s prediction that inflation will decelerate back below its 2% target later this year as cost pressures abate.

Ueda argued that the recent spike in inflation beyond the BOJ’s 2% target was driven largely by external, cost-push forces rather than by robust domestic demand, and that a response to such price increases through tighter monetary policy would be detrimental to the economy.

Analysts predict inflation will remain above the Bank of Japan’s 2% target for a longer than expected due to the April rise.


3) U.K. plans $1.24 billion investment to boost domestic chip industry

The United Kingdom on Friday announced a billion dollar investment to boost its domestic chipmaking capabilities and prevent future disruption on the supply chain.

Up to £1 billion ($1.24 billion) will be provided to the semiconductor industry in the U.K. as part of a 20-year strategy on semiconductors, which would help the U.K. secure its chip supplies and protect against national security risks.

To support this strategy, the government will ramp up cooperation with international partners. The British recently made a deal with Japan to boost collaboration on defense and semiconductors.