Market Roundup 7 June 2023

1) Thai stock market overview

Thailand’s SET Index closed at 1,533.21 points, increased 4.67 points or 0.31% with a trading value of 50 billion baht. The analyst stated that the Thai stock market moved within the range, boosted by buying power in energy and telecom, even after the report of slowing down in China’s exports and uncertainties in political issues in Thailand. The analyst expected the market to move in a sideways trend with a support level at 1,520 points and a resistance level at 1,540 points.


2) China’s exports fall 7.5% in May amid weak factory output and slow global demand

China’s exports fell 7.5% in May from last year, while imports contracted 4.5% as slower global demand continues to weigh on trading business of the world’s second largest economy.

Exports data released by customs early Wednesday was way below forecast by a Reuters poll for a contraction of only 0.4%. Meanwhile, imports shrank smaller-than-expected from a forecast of 8.0%.


3) UK to have highest inflation among major economies this year

The United Kingdom is expected to have the highest inflation rate among major economies this year, according to a new forecast released by the Organization for Economic Co-operation and Development on Wednesday.

According to fresh OECD economic projections, the headline inflation rate in Britain was expected to be 6.9% in 2023, higher than the 6.3% in Germany, the 6.1% in France, and the OECD average of 6.6%.


4) Thailand’s investor confidence plunges sharply in May

Thailand’s Investor Confidence Index was at 77.70 in May versus 110.09 in April, according to the data released by the Federation of Thai Capital Market Organizations (FETCO) on Wednesday.

Investor’s confidence in May entered a ‘sluggish’ range (40-79) for the first time in eight months. Confidence from proprietary investors increased 14.3% to 100.00, while confidence in individual investors plunged 24.0% to 73.61, local institutions dropped 18.5% to 91.67 and foreign investors fell 40.0% to 75.00 points.

According to FETCO, the banking sector has the highest interest among investors, while petrochemicals has the least interest. Forming a coalition is the main catalyst for the Thai capital market, while political issues after the election are the main risks.