Market Roundup 27 June 2023

1) Thai stock market roundup

Thailand’s SET Index closed at 1,478.10 points, decreased 7.22 points or 0.49% with a trading value of 34 billion baht. The analyst stated that the Thai stock market bounced back in the morning session, but settled lower as pressures continued to weigh on the market, including Fed’s rate hikes and domestic political issues. A selloff in big-cap stocks also dragged the market down today.


2) Thai central bank plans to further ease FX controls to boost capital outflows

The Bank of Thailand announced on Tuesday it plans to further relax foreign exchange controls in the second half of the year to boost capital outflows amid a volatile baht.

Assistant governor Alisara Mahasandana told reporters that local investors would be given broader access to purchase foreign assets.

As part of these measures, the central bank noted in a statement that Thai retail investors will be able to invest up to US$10 million in foreign securities, up from US$5 million previously.

It was also said that certain international investors would be permitted to hedge foreign exchange risk with Thai financial institutions.


3) Foreigners arrive in Thailand surpass 12.4 million, thanks to double digit growth in Chinese visitors

Thailand had over 12,400,000 international arrivals so far this year, with over 520,000 arriving during the third week of June alone, or an average of nearly 75,000 per day, according to official data released on Tuesday.

According to the Ministry of Tourism and Sports, Thailand received 523,794 international tourists between June 19 and June 25, with visitors coming predominantly from China, Malaysia, India, South Korea, and Vietnam.

The influx of international visitors has been consistent with projections over the past seven days. With a surge of 15.34%, Chinese travelers are once again outnumbering their Malaysian counterparts as the most popular visitors to Thailand, while the number of visitors from the Middle East rose by 78.14%.


4) IMF’s Gopinath  says major central banks should keep rates high for longer

The International Monetary Fund top officer said on Tuesday that major central banks should keep interest rates high for much longer than some investors expect in order to get inflation down to target.

“We also have to recognize that central banks have done quite a bit … But that said, we do think they should continue tightening and importantly they should stay at a high level for a while,” IMF Deputy Managing Director Gita Gopinath said at the European Central Bank Forum in Sintra, Portugal.

“It is taking too long for inflation to come back to target that means that central banks will have to remain committed to fighting Inflation even if that means risking weaker growth or much more cooling in the labor market,” Gopinath said.