Market Roundup 30 June 2023

1) Thai stock market overview

Thailand’s SET Index closed at  1,503.10 points, increased 23.53 points or 1.59% with a trading value of 56 billion baht. The analyst stated that the surge today was mainly due to easing political concerns in Thailand between the two big parties. An increase in GULF and CPALL also pushed the market higher.

The analyst recommended investors to monitor the political event next week for the opening day in the parliament to select the chairman. If the process goes well, the stock market would react positively.


2) Thai manufacturing output drops 3.14% in May as exports remain weak

Thailand’s Manufacturing Production Index (MPI) contracted by 3.14% year-on-year in May, data from the industry ministry showed on Friday, suggesting that the country’s export sector remained weak.

The reading in May came in at 94.8, dropping by 3.14% YoY, but expanding 14.23% month-on-month.

In contrast, a Reuters survey predicted a drop of 4.5% in May. In April, annual output decreased by a revised 8.71%.

The Office of Industrial Economics reported that the MPI fell 4.49% from January to May compared to the same period a year earlier.

It was predicted last month that industrial production would increase by 0%-1% in 2023.


3) Thailand’s central bank says economy firmly on recovery path due to rising spending and tourism

Thailand’s central bank said on Friday the country’s economy continued on the path to recovery in May due to increased public and private sector spending and improved investment, as well as tourism gathering pace, even as exports remained weak.

According to a statement released by the Bank of Thailand (BOT), economic activity and tourist arrivals are both on the steady rise. The central bank projects 3.6% GDP growth for this year and 3.8% for next year, with the tourist industry playing a significant role in these projections.

Exports dropped 5.9% YoY in May, from a 4.9% YoY drop the previous month. Still, the drop was better than an 8% YoY decrease forecast for May in a Reuters poll.


4) Eurozone headline inflation edges lower in June, but core rate picks up

Inflation in the Eurozone came in slower than expected in June to the lowest level since January 2022, but core inflation remains stubbornly high.

According to the preliminary data on Friday, inflation in the Eurozone rose 5.5% in June, which was lower than an expectation for a 5.6% increase by analysts. However, core inflation, which excludes the volatile food and energy prices, rose to 5.4% after edging lower to 5.3% in May and 5.6% in April. Still, it was lower than a consensus for a 5.5% rise.

Despite the lowest level in more than a year, inflation data remains well above the central bank’s target of 2%.