Market Roundup 2 August 2023

1) Thai stock market overview

Thailand’s SET Index closed at 1,550.28 points, decreased 5.78 points or 0.37% with a trading value of 55 billion baht. The analyst stated that the Thai stock market slowed down after a series of hikes last week, pressured by the negative sentiment in the global market even after there was a brief moment of certainty in Thai political issues that pushed the Thai stock market higher.


2) Bank of Thailand votes unanimously to raise rates by 25bps to 2.25%

The Bank of Thailand (BOT) unanimously voted on Wednesday to raise its benchmark rates by 25 basis points, bringing an interest rate to 2.25%.

The raise was in line with the consensus polled by Reuters.

The central bank noted that the Thai economy should continue to expand, driven mainly by tourism and private consumption. Merchandise exports contracted in the short term partly due to subdued demand from China and global electronic cycle, but should pick up looking ahead as the global economic activity gathers momentum. Risks to growth outlook increase from potential delay in merchandise export recovery and domestic political uncertainties.


3) Fitch Ratings downgrades U.S. credit rating to AA+ from AAA

Fitch Ratings downgraded the United States’ long-term foreign currency credit rating to AA+ from AAA, which drew angry responses from the White House over the decision.

The world’s top credit agency points to fiscal deterioration over the next three years and repeated debt-limit political standoffs as well as last-minute resolutions have eroded confidence in fiscal management and threaten the government’s ability to pay its debts.

The downgrade raises controversy regarding the timing that came two months after the Democrat and the Republican reached a debt ceiling agreement just days prior to the historic default that could have put the global economy into chaos. The agency did put the U.S. credit on a negative watch in May over the standoff about the debt ceiling bill.