1) Thai stock market overview
Thailand’s SET Index closed at 1,519.12 points, decreased 9.69 points or 0.63% with a trading value of 56 billion baht. The analyst stated that the Thai stock market moved in a negative territory without any positive catalysts to support the market as the upcoming PM voting was only a short-term upside. Meanwhile, the Fed’s uncertainty on rate hike continued to weight on the market sentiment.
2) Reuters poll predicts Thailand’s 2Q economy to grow 3.1% on higher tourist influx
A Reuters poll suggests that the rising number of international tourists will contribute to the Thai economy expanding by 3.1% in the second quarter of this year.
This is an increase from the 2.7% expansion seen in the previous quarter.
The median projection of analysts polled by Reuters anticipated that quarterly growth in gross domestic product (GDP) would have been 1.2%, down from 1.9% growth in the previous quarter.
Tourist arrivals are likely to rise gradually as the economy recovers, but they remain significantly lower than before the COVID-19 outbreak. It is expected that Thailand will welcome 29 million tourists this year, down from 40 million in 2019.
Since October 2022, exports, the country’s main economic engine, have been declining, reflecting sluggish global demand, notably from China, Thailand’s largest trading partner.
In keeping with the Bank of Thailand’s projection, a Reuters poll anticipated that annual average growth will be 3.7% this year and 3.8% in 2024.
3) China’s property giant Evergrande files for Bankruptcy in the U.S.
Chinese real estate giant Evergrande group sought bankruptcy protection in a U.S. court on Thursday as the country’s real estate crisis worsened.
Evergrande was dubbed the “world’s most heavily indebted property developer” and was said to have become a symbol of China’s real estate market crash.
In the filing filed with the Manhattan bankruptcy court, the company requested protection under Chapter 15 of the US bankruptcy code, which shields non-US corporations undergoing restructuring from creditors who intend to file lawsuits or seize assets in the United States. The restructuring discussions for Evergrande are currently taking place in Hong Kong, the Cayman Islands, and the British Virgin Islands.
In March of 2021, Evergrande went into default and unveiled an offshore debt restructuring plan. Since March 2022, the trading of Evergrande shares has been suspended.
According to the petition, Evergrande affiliate Tianji Holdings and its subsidiary Scenery Journey also filed for Chapter 15 bankruptcy protection in a Manhattan court.