Market Roundup 24 August 2023

1) Thai stock market overview

Thailand’s SET Index closed at 1,557.41 points, increased 8.40 points or 0.54% with a trading value of 68 billion baht. The analyst stated that the Thai stock market continued to edge higher as electronics stocks lead the market in response to a higher-than-expected NVIDIA’s earnings. The analyst expected positive momentum to continue tomorrow and advised investors to monitor the upcoming Fed’s speech.


2) Thai electronics stocks leap after Nvidia reports 400% increase in earnings

The near 100% increase in Q2 revenue reported from Nvidia Corp. (NVDA) last night (23 Aug) resulted in all technology and chips-related stocks to trade higher around the world.

As for the Thai market, leading the pack is DELTA Electronics Pcl that went up 7.28% to ฿110.50 per share, followed by KCE Electronics Pcl with an increase by 6.84% to ฿50.75 per share. Meanwhile, SVI Pcl gained 2.55% to ฿8.05 and HANA Microelectronics Pcl rose 0.4% to ฿63.00.

The announcement from yesterday (23 Aug 2023) by Nvidia reported the revenue with +88% QoQ and +101% YoY at $13.51 billion, mainly from Data Center segment that accounted for $10.32 billion (+141% QoQ and +171% YoY.) Nvidia reported a net income of $6.7 billion for the quarter ended 30 July, representing an increase of +422% from the same period last year. Its high net income growth was the result of the gross margin that jumped over 25 percentage points from the previous quarter to 71.2%.


3) India expects to ban sugar eExports in October

India is expected to ban sugar exports in the next season beginning October, marking the fist in seven years for halting its shipment due to bad climate that causes a lack of rain, reported Reuters which cited three sources.

The exclusion of India’s shipment could give the sugar benchmark in New York SBc1 and London LSUc1 another push. Both are trading around multi-year highs. However, this also sparked fears of further inflation on the global food market.

At the current season, India allows mills to export only 6.1 million tons of sugar, which would end on September 30, a significant drop from a record of 11.1 million tons last season.

Sugar prices in India rose this week to the highest level in almost two years. Meanwhile, retail inflation in India hit a 15-month high of 7.44% in July and food inflation rose to 11.5%, the highest in over three years.