Market Roundup 21 September 2023

1) Thai stock market overview

Thailand’s SET Index closed at 1,514.26 points, increased 6.36 points or 0.42% with a trading value of 42 billion baht. The analyst stated that the Thai stock market made a technical rebound after a sharp plunge yesterday as investors seek to invest in specific stocks that have their own catalysts such as power generator stocks that are expected to receive support measures from the government. However, the overall outlook remains negative as the Fed continued to signal for another rate hike, resulting in higher bond yields and US dollar.


2) BGRIM Moves Forward to Achieve 10GW Capacity with Major Restructuring Plan to Shift Assets to InfraFund

Thailand’s top power producer ‘B.Grimm Power’ is moving forward for a major restructure as the company is seeking potential partners to strengthen its business to achieve its goal of 10,000 MW production capacity.

Earlier this morning, Bloomberg reported, citing a source, that the company is considering selling a minority stake in its gas-fired power portfolio that could fetch $500 million to $1 billion from the transaction. The study is in an early stage and B.Grimm could still decide against any deal.

The report noted that the company is reaching out to other power companies in the region as well as private equity firms and infrastructure funds to gauge their interest.

Mr. Nopadej Karnasuta, Senior Executive Vice President – Investment, Innovation and Sustainability, and Thailand and Malaysia Region Business of B.Grimm Power Pcl. (SET: BGRIM), told ‘Kaohoon’ that the report was in line with the company growth projection to achieve its milestone of 10,000 MW production capacity. However, the selling of its stake is not meant to be seen as a move to raise cash or taking a step out of the business, but is meant to strengthen the business through partnership without the need to put burden on investors via capital increase.


3) Traders expect iIntervention from Japan’s government as yen hovers slightly below 150

Yen is at its weakest since last November. Many USD/JPY traders have been on guard since last night as the US Fed announced its rate decision and signals for the outlook, resulting in Japanese currency almost touching JPY 150 per USD, the same level that the monetary regulator, Bank of Japan (BoJ) had intervened in its currency last year.

The market will watch BoJ closely on this Friday rate decision, any detail given by its Governor Kazuo Ueda might give a sign on possible intervention again under the last on-going negative interest rate in the world.