Market Roundup 3 October 2023

Thailand’s SET Index closed at 1,447.30 points, decreased 22.16 points or 1.51% with a trading value of 60 billion baht. The analyst stated that the Thai stock market made a new low in nearly three years and could extend the decline further as the market lacked a positive driver, resulting in a selloff. The negative sentiment came as the government’s measures could result in Thailand being downgraded by rating agencies.

The interest rate hike narrowed the earning yield gap as investors withdrew from risk for safer assets.


Thai baht today continued to weaken despite the recent policy rate hike by the Bank of Thailand to 2.50% from 2.25%, but still lower than other countries in the region, which causes a fund outflow to seek higher returns.

The baht currency reached an 11-month low on Tuesday after breaking the support level of 37 baht against the US dollar. The exchange is now THB 37.12 to one US dollar.

Despite the attempt from the Bank of Thailand to raise interest rate to 2.50%, it is still lower than other countries in the region as Malaysia stands at 3%, Vietnam at 9%, Myanmar at 7%, Indonesia at 5.75%, the Philippines at 6.25% and South Korea at 3.50%.


As for the energy sector, PTTEP was reportedly seeking to extend its contracts of two gas fields in Myanmar as both would end in 2028 and 2044. The said two fields could supply 50% of Myanmar’s electricity and 20% of Thailand’s, which is critical to both countries energy security.