Market Roundup 9 October 2023

Thailand’s SET Index closed at 1,431.72 points, decreased 6.73 points or 0.47% with a trading value of 47 billion baht. The analyst stated that the Thai stock market moved in the same direction as regional markets due to concerns over the conflict in the Middle East pressuring the market. Meanwhile, the market received a small boost from the energy stocks that prevented the index from falling further. The unrest in Israel would benefit energy stocks, but negative to power producers due to higher costs.

Thai tourism could also see an impact in the group tied with the Middle East. In addition, the analyst expected the Thai stock market to bounce back tomorrow.


The digital wallet handout by the Thai government remains a controversial issue. In the latest report, UBS expects the 10,000-baht handouts should boost Thailand consumption in 2024 which is estimated at 4% GDP growth from prediction of 3.5%. The policy is expected to not impact the long term debt sustainability due to the policy not breaking the 70% debt to GDP ceiling that IMF recommends. The handout is expected to roll out on 1Q24 and would send debt to GDP to 64% from 61.7%, and 63% even if the stimulus only targets the bottom 40% of income distribution.

UBS sees that Thailand’s current credit rating at BBB+ would not get cut in response to the one-off policy that would only affect the medium term risk.


Meanwhile, the story of Magnolia Quality Development Corporation Limited (MQDC), a Thai developer under the Chearavanont Family who also owned CP Group, has been in a spotlight among investors in concerns of liquidity crunch.

As for MQDC’s obligations, it has a total of 53.8 billion baht in outstanding debt until 2026 through long-term debentures. One series of debentures at a value of 1,379 million baht will mature this November. Meanwhile, nearly 10,000 million baht of outstanding is due in January next year through seven series of debentures.

Still, the official statement from MQDC was not published in the company’s website, but according to Bangkok Post, which cited an official statement from MQDC, the developer reassured that it has strong financial status and business operations are proceeding without disruption in all aspects.