1) Thai stock market overview
Thailand’s SET Index closed at 1,545.60 points, increased 19.75 points or 1.29% with a trading value of 72 billion baht. The analyst stated that the Thai stock market jumped more than 20pts intraday in response to the voting approval of Pheu Thai’s Sretta Thavisin as the new prime minister of Thailand, marking a success in forming a coalition government. The analyst expected SET Index to extend gains tomorrow after the political issues have been solved.
2) Thailand’s Parliament Elects Pheu Thai’s ‘Srettha Thavisin’ as New Prime Minister
Pheu Thai Party’s candidate Mr. Srettha Thavisin has been elected by the parliament to become Thailand’s 30th prime minister after three months of political vacuum.
Unlike the previous voting session last month, led by Mr. Pita Limjaroenrat was the top candidate from the Move Forward Party and backed by Pheu Thai, which failed to receive voting favour from senators.
The Pheu Thai Party then switched to team up with former government parties, including Bhumjaithai Party, Palang Pracharath Party, United Thai Nation Party and other political parties that failed to form a coalition government with Move Forward also joined the Pheu Thai coalition as well. Meanwhile, the Move Forward Party was not included in this new coalition government due to the difference in political views.
3) S&P Global cuts multiple credit ratings of US banks
S&P Global cuts credit ratings of multiple U.S. banks on Monday and revised its outlook in a sign of warning that credit rating companies are reviewing the strength of the U.S. financial sector.
Associated Banc-Corp and Valley National Bancorp was downgraded by S&P on Monday on funding risks and a higher reliance on brokered deposits.
Meanwhile, UMB Financial Corp, Comerica Bank and Keycorp were also downgraded due to large deposit outflows and high interest rates.
S&P Global wrote in a note stating that a sharp rise in interest rates is weighing on many U.S. banks’ funding and liquidity. The credit agency expected deposits held by Federal Deposit Insurance Corp-insured banks will continue to decline if the central bank continues its quantitative tightening.
The downgrade came after Moody’s cut credit ratings of the U.S. banks earlier due to similar concerns after the collapse of Silicon Valley Bank.
