Thailand’s SET Index closed at 1,407.02 points, decreased 6.51 points or 0.46% with a trading value of 32.6 billion baht. The analyst stated that the Thai stock market edged lower than 1,410 points following the selloff of major stocks, such as energy stocks, AOT, ADVANC, hospital stocks, and finance stocks, despite the rise in power plant and bank stocks. The index was supported by stocks with positive dividends.
The analyst expected the market to move slightly tomorrow, while facing the continued selloff from foreign investors.
Magnolia Quality Development Corporation Limited (MQDC) has reaffirmed the public that it will meet obligations with its debentureholders, which highlights its financial capability to pay the debt following last year’s false reports saying that the developer lacks liquidity.
Mr. Wisit Malaisirirat Chief Executive Office reiterated in the company’s statement that MQDC has set aside cash to pay its obligations for debentures with a maturity date in January 2024, and there will be 4,100 million baht worth of debenture maturing in 22 January 2024 and 5,604 million baht in 29 January 2024, which the company noted that the payment has been prepared for debentureholders.
The Bank of Thailand explained in response to the call from the government regarding its tight monetary policy stance, saying that the country’s economy could not be fixed by only adjusting interest rates, which are already low compared to the global’s.
The comment came after Prime Minister Srettha Thavisin showed his determination for the bank’s officials to cut interest rates, as he aimed to revive the slow economy with stimulus measures, while stating that people and businesses were affected by the currently high rates.
Thailand’s economic growth in 2024 is expected to have more stability, as inflation is expected to be within the central bank’s target range of 2-3%.
The central bank noted that the Thai economy is still in line with forecast and there is no need to call for a special rate meeting.
Escalating tensions in the Red Sea has put the global economy in a crisis as global supply chains have been disrupted and freight costs have been accelerating at a rapid pace.
Freight rates have been rising tremendously, especially on the Shanghai to Rotterdam route for WCI Container Freight Benchmark Rate per 40 Foot Box, after the attacks from Houthi fighters on commercial vessels.
According to the data index compiled by Bloomberg for WCI Shanghai to Rotterdam Container Freight Benchmark Rate per 40 Foot Box, the freight rate rose to 4,406 last week, up from about 1,000 in the final quarter of 2023, which is about 340% rise. This is the highest level since the disruption of global trade during the Covid-19 pandemic years.
