Analysts flagged potential downswings to the Thailand Stock Exchange (SET) index due to ongoing business uncertainties in Russia and loan defaults in China’s property market. Over the past week, the SET index experienced a seven day consecutive drop, and despite brief rallying, finished in the red.

 

Concerns stemming from smaller stock performances and news of Chinese property market default have contributed to cautious investments and overall market instability leading to business uncertainty. Recent development saw the SET index decrease by 0.49%, settling at 1,478.10 points.

 

Rakpong Chaisuparakul, senior VP of KGI Securities (Thailand), suggests the trend of ‘sideways down’ market activity may persist due to underlying investor anxieties. These concerns, contributing to business uncertainty, revolve around international economic health and the potential repercussions of major central banks’ continued rise in interest rates. He noted the lack of impact from China’s recent fiscal stimulus on their economic situation.

 

Asia Plus Securities (ASPS) also highlighted implications from the quickly resolved unrest in Russia, which still holds the potential for escalating anew. This instability and business uncertainty could consequently cause an increase in commodity prices, inflation hikes and, as a result, hurt stock markets, reported Bangkok Post.

 

By Alex Morgan

Caption: Photo Courtesy of zawya.com

 

Full Story: https://thethaiger.com/news/business/thai-stock-slide-continues-amid-chinese-property-defaults-and-russia-turmoil

 

-- © Copyright Thaiger 2023-06-28

 

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Would be impossible to understand the real economic position of Thailand. Stories of tourism, exports etc going gangbusters then the next story you read the opposite. I live North East Thailand and have seen whole streets that used to be lined with businesses and restaurants now nearly all shut. With domestic borrowings at near 90% GDP, I'm surprised how the country continues on. Other countries ring alarm bells at 60%

4 hours ago, Kenny202 said:

Would be impossible to understand the real economic position of Thailand. Stories of tourism, exports etc going gangbusters then the next story you read the opposite. I live North East Thailand and have seen whole streets that used to be lined with businesses and restaurants now nearly all shut. With domestic borrowings at near 90% GDP, I'm surprised how the country continues on. Other countries ring alarm bells at 60%

I believe you.

Where are you, do you visit other towns, what is the mood of the people and who do they blame.

As they wait so long for a FFP government to enact the wishes of the electorate what will they feel if it is all taken away?

A post with a trolling music video has been removed.

10 hours ago, Kenny202 said:

With domestic borrowings at near 90% GDP, I'm surprised how the country continues on. Other countries ring alarm bells at 60%

They removed the clanger.

Whether it is Thailand or any other country, a significant economic downturn is unavoidable. The damage caused by Corona, rising interest rates (mortgage) , and soaring inflation from the last years are already sufficient reasons for "hard times." Thailand will also not be able to escape from it. People just dont have the money anymore.

My wife had a restaurant and things seemed to get worse about 6 months AFTER covid. Covid period was slower but ok. And most of her customers were educated middle income people with stable jobs. I couldn't work it out as their income probably still the same. But after thought I realized many of these people in debt up to their necks and what little disposable income they had every month would be eaten up by inflation....particularly electricity and fuel rising so much not to mention everything else. I guess would be a similar situation all over the world though I doubt household debt would be as extreme here. 

 

What is annoying though are the completely polar opposite headlines in the news. One side....obviously various departments responsible for economics here talking themselves up with what they claim is going to happen by the end of the year....and then there are the factual reports which are the complete opposite.  

Edited June 28, 20233 yr by Kenny202

15 hours ago, snoop1130 said:

due to ongoing business uncertainties in Russia and loan defaults in China’s property market.

And Thailand's inability to form a Government.