Display mode (Doesn't show in master page preview)

Financial Market & Institutions Analysis

5 Jul 2019

Financial Markets

The Baht weakened slightly after rising to a new 6-year high, while the SET pared gains on domestic investor sell-offs.

The Baht fell slightly after having hit a 6-year high of THB30.52/USD. The Baht rose on net foreign stock and bond buying orders, while the US dollar fell on weak economic data that reinforced expectations about the Fed policy rate cut. However, the Baht pared those gains later, while the US dollar ... Read more

28 Jun 2019

Financial Markets

The Baht hit a new 6-year high, while the SET rose on foreign investors’ net-buying positions.

The Baht strengthened against the US dollar during the week. The Baht hit a new 6-year high of THB30.62/USD early in the week amid expectations that the Fed might cut its policy rate at its meeting in July. However, the Baht fell on position adjustment around mid-week before bouncing back after the ... Read more

25 Jun 2019

Financial Institutions

Short-term corporate loans push net loans in May 19 up by almost THB90 billion over-month, highest jump this year. (Business Brief No.3807)

Bridge loans and working capital loans for corporate accelerated in May while retail loans in almost every category, especially auto loans as well as secured and unsecured personal loans, continued to increase. Hence, the net loans of 14 Thai commercial banks as of the end of May 2019 rose by almost... Read more

21 Jun 2019

Financial Markets

The Baht recorded a 6-year high, while the SET hit its highest level in 8 months.

The Baht hit a 6-year high against the US dollar. The Baht fell briefly early in the week, as investors covered their short US dollar positions ahead of the FOMC meeting. However, the Baht rebounded later and hit the strongest level in 6 years at THB30.79/USD after the Fed meeting. Although the Fed ... Read more

20 Jun 2019

Financial Institutions

MPC meeting on Jun 26 is expected to keep policy rate unchanged…amid concerns over stability of monetary system (Business Brief No.3805)

KResearch expects Thailand’s Monetary Policy Committee (MPC) to keep the policy rates unchanged at 1.75 percent during its fourth meeting of 2019. The MPC is likely to weigh risk factors to financial stability in its monetary policy. In particular, household debts further accelerated in the first q... Read more

14 Jun 2019

Financial Markets

The Baht hit a 3-1/2 month high, while the SET rose on expectation of Fed rate cut within this year.

The Baht hit a 3-1/2 month high of THB31.14/USD. The Baht rose along with net foreign stock and bond buying orders earlier in the week. In addition, the US dollar tumbled on an expectation that the Fed might cut its policy rate by the end of the year, and disappointing US economic data, including we... Read more

7 Jun 2019

Financial Markets

The Baht hit an over 3-month high, while the SET rose on domestic and foreign factors.

The Baht hit the strongest level in over 3 months at THB31.28/USD. The Baht strengthened in line with net foreign stock and bond buying orders, while the US dollar fell on the Fed Chairman’s remarks that the Fed would act appropriately to sustain the US economic expansion, fuelling expectation of th... Read more

31 May 2019

Financial Markets

The Baht strengthened, while the SET dropped on the trade wars despite support from foreign investors’ net purchase.

The Baht strengthened, after having fallen earlier in the week. The Baht weakened along with other regional currencies that were pressured by concerns about the trade tension between the US and China. However, the Baht rebounded later in the week on net stock and bond buying orders of foreign invest... Read more

24 May 2019

Financial Markets

The Baht rebounded later in the week, while the SET fluctuated on US-China trade tensions.

The Baht rebounded later in the week, after having fallen to the THB32.00/USD level. The Baht fell early to mid week, along with the weaker Yuan and other regional currencies amid heightened trade tension between the US and China. However, the Baht pared losses somewhat and recovered later in the we... Read more

17 May 2019

Financial Markets

The Baht weakened, while the SET hit a 4-month low amid concerns over US-China trade tensions.

The Baht weakened later in the week. The Baht fell briefly in line with weaker Yuan and other Asian currencies. The Baht later rebounded to a 2-1/2 month high of THB31.45/USD on net foreign bond buying orders, as market participants put focus on the US Treasury’s FX report. However, the Baht fell la... Read more

10 May 2019

Financial Markets

The Baht hit an over 1-month high, while the SET faced institutional and foreign investor sell-offs.

The Baht tested the THB31.55/USD level, an over 1-month high, in late week. The Baht rose early in the week amid heightened tension between the US and China on their trade deal. In addition, there were short-covering orders, as Thai financial markets reopened after long holidays. The Baht weakened b... Read more

7 May 2019

Financial Institutions

Roles of ATMs amid Transition Towards Cashless Society Needed to be Recognized (Current Issue No.2987)

In 2018, the number of ATMs and electronic devices used in the commercial banking system contracted 0.98 percent YoY, against the 5.17 percent growth reported for 2017, representing the first shrinkage in 35 years. Such a contraction was consistent with the substantial increase in the number of fina... Read more

3 May 2019

Financial Markets

The Baht weakened slightly, while the SET rose almost throughout the week.

The Baht fell slightly, but still traded within a narrow range around THB32.00/USD. The Baht edged up early in the week, as the US dollar barely drew any support ahead of the FOMC meeting. The Baht weakened later in the week, as the US dollar rose after the Fed gave no signal to cut its policy rate ... Read more

30 Apr 2019

Financial Institutions

MPC Meeting, May 8, 2019: Policy Rate Likely on Hold Pending Economic Development (Business Brief No.3800)

We at KResearch expect that the Bank of Thailand’s Monetary Policy Committee (MPC) will likely keep its policy rate intact at 1.75 percent during the third meeting of 2019 pending an assessment of Thai economic development and results of the implementation of macro-and micro-prudential monetary poli... Read more

26 Apr 2019

Financial Markets

The Baht traded at the weaker side of THB32.00/USD before rebounding, while the SET faced pressure from domestic and foreign factors.

The Baht hit a near 4-month low of THB32.10/USD, before paring losses. The Baht fell in line with net foreign selling orders of Thai bonds and weak regional currencies. The US dollar rose on stronger-than-expected US economic data, and also extended gains against the Euro on the back of concerns abo... Read more

25 Apr 2019

Financial Institutions

The Baht Weakens Past THB32.00/USD Again…Regional and Political Factors May Pressure Thai Currency Ahead (Current Issue No.2985)

The Baht weakened past THB32.00/USD, moving within a range of THB32.02-32.09/USD on April 25, 2019, representing the weakest level since the beginning of 2019 and declining by approximately 1.5 percent from that reported one month ago. The softening Thai currency was consistent with cautious stance ... Read more

25 Apr 2019

Financial Institutions

Net loans in March 2019 increase MoM… but 1Q19 sees bearish sentiment which persists from late 2018 due to business loan repayment (Business Brief No.3798)

Net loans in March 2019 expanded from the previous month but the increase fails to lift the overall loans in 1Q19 back to positive territory. Net loans declined by 0.11 percent compared to the outstanding loans at the end of 2018, attributable chiefly to a steady drop of corporate and SME loans of s... Read more

19 Apr 2019

Financial Markets

The Baht fell to THB31.80/USD, while the SET rose on buying orders of local institutions.

The Baht fell to THB31.80/USD. The Baht weakened after the reopening of domestic financial markets following long public holidays. The Baht’s weakness was in line with net foreign stock and bond selling orders while the US dollar gained on stronger-than-expected US economic data, including a fall in... Read more

12 Apr 2019

Financial Institutions

Auto loan control measures …enhance long-term financial stability for businesses and borrowers (Current Issue No.2981)

The Bank of Thailand recently sent a warning about increasing risks associated with auto loans due to competitive tactics by some banks in collaboration with some auto companies and car dealers to approve loan amount beyond the collateral value. For example, they did not deduct the discount the cust... Read more

12 Apr 2019

Financial Markets

The Baht rose and the SET rebounded late in the week.

The Baht pared gains later in the week. The Baht rose early in the week on foreign investors’ net buying orders of Thai stocks, while the US dollar fell on a weak US Factory Orders data for February. Later, the Baht pared gains on net foreign bond selling orders, as well as weak regional currencies,... Read more

5 Apr 2019

Financial Institutions

Reduction in Funds Transfer Fee via Digital Channels Continued to Pressure NIM of Thai Commercial Banks in 1Q19 (Current Issue No.2977)

The cancellation of funds transfer fee via digital channels was the main factor that continued to pressure operating results of Thai commercial banks during 1Q19. It is expected that their fees from other transactions, in particular insurance brokerage, management and advisory fees, may grow at a sl... Read more

5 Apr 2019

Financial Markets

The Baht weakened and the SET paired gains after surging early in the week.

The Baht fell later in the week. The Baht rose early in the week in alignment with the Yuan and other regional currencies amid stronger-than-expected Chinese PMI reported for March. However, the Baht’s upside gains were still limited as market participants awaited a clearer picture of domestic polit... Read more

29 Mar 2019

Financial Markets

The Baht and the SET recovered somewhat at the end of the week.

The Baht rebounded slightly, after having fallen earlier in the week. The Baht fell early to mid week in line with net foreign selling orders in the Thai stock and bond markets, while investors kept an eye on political situations after the general elections. In addition, the US Dollar rose amid conc... Read more

26 Mar 2019

Financial Institutions

February Retail Loans Driven by Short-Term Factors (Business Brief No.3795)

Net loans accelerated in February, supported by key retail loans, i.e. home and auto hire-purchase loans, in line with growing loan demand as a result of short-term factors. These include higher number of home ownership transfers before the enforcement of a new home loan measure on April 1, 2019 and... Read more

22 Mar 2019

Financial Markets

The Baht stayed in a narrow range while the SET surged at the end of the week.

The Baht stayed in a narrow range, but was volatile after the MPC and FOMC meetings. The Baht moved in a narrow band before falling to a 2-week low of THB31.97/USD after the BOT’s MPC members unanimously voted to keep its policy rate at 1.75%, and the BOT also revised downward its 2019 GDP forecast.... Read more

15 Mar 2019

Financial Markets

The Baht rose slightly while the SET continued to drop over the past week.

The Baht edged up against the US dollar. The Baht rose slightly early in the week while the US dollar fell on weaker-than-expected US CPI and PPI reports for February. The soft US inflation figures reinforced expectations that the Fed’s policy rate-hike pace would be slower this year. However, the B... Read more

1 Mar 2019

Financial Markets

The Baht hit a 1-month low while the SET faced foreign investor sell-offs.

The Baht hit a 1-month low. The Baht edged up early in the week on optimism about the US-China trade talks. The Baht, however, tumbled to a 1-month low of THB31.76/USD on the back of foreign investors’ selling orders of Thai stocks and bonds late in the week. The US dollar also gained on the rising ... Read more

26 Feb 2019

Financial Institutions

Net loans in Thai commercial bank system in Jan 2019 decelerate during the business loan repayment season (Business Brief No.3790)

KResearch summarizes the information about loans, deposits and financial liquidity at 14 Thai commercial banks as of the end of January 2019 based on the Summary Statement of Assets and Liabilities with highlights as follows: ... Read more

22 Feb 2019

Financial Markets

The Baht reversed gains, while the SET index rose due to external factors

The Baht hit the highest level in more than 5 years at THB31.07/USD, before reversing those gains later in the week. The Baht rose along with risky assets and other regional currencies, including the Yuan amid the US-China trade talks. It also gained on hefty net foreign stock buying orders in mid-w... Read more

20 Feb 2019

Financial Markets

The Baht Surges toward THB31.00/USD amid Hopes for Positive Results in US-China Trade Talks (Current Issue No.2969)

It is worth noting that although foreign investors have held a net selling position in both the Thai stock and bond markets, with a combined worth of approximately THB20.4 billion, since early 2019, the Baht has appreciated quite substantially against other Asian currencies, in particular the Yuan, ... Read more

8 Feb 2019

Financial Markets

The Baht weakened while the SET index closed near last week’s level

The Baht traded in a narrow range, before weakening later in the week. Although the Baht moved within a limited range, it had a slightly strong bias on the back of net foreign stock and bond buying orders. However, the Baht fell later in the week on the BOT’s signal to step into the market ... Read more

1 Feb 2019

Financial Markets

The Baht hit an almost 9-month high while the SET index rose as Fed held interest rates steady

The Baht hit an almost 9-month high of THB31.18/USD after the FOMC meeting. The Baht rose in line with net foreign stock buying orders and other Asian currencies. The US dollar, however, tumbled on the Fed’s dovish statement. The Fed cut a reference to the Fed’s plan for further gradual rate hikes a... Read more

31 Jan 2019

Financial Institutions

Thai Baht surges past THB31.25/USD as weaker greenback continues to pressure Thai currency (Current Issue No.2962)

Thai Baht has surged to THB31.23/USD or up 4.4 percent from the beginning of this year due mainly to a weaker US dollar. The movement of Thai Baht was in alignment with other currencies in the region. However, from the beginning of this year, the Thai currency hit a record high in nine months and be... Read more

31 Jan 2019

Financial Institutions

MPC meeting on Feb 6 is likely to keep rate unchanged, while future rate hike depends on economic situation (Business Brief No.3786)

KResearch expects the Bank of Thailand’s Monetary Policy Committee (MPC) to keep the policy rate unchanged at 1.75 percent during the upcoming meeting after it raised policy rate by 0.25 percentage point on December 19, 2018. Since the Thai GDP growth begins to show signs of slowdown, the... Read more

31 Jan 2019

Financial Institutions

Stringent Control on Lenders Taking Car Registration Book as Collateral Set Clear Standards to Protect Consumers (Business Brief No.3785)

Over the past few years, the Bank of Thailand (BOT), Ministry of Finance and other relevant agencies have gradually introduced notifications and/or regulations to supervise various types of retail loans. Their attempts are intended to set clear scopes and conditions for related businesses, as well a... Read more

29 Jan 2019

Financial Institutions

Robust Net Loan Growth Seen at 2018 Yearend, Driven by Retail Loans (Business Brief No.3784)

In December 2018, net loans overall grew over the previous month by THB118 billion, or 1.03 percent MoM. As a result, net loans for 2018 increased 5.17 percent YoY, with net outstanding loans outstanding at THB11.63 trillion. Growth was seen in all types of loans, led by retail loans. Meanwhile, out... Read more

18 Jan 2019

Financial Markets

The Baht hit an 8-month high while the SET faced institutional investor sell-offs

The Baht hit an 8-month high before paring gains later in the week. The Baht rose in line with net foreign stock buying orders and rising risky assets. Meanwhile, the US dollar faced sell-offs on the back of weak US economic data, signals to slow the US-rate hike path from the Fed Vice Chairman, and... Read more

4 Jan 2019

Financial Institutions

Fixed deposit rate hike is in line with the BOT signal on policy rate increase and the banks’s attempt to maintain their market shares. (Current Issue No.2952)

The uptrend of interest rate is ultimately evident by commercial banks’s decisions to raise their interest rates by starting from deposit rates. Their fixed-deposit rates for three, six, 12, 24 and 36 months are raised by 25 basis points. Hence, the fixed deposit rates of some major commercial banks... Read more

4 Jan 2019

Financial Markets

The Baht hit a 7-month high while the SET index rose during the first week of the year

The Baht hit a 7-month high of THB32.00/USD. A stronger Baht was due to the US dollar’s sell-offs amid concerns about a partial government shutdown. Meanwhile, weaker-than-expected US economic data hurt the US dollar sentiment and reinforced worries about uncertain US interest rate hike cycle. The B... Read more

28 Dec 2018

Financial Markets

Baht rises while SET index rebounds slightly on last trading day of 2018

The Baht rose to test THB32.40/USD later in the week amid the US dollar’s sell-offs on the back of concerns about the US partial government shutdown, economic slowdown in the US and globally, as well as prolonged trade tension between the US and China.... Read more

26 Dec 2018

Financial Institutions

Credit Card Growth of Commercial Banks Sustained at 7% 0% Installment Remaining Most Favorite (Current Issue No.2950)

The credit card business is likely to end the year with satisfactory growth, similar to other types of retail loans. Toward the year-end, competition of the credit card business is characterized by active campaigns and special promotions presented by commercial banks and non-bank operators to boost ... Read more

24 Dec 2018

Financial Institutions

2019 Thai Bank Outlook … Many Challenges for their Profitability (Current Issue No.2948)

The year 2018 has been another year for Thai banks to always be vigilant of various issues. While their fee incomes have contracted due to the reduction of digital funds transfer fees, loan growth has been helpful in offsetting this negative factor. With the support of retail loan growth in the last... Read more

20 Dec 2018

Financial Institutions

The Monetary Policy Committee increases the policy rate for the first time in 7 years; the impact on economic growth is likely to be limited. (Business Brief No.3777)

The Monetary Policy Committee (MPC) agrees to lift the policy rate by 0.25 percentage points from 1.50 to 1.75, the first rate increase in seven years. The lift is aimed at building policy space for the future. KResearch views that the policy rate increase is unlikely to have a significant impact on... Read more

14 Dec 2018

Financial Institutions

MPC meeting on 19/12/18…Greater chance of interest rate hike After clear signal on enlarging policy space (Business Brief No.3775)

KResearch views that there is a greater chance that this year’s last meeting of the Monetary Policy Committee (MPC) will resolve to increase the policy interest rate by 0.25 percent after some signals were clearly sent by the committee on the necessity to rebalance the monetary policy in order to en... Read more

14 Dec 2018

Financial Markets

“The Baht rose slightly while the SET index fell sharply over-week.”

The Baht rose, but within a narrow range. The Baht rose slightly in line with the Yuan and other Asian currencies amid easing concerns about the US-China trade tension after news reported that China could undo the tariffs on American-made cars. However, the Baht’s upside gains were capped later whil... Read more

30 Nov 2018

Financial Markets

“The Baht strengthened while the SET index rose along with foreign stock markets as Fed might slow the pace of its interest rate hikes next year.”

The Baht broke the THB33.00/USD level. The Baht rose amid the US dollar’s sell-offs after the Fed Chairman said that the Fed’s benchmark rate is just below neutral level. The remarks were seen as a signal for a slower tightening cycle of the Fed rate hikes in 2019. However, the Baht’s upside gains w... Read more

23 Nov 2018

Financial Markets

“The Baht weakened while the SET index recovered somewhat late in the week.”

The Baht weakened later in the week. It briefly rose early in the week on doubts about the US rate-hike outlook next year after Fed officials expressed concerns about the weaker global economic outlook. However, the Baht reversed gains and fell later in the week on a weaker-than-expected 3Q-18 Thai ... Read more

16 Nov 2018

Financial Markets

“The Baht rose slightly, while the SET index remained in the downward trend.”

The Baht was stronger than THB33.00/USD again. It briefly fell early in the week on the US rate-hike prospect, which helped support the US dollar sentiment. However, the Baht rebounded later on as the US dollar faced sell-offs amid hopes for solutions toward the BREXIT deal and US-China trade negoti... Read more

9 Nov 2018

Financial Markets

“The Baht weakened, while the SET index fell due to external factors.”

The Baht was weaker than THB33.00/USD again. The Baht was volatile early in the week ahead of the US mid-term elections. However, the Baht rebounded later on as the US dollar fell after the midterm elections results. Democrats won the U.S. House of Representatives while Republicans held on to their ... Read more

9 Nov 2018

Financial Institutions

New housing loan requirement by BOT will stimulate transactions before its enforcement on April 2019 (Current Issue No.2936)

The Bank of Thailand has announced the criteria to supervise housing loans by adjusting certain details in the Consultation Paper and postponed the effective date to April 1, next year (from the initial schedule of January 2019). The new requirement will not cover purchase and sale contracts or down... Read more

2 Nov 2018

Financial Markets

“The Baht rebounded later in the week, while the SET index rose following institutional investor purchases.”

The Baht strengthened later in the week. The Baht hit a 2-1/2 month low of THB33.32/USD in early week amid the weakening Asian currencies and Yuan on the back of news that the US will escalate its trade dispute with China by imposing tariffs on all remaining imports from China. The US dollar rose fu... Read more

26 Oct 2018

Financial Markets

“The Baht broke the THB33.00/USD level, while the SET rebounded after falling below 1,600 points.”

The Baht weakened and later broke the THB33.00/USD level. The Baht fell on a disappointing Thai export data and hefty net foreign stock selling-orders during the week. Meanwhile, the US dollar rose amid risk aversion, triggered by concerns about the EU’s formal steps to reject Italy's budget and Chi... Read more

26 Oct 2018

Financial Institutions

Stable Net Loans and Deposits at Thai Commercial Banks in September 2018 (Business Brief No.3769)

In September, net loans in the Thai commercial banking system rose THB3.76 billion or 0.03 percent over the previous month, reaching THB11.345 trillion. The increase, which was supported by growth in all types of retail loans, resulted in the rise in net outstanding loans by 5.78 percent as compared... Read more

19 Oct 2018

Financial Markets

“The Baht rose slightly, while the SET dropped amid foreign investor sell-offs.”

The Baht strengthened, but its gains were capped later in the week. The Baht rose early- to mid-week along with net foreign bond buying orders while the US dollar fell on a weaker-than-expected US retail sales data. However, the Baht pared gains somewhat later in the week in line with falling... Read more

10 Oct 2018

Financial Institutions

Regulation on Auto-for-Cash Loans: Creating Standard for Retail Financing (Current Issue No.2932)

Government policy to expand the supervision of the providers of auto-for-cash loans to be approved by the Bank of Thailand and Ministry of Finance is an important step toward more extensive supervisory scope with respect to financial service providers. With a well-defined, transparent business frame... Read more

4 Oct 2018

Financial Institutions

Mortgage loan measures…to curb market imbalance before the uptrend of interest rates (Current Issue No.2929)

The Bank of Thailand has planned to issue macro-prudential measures to control speculation in the property market, where the measures are expected to set the loan-to-value (LTV) for the second home or other specific requirements to ensure debt servicing ability of the borrowers. KResearch ... Read more

28 Sep 2018

Financial Markets

“The Baht stayed in a tight range, while the SET index closed a bit higher than the last week level”

The Baht rose slightly late in the week, but its movement remained tight. The Baht fell early in the week in line with other regional currencies amid steepened tension related to the US-China trade deal after China canceled trade talks with the US before the latter’s new tariffs on Chinese goods wer... Read more

26 Sep 2018

Financial Institutions

2018 Loans Likely Exceed Projection Target on Steady Growth Seen in August Net Loans (Business Brief No.3763)

Net loans in the Thai commercial banking system (14 commercial banks) grew THB26.4 billion to THB11.34 trillion in August, rising 0.23 percent MoM or 5.85 percent YoY. The increase was supported by all types of retail loan while SME loans began to recover somewhat. However, because there were still ... Read more

14 Sep 2018

Financial Institutions

MPC Meeting, September 19, 2018: Policy Rate Likely on Hold at 1.50% Pending an Appropriate Rate Hike Ahead (Business Brief No.3759)

We at KResearch are of the view that the Monetary Policy Committee (MPC) will likely keep its policy rate steady at 1.50 percent during the meeting scheduled for September 19, 2018. This is because it may not see the need to raise its policy rate much at this time despite steady improvements in the ... Read more

14 Sep 2018

Financial Markets

“The Baht strengthened, while the SET index rebounded strongly”

The Baht hit a 2-month high last week. The Baht fell briefly early in the week on concerns about the fragile emerging markets while the US dollar extended gains on a stronger-than-expected US Non-farm Payrolls data. However, the Baht rebounded later in the week, along with net foreign buying orders ... Read more

7 Sep 2018

Financial Markets

“The Baht edged weaker, while the SET index fell below the 1,700 level”

The Baht traded in a narrow range, but weaker than the previous week. The Baht fell on weak regional currencies that were pressured by sell-offs of emerging market currencies on the back of their fragile economies. Meanwhile, the US dollar was supported by ongoing trade disputes between the US and i... Read more

31 Aug 2018

Financial Markets

“The Baht weakened later in the week, while the SET index rose over-week”

The Baht fell, after having hit a 2-month of THB32.50/USD. The Baht rose on net foreign bond buying orders and the US dollar’s sell-offs on the back of US-Mexico trade deal. However, the Baht weakened later in the week, as the US dollar strengthened on stronger than expected US economic reports that... Read more

24 Aug 2018

Financial Markets

“The Baht hit a 2-month high, while the SET index rose over-week”

The Baht broke the THB33.00/USD level. The Baht rose to a 2-month high of THB32.65/USD after the Yuan and other Asian currencies rose on the back of optimism on the US-China trade negotiations. The US dollar faced sell-offs after US President Trump criticized the Fed Chairman and said that he disagr... Read more

17 Aug 2018

Financial Markets

“The Baht recovered and the SET index rebounded late in the week”

The Baht rose late in the week. The Baht fell briefly early of the week, after concerns about the Lira crisis triggered sell-offs of emerging-market assets, Asian currencies, and the Baht. However, the Baht later pared those losses and recovered on the back of the rebounding Yuan and other Asian cur... Read more

10 Aug 2018

Financial Markets

“The Baht weakened late in the week, while the SET index closed a bit lower than the last week level.”

The Baht pared gains around end of week. The Baht earlier rose on net foreign stock buying orders, and the rebounding Yuan after the PBOC signaled that they would take action to stabilize the Yuan movement. The US dollar sell-offs on the back of the falling US bond yields were also the Baht’s suppor... Read more

6 Aug 2018

Financial Institutions

MPC Meeting, August 8, 2018: Policy Rate Likely Kept on Hold at 1.50% to Ensure Steady (Business Brief No.3755)

KResearch expects that the Monetary Policy Committee (MPC) will resolve to maintain their policy rate at 1.50 percent during the fifth meeting of 2018 slated for August 8 to ensure that the recovery is seen across all economic sectors and inflation moves toward to its set target. It must be noted th... Read more

3 Aug 2018

Financial Markets

“The Baht weakened after the FOMC meeting, while the SET index fluctuated.”

The Baht weakened after the FOMC meeting. The Baht briefly rose on net foreign stock and bond buying orders. However, the Baht reversed those gains later in the week, along with weakening Yuan and regional currencies. Meanwhile, the dollar rose on the Fed’s statement, signaling that they would likel... Read more

26 Jul 2018

Financial Markets

“The Baht rose, while the SET index closed at over 1,700 points.”

The Baht rose against the US dollar. A stronger Baht was in line with other Asian currencies, while the US dollar faced sell-offs after the US President said that the Fed’s tightening cycle might have impacts on the US economy and the strong US dollar could result in weaker US competitiveness. The U... Read more

25 Jul 2018

Financial Institutions

Solid Growth Seen in June Net Loans, Driven by Corporate and Retail Loans while Deposits Declined (Business Brief No.3753)

Net loans overall for June increased over the previous month by THB106 billion to THB11.31 trillion, or 0.95 percent MoM, the highest level in 1H18. When compared to the same period of 2017 and at the end of 2017, June net loans grew 5.02 percent YoY, or 2.23 percent YTD, chiefly at large banks in l... Read more

13 Jul 2018

Financial Markets

“The Baht hit a 9-month low, while the SET index soared up over-week.”

The Baht hit over 9-month low of THB33.29/USD. The Baht fell to THB33.36/USD, the weakest level in 9 months. A weaker Baht was in line with the Yuan and regional currencies amid concern about the international trade situation between the US and China. Meanwhile, the US dollar also gained on strong U... Read more

6 Jul 2018

Financial Markets

“The Baht weakened, while the SET index closed at over 1,600 points.”

The Baht hit over 8-month low of THB33.29/USD. The Baht and regional currencies fell along with risky assets, and Chinese Yuan (although the PBOC signaled to monitor the Yuan movement) amid concern about the international trade situation between the US and China, as US tariffs imposed on imports fro... Read more

29 Jun 2018

Financial Markets

“The Baht hit over 8-month low of THB33.22/USD, while the SET index closed at a 10-month low.”

The Baht hit over 8-month low of THB33.22/USD. The Baht fell along with Chinese Yuan, most Asian Currencies, and other risky assets amid concerns about the international trade situation between the US and their trading partners, especially restrictions on investment and trade. The Baht was also pres... Read more

26 Jun 2018

Financial Institutions

P2P Lending ... a good opportunity for retail borrowers At the heart of the platform is risk management (Current Issue No. 2917)

Around 4-5 financial technology start-ups have begun providing Peer-to-Peer Lending (P2P Lending) in Thailand by focusing on retail borrowers, especially SME entrepreneurs. The online lending platform should provide these borrowers with an increased access to finance with a cheaper interest rate bec... Read more

25 Jun 2018

Financial Institutions

May Net Loans Grew Steadily MoM while Deposits Fell Slightly (Business Brief No.3749)

Net loans for May increased to almost the same level as that in April by THB65.9 billion, or 0.59 percent MoM to THB11.20 trillion. When compared to the same period of 2017 and at the end of 2017, May net loans grew 4.99 percent YoY, or 1.27 percent YTD due to the low base of last year. The increase... Read more

22 Jun 2018

Financial Markets

“The Baht hit over 7-month low of THB33.00/USD, while the SET index dropped over-week.”

The Baht broke the THB33.00/USD level to hit over 7-month low. The Baht fell along with net foreign stock and bond selling orders, while the US dollar rose further on the Fed Chairman’s remarks about more interest rate hikes in the coming months. Meanwhile, concerns about the international trade sit... Read more

15 Jun 2018

Financial Markets

The Baht hit over 5-month low, while the SET index rose early before dropping through the end of the week.

The Baht hit over 5-month low of THB32.46/USD. The Baht fell on net foreign stock and bond selling orders, while the US dollar rose strongly after the FOMC meeting. The Fed gave a hawkish signal that there would be two more rate hikes later in the year, compared with one hike signaled earlier. The ... Read more

8 Jun 2018

Financial Markets

“The Baht fell late in the week, while the SET index closed near last week’s level.”

The Baht fell later in the week. The Baht edged up early- to mid-week in line with strong regional currencies, net foreign bond buying orders, and the US dollar sell-offs, especially against the Euro that was supported by expectation for the ECB’s signals to terminate their QE program by the end of ... Read more

1 Jun 2018

Financial Markets

“The Baht fell slightly, while the SET index remained falling.”

The Baht weakened slightly. The Baht fell to the weaker side of THB32.00/USD in early to mid week, along with weak regional currencies and net foreign selling orders for Thai stocks, while the US dollar also gained, especially against the Euro, pressured by concern about political uncertainty in Ita... Read more

25 May 2018

Financial Markets

“The Baht bounced back to the stronger side of THB32.00/USD, while the SET index fell over-week.”

The Baht rose to the stronger side of THB32.00/USD. The Baht briefly fell early in the week on news that the US and China put trade war on hold. However, the Baht reversed those losses and strengthened later in the week, while the US dollar fell on concerns about uncertain outcome of US-China trade ... Read more

11 May 2018

Financial Markets

“The Baht rebounded somewhat after falling to the weak side of THB32.00 level, while the SET index closed lower over-week.”

The Baht broke the THB32.00/USD to hit a 4-month low of THB32.22/USD. The Baht fell, while the US dollar extended gains on expectations of the Fed’s rate hikes, boosted by surging global oil prices and higher inflationary concerns. However, the Baht pared those losses later in the week, as the... Read more

11 May 2018

Financial Markets

“The Baht weakened, while the SET index fell sharply.”

The Baht weakened further against the US dollar. The US dollar rose on US economic data, including industrial production, and Philadelphia Fed business outlook survey that came out stronger than expected, as well as the rising US bond yields. US 10-year Treasury bond yield hit its highest level sinc... Read more

10 May 2018

Financial Institutions

The MPC is expected to maintain policy rate at 1.50%; monetary policy direction should be clearer in 2H18

KResearch expects the Bank of Thailand’s Monetary Policy Committee (MPC) to “maintain” their policy rate at 1.50 percent for the third time in 2018 during its meeting on May 16, 2018 to support the continued momentum of Thai economic growth. Domestic spending has not fully recovered amid limited su... Read more

4 May 2018

Financial Markets

“The Baht weakened, while the SET index fell at the end of the week.”

The Baht weakened to nearly THB31.75/USD. It appreciated early in the week, while investors sold the US Dollar somewhat to adjust their positions before the latest Fed meeting. However, the Baht pared those gains and weakened later on Thai bond sell-offs by foreign investors. The US Dollar wa... Read more

27 Apr 2018

Financial Markets

“The Baht weakened, while the SET index fell over-week.”

The Baht hit a 2-month low. The Baht fell, while the US dollar rose along with the rising US bond yields. US 10-year yield surged to above 3%, the highest level in 4 years. In addition, the weak Baht was also in line with net stock and bond selling orders of foreign investors during the week. ... Read more

27 Apr 2018

Financial Institutions

Fed Policy Rate Expected to Remain at 1.50-.175 in May Meeting…Continued Rise in US Bond Yield to be Monitored (Business Brief No.3739)

KResearch expects the Federal Reserve (Fed) will resolve to maintain its policy interest rate at 1.50-1.75 percent in its third meeting of this year, in awaiting to assess further developments of the US economy and risks arising from trade disputes. Given the US attempts to minimize their trade defi... Read more

26 Apr 2018

Financial Institutions

Net loans in March 18 improves, contributing to overall outlook in 1Q18 as expected (Business Brief No.3738)

Net loans in March 2018 grew at a slower pace MoM, up by THB19 billion from February or 0.17 percent to THB11.07 trillion. Nonetheless, the overall lending in 1Q18 continued to expand well YoY, even though the beginning of the quarter was the period when borrowers had to repay their deb... Read more

20 Apr 2018

Financial Markets

“The Baht weakened, while the SET index rebounded to close at over 1,800 points again.”

The Baht fell slightly against the US Dollar, but its movement overall remained within a narrow range all week. The baht fell along with weakening regional currencies, while the US Dollar rose on higher US Treasury yields after Fed officials remarked that the US inflation rate would likely inc... Read more

26 Mar 2018

Financial Institutions

February Net Loan Growth boosted by Business Loans High Liquidity Overall (Business Brief No.3735)

Net loans in February 2018 rose THB67 billion over January to USD11.05 trillion, thus rising 0.61 percent MoM and 4.36 percent YoY. Most increases were seen in large business loans, including working capital and term loans, while retail loan growth was mainly driven by auto financing on new and used... Read more

23 Mar 2018

Financial Institutions

MPC Meeting, March 28: Policy Rate Likely Unchanged at 1.50% to Support Economic Growth (Business Brief No.3734)

We at KResearch expect that the Monetary Policy Committee (MPC) will likely keep its policy rate unchanged at 1.50 percent during the second meeting of 2018 scheduled for March 28 to ensure continuing growth in the Thai economy going forward amid a number of external risks, in particular a possible... Read more

26 Feb 2018

Financial Markets

“The Baht weakened slightly, while the SET closed at near last week’s level.”

The Baht fell slightly against the US Dollar. The Baht briefly rose early in the week as the US dollar tumbled on a weak US New Home Sales report and falling US bond yields. However, the Baht reversed those gains and weakened later on the Fed Chairman’s viewpoint toward US overall economic and... Read more

19 Feb 2018

Financial Markets

“The Baht weakened, while the SET rebounded to over 1,800 points after some sell-offs.”

The Baht weakened against the US Dollar. The Baht fell to mid week amid the US Dollar short-covering ahead of the release of the latest FOMC minutes. The US dollar also gained on the US rate-hike outlook and rising US bond yields. However, the Baht pared some losses somewhat later in the we... Read more

4 Jan 2018

Financial Institutions

泰铢币值创近3年新高,关注多项不确定因素(焦点话题 第24年2893号)

泰铢币值从新年开始就升值到接近32.20泰铢兑换1美元的水平,为近3年多来的最高值,与本区域其他币种的走向相一致,同时美元仍未获得明显的支持因素,虽然今年美联储将继续逐渐上调政策利率,不同于泰国政策利率在今年大部分时间内仍将维持1.5%的水平不变。 开泰研究中心认为,泰铢从2018年首几个工作日起就进入升值区间的局势,与资金流入的情况相符,主要因为获利于泰国经济基本面因素强健和看好经济趋向复苏,尤其是经常项目顺差,开泰研究中心预料2018年泰国的经常项目可能连续第三年实现逾400亿美元的顺差。... Read more