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

23 Jul 2010

Financial Markets

June 2010 FCI: Rising, but May Slow with Higher Interest Rates (Business Brief No.2887)

The FCI (Financial Condition Index) developed by KResearch to measure financial costs in the primary market including bank loans, fund mobilizations via stock and bond markets, as seen in movements of the MLR rate, plus SET and bond market indices showed an improvement in June 2010 after feeling the impact of political tension over recent months. The increase stemmed mainly from a rebound in the SET index and declining bond yields amid high demand for investment.

During July 2010, however, the FCI is expected to decrease with the start of an upward trend in lending rates at commercial banks, in line with the latest BOT policy rate hike. This factor may affect the FCI and fund mobilization costs of businesses – especially SMEs – over the remainder of 2010 (if the economy does not experience a significant setback), wherein businesses should brace for gradual increases in financial costs.

Financial Markets