Market Roundup 19 January 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,658.24 points, decreased 2.03 points or 0.12% with a trading value of 96 billion baht. The analyst stated that the Thai stock market moved sideways to sideways-down in the same direction as global stock markets that were pressured by rising bond yield, resulting in a selloff in stocks with high P/E such as the electronics stocks. Tomorrow, the analyst expected a support level for SET Index at 1,650 points and a resistance level at 1,665-1,670 points.


2) UK inflation surges to 3-decade high on energy costs and supply chain issues

The U.K. inflation surged to a 30-year high due to higher energy costs, resurgent demand and supply chain issues, while investors are focusing on a rate hike in early February.

Inflation in the U.K. rose to an annual high of 5.4% in December 2021, the highest since March 1992, beating expectations of 5.2% from a Reuters poll. The reading is also higher than a 5.1% level in November.

The rise in inflation triggered expectations from investors for the Bank of England to raise its policy rate again after a 15 basis point hike to 0.25% last December.


3) Japan’s debt servicing to exceed 30 trillion yen in FY25 with rate hike

Japan’s debt servicing cost would exceed 30 trillion yen for the first time ever in 2025 if interest rate rises by 1% more than expected, according to a draft of the Ministry of Finance’s (MOF) estimates which is due later this month.

The MOF in its annual estimates over a period of five years projected debt servicing costs worth 24.3 trillion yen for the next fiscal year, expected to reach 28.8 trillion in fiscal year 2025 with the assumption of interest rate at 1.3%.