Market Roundup 3 February 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,669.05 points, increased 1.30 points or 0.08% with a trading value of 68 billion baht. The analyst stated that the Thai stock market moved slightly higher in a limited range after OPEC+ maintained its plan of increasing 400,000 bpd of output and the resolution of ECB and BOJ is expected to have limited impact on the market.

The analyst expected the Thai stock market to move higher to test the resistance level at 1,680 points while the resistance level is at 1,660 points.


2) GULF joins Singtel and ADVANC to establish a high-quality data center business

Gulf Energy Development Public Company Limited (SET: GULF) has announced that on February 2, 2022, the company entered into the Joint Development Agreement with Singtel and Advanced Info Services Public Company Limited (SET: ADVANC) to jointly establish a data center business in Thailand. The purpose of the collaboration is to capture Thailand’s rapid growth in digital infrastructure that is driven by innovation, technology, and a rising demand for data management and data storage from local as well as international organizations.


3) Thai pension fund eyes equity investments in China and India

Thailand’s Government Pension Fund is considering increasing its equity investments in China and India, where the rise of companies focusing on new technologies and the environment may provide high potential returns.

Chinese producers of microchips and renewable-energy equipment and Indian IT firms and drug makers are among the top stock candidates for the 1.1 trillion baht ($33 billion) state fund, according to GPF secretary-general Srikanya Yathip.


4) Maybank Thailand warns rising food raw material costs to dwindle profit for dining companies

Maybank Securities (Thailand) (MST) on Thursday expressed concern about rising food raw material costs, especially higher pork (+31% YoY) and palm oil prices (+43%YoY), which contribute 27.1% of normalized costs for Central Plaza Hotel (SET: CENTEL) and 13.9% for Minor International (SET: MINT). CENTEL is most exposed as about 60% of its normalized income comes from the restaurant business compared to MINT’s 20%. According to MST, each 1ppt increase in raw material costs reduces CENTEL’s profit by 2.4% and MINT’s profit by 1.8%.