Market Roundup 9 February 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,703.16 points, increased 18.93 points or 1.12% with a trading value of 135 billion baht. The analyst stated that the Thai stock market moved in a positive territory, boosted by foreign inflow into big-cap stocks, especially in the banking, telecom and retail sector. Meanwhile, investors were still waiting for the U.S. economic data and Fed’s signal for a rate hike. The analyst gave a support level at 1,680-1,690 points and a resistance level at 1,710 points.


2) Thailand’s central bank maintains policy rate at 0.50%

Thailand’s Central Bank reportedly voted unanimously on Wednesday to maintain the policy rate at a historic low of 0.50 percent, citing that the country’s economy continues to recover and the spread of the Omicron variant poses a limited risk to the public health system.

The Minister of Finance said that Thailand will support digital technology to help build a sustainable and broad-based economy.


3) ASPS recommends 6 stocks benefiting from legalizing hemp and cannabis

Asia Plus Securities (ASPS) expects traders to return to speculate on hemp and cannabis stocks after Public Health minister Anutin Charnvirakul signed a ministerial announcement on Tuesday officially removing cannabis and hemp from necrotic.

ASPS sees positive sentiment towards companies that plan to work on hemp and cannabis businesses and have sufficient capital, including upstream producers (grower) like STA, intermediate producers (extraction) like RBF and DOD, and downstream producers (using hemp and cannabis in products) like food-beverage plays (CBG, OSP and SAPPE).


4) Coal price continues to rise amid tight supply

Three Thai coal equities soared on Wednesday as tight supply continues to push Newcastle coal futures price higher. Krungsri Securities said that tight coal supply and port congestion should keep NEX Index high in 1H22, as the company anticipates weaker coal sales volume than expected in 4Q due to La Nina, resulting in a net profit decline of -22% QoQ to THB2.7 billion (vs THB468 million loss a year ago).

Heavy rainfall from La Nina and Indonesia’s export ban have tightened global coal supply and pushed up the NEX Index to US$241/ton this week vs average US$191/ton in 4Q. Thus, KSS expects the rainy season in Indonesia to reduce coal production, which will keep the NEX Index above US$200/ton in 1Q22.