Market Roundup 18 February 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,713.20 points, increased 1.62 points or 0.09% with a trading value of 95 billion baht. The analyst stated that the Thai stock market moved narrowly but positively in anticipation of foreign inflow, while the tension between Russia and Ukraine still remains and must be monitored closely. The analyst set a support level for next week at 1,6900-1,700 points and a resistance level at 1,730 points.


2) January inflation in Japan rises, but at a slower than predicted

Japan’s core consumer price index (CPI), excluding volatile fresh food prices but includes fuel costs, increased 0.2% in January from a year earlier, according to government data showed on Friday. Reuters poll had a median forecast of 0.3% and 0.5% rise in the previous two months.

3) Market expects dovish Fed in March meeting for 25bps hike

St. Louis Federal Reserve President James Bullard cautioned that inflation could become an even more serious problem without action on interest rates. James Bullard made his statement last week that he was open to a 50bps rate hike in March and a full percentage point by July.

According to Reuters poll, the market expects the U.S. central bank to kick off its rate hike with a 25bps hike, but a growing minority say it will opt for a more aggressive 50bps move to tamp down inflation. The market sees fed funds rate to finish the year at 1.25-1.50%.


4) PTT to acquire 10.78% stake of GPSC as part of restructuring plan

PTT and/or Siam Management Holding Company Limited will purchase 10.78% of GPSC from Thai Oil Public Company Limited as part of its restructuring plan at the total price of  approximately THB22,351 million.

The Restructuring Plan will enable PTT to increase its investment in the power business  through flagship companies which align with PTT’s strategy.