Market Roundup 23 February 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,696.45 points, increased 5.33 points or 0.32% with a trading value of 87 billion baht. The analyst stated that the Thai stock market moved in sideways trends in a positive territory, following the same movement in regional markets and Dow Jones Futures, after the market priced in some of the pressure from the Russia and Ukraine situation. The analyst said that SET Index could move higher tomorrow, giving a support level at 1,685 points and a resistance level at 1,710 points.


2) Singapore inflation rises at fastest rate in January

Singapore’s core inflation rose for a seventh straight month at the fastest rate in almost a decade amid expectations that the Monetary Authority of Singapore will act on inflation in April by tightening policy.

Core consumer price index excluding private transport and accommodation costs rose 2.4% in January, the highest since September 2012.


3) ECB could hike rates even before end of asset purchases

The European Central Bank could begin raising interest rates before pulling back on asset purchases, according to ECB policymaker Robert Holzmann.

EuroZone inflation is at record high in recent months with the ECB having given up its pledge not to raise interest rates this year while several policymakers are openly advocating an end to bond purchases this year, previously stated as a prerequisite for any rate hike.

Holdzmaan noted it was possible for the ECB to veer away from policy guidance of that an interest rate increase would only come “shortly after” quantitative easing ends.


4) Thai economy would continue to grow but with headwinds

Thai economy would continue to recover in 2022 but recovery would still remain fragile and uneven, according to the central bank’s last policy meeting released on Wednesday.

While upside inflationary risks had increased and headline inflation could exceed the upper side of the target range of 3% in early 2022, the risks of persistent increases in inflation remained low, the minutes said.