Market Roundup 2 March 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,689.81 points, decreased 4.47 points or 0.26% with a trading value of 107 million baht. The analyst stated that the Thai stock market moved in both positive and negative territory in anticipation that further sanctions could be imposed on Russia as the attack in Ukraine intensified. However, the energy sector that accounts for a majority of Thai stocks were able to cushion the downfall.

The analyst expected tomorrow’s session to weaken or rebase, giving a support level at 1,675 points and a resistance level at 1,700 points.


2) Analyst expects limited downside for SET Index amid Russia-Ukraine conflict

Asia Plus Securities (ASPS) stated that while negative sentiment from the Russia-Ukraine conflict remains, the SET Index’s downside is limited and is more like a safe haven than the majority of markets as commodities account for almost one-third of the SET capitalization, providing valuable hedging against rising commodity prices.

ASPS cited that  Thailand is mostly unaffected by the Russia-Ukraine tension, as Russia accounts for less than 1% of Thailand’s trade.


3) Giant shippers suspend delivery to Russia

Danish shipping giant Maersk, Switzerland-based MSC and France’s CMA CGM, the world’s three biggest shipping lines, have suspended non-essential deliveries to Russia in a move to penalize Moscow for invading Ukraine.

The three shipping companies will no longer take bookings for goods from Russia while suspending most deliveries to the country.


4) Oil prices rose above $110 a barrel

Oil extended gains and broke above $110 a barrel, ahead of OPEC+ meeting and after the International Energy Agency warned that global energy security is under threat following Russia’s invasion of Ukraine.

Goldman Sachs has raised its forecast for oil prices from $105/bbl earlier to $125 a barrel by May if the Russian invasion of Ukraine results in a supply shock.