Market Roundup 11 April 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,678.46 points, decreased 7.54 points or 0.45% with a trading value of 62 billion baht. The analyst stated that the Thai stock market closed lower, following the negative session in Asian markets in concerns of rising Covid cases in China that could result in lockdown and a slowdown in economic recovery. Meanwhile, investors were selling stocks before the long holiday to lower the risk that could occur during the closing period.

The analyst expected tomorrow’s session to move narrowly, while the rising U.S. bond yield would also pressure the market, even though the market already priced in the Fed’s rate hike and balance sheet tightening, giving a support level for SET Index at 1,665-1,670 points and a resistance level at 1,680-1,685 points.


2) China’s Guangzhou go into partial lockdown, Shanghai cases hit record high

China continues to battle the coronavirus resurgence that breaks its zero-covid policy and forces the government to shut down cities or part of the city to control the widespread Covid-19 omicron variant.

In the latest development of the lockdown measure on Monday, the southern city of Guangzhou had closed in-person classes at elementary and middle schools, turning to online courses instead. 

Meanwhile, the lockdown measure in Shanghai still remained as the number of infections in the city has yet to decline, but rose to a record high on Sunday with more than a thousand confirmed cases and almost 24,000 asymptomatic cases. The city started its partial lockdown in late March.


3) Thailand’s hospital stocks edge higher as traders seek safe havens

Thailand’s hospital stocks, led by EKH and BCH, are gaining momentum in Monday morning trading, despite the market’s bearish trend, as traders seek safe-haven plays amid concerns over the US Federal Reserve’s rate hike.

Maybank Securities (Thailand) (MST) stated that the Thai market will be overshadowed in the near term by concerns over the Federal Reserve’s aggressive rate hike. As a result, traders are looking for safe-haven plays, and equities in the healthcare sector are one of them.

Moreover, as the long holiday for the Songkran festival approaches, traders believe that COVID-19 cases may surge again, boosting positive sentiment toward the healthcare sector.