Market Roundup 12 April 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,674.34 points, decreased 4.12 points or 0.25% with a trading value of 60 billion baht. The analyst stated that the Thai stock market moved narrowly due to a selloff before the long holiday to lower the risk. However, a buying pressure from hospital stocks was able to cushion the fall for SET Index.

The analyst recommended investors to monitor the U.S. inflation, giving a support level for next week at 1,650-1,660 points and a resistance level at 1,680-1,700 points.


2) Chinese Premier Li issues third warning on economic growth amid virus curbs

China’s Premier Li Keqiang in less than a week issued a warning about economic growth risks, signaling heightened concern about the outlook as widespread Covid lockdowns disrupt production and spending.

Li told local authorities at a seminar on Monday that authorities should “add a sense of urgency” when implementing existing policies. His remarks included, China will study and adopt stronger economic policies as needed to support the economy.

Pro-growth measures should be brought forward and accelerated, including tax and fee cuts, sales and usage of special bonds, and incentives to keep jobs, Li added.


3) Economist warns inflation may hurt Thailand’s low-income households most

Economists warn that low-income households will be hit much harder by inflation than high-income households after headline inflation reached its highest level in 13 years in March, adding to fears over the rising cost of living.

Thailand’s weekly economic review, released Tuesday by Krungsri Research, showed that rising inflationary pressure is straining household and business expenses, and that low-income groups are expected to face rising prices which are more than six times faster than last year. In contrast, inflation is predicted to remain largely unchanged for high-income earners this year.

Krungsri Research expects that rising car and food prices, combined with a surge in energy prices caused by the Ukraine war, will likely keep Thai inflation above the target range until at least 4Q, when the rate may begin to soften.