Market Roundup 19 April 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,675.62 points, increased 7.56 points or 0.45% with a trading value of 74 billion baht. The analyst stated that the Thai stock market made a technical rebound with buying pressure in big and mid-cap stocks, following a positive sentiment in border reopening that has sign of gradual recovery.

The analyst expected SET Index to move in sideways to sideway-down trends tomorrow with a support level at 1,670 points and a resistance level at 1,690 points.


2) Chinese tech stocks see sharp decline on Didi’s delisting and regulatory crackdown

Chinese tech stocks decline in Hong Kong on concerns over regulatory crackdown and potential delisting of U.S. traded shares.

The Hang Seng Tech Index dropped as much as 4% after China announced a two-month “clean-up” inspection of live streaming and short video platforms to crack down on illegal behaviors.

Sentiments are also impacted as DiDi Global Inc. said on Monday it’s planning to delist its U.S. listing before finding a new exchange for its stock.


3) Russia yet to find alternative reserve assets after international financial curbs

The Russian central bank is yet to find any clear alternatives to the world’s major reserve currencies after sanction over war in Ukraine left it with possession of only gold and yuan.

The central bank spent years reducing exposure to dollars before the invasion, holding just about 11% at the end of last year. More than a third of its reserve was in euro on top of additional currencies such as the British pound and the Chinese yuan.


4) KGI remains bullish on hotel sector, seeing Thai tourism to rebound in 2Q22

KGI Securities (Thailand) maintained “Overweight” rating on Thailand’s hotel sector, as tourism sentiment is poised to see a rebound from 2Q22 onwards given more progress on COVID-19 vaccine booster shots and loosened travel restrictions. Top Picks are S Hotels and Resorts Plc. (SET: SHR) (TP: THB4.80/share) and Minor International Plc. (SET: MINT) (TP: THB39.00/share), as both companies are expected to show strong growth momentum YoY backed by the performances of hotels outside Thailand.

KGI Securities foresees meaningful signs of recovery for Thailand’s tourism industry to come from 2Q22 onwards amid the expected improving COVID-19 situation and continued positive news coming in.