Market Roundup 21 April 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,690.55 points, increased 10.20 points or 0.61% with a trading value of 71 billion baht. The analyst stated that buying pressure in the sector that benefit from lower commodity prices buoyed the market higher, especially mid-cap stocks beverage, logistic, financial and banking stocks.

The analyst expected the Thai stock market to be stable tomorrow due to a series of hike in the past few days as investors continued to monitor the Fed’s Chairman Jerome Powel speech later tonight on the economic and monetary outlook.


2) Thailand to consider lifting Covid restrictions for tourist inbounds

At the upcoming meeting on Friday (22 April), Thailand’s Centre for COVID-19 Situation Administration (CCSA) is likely to approve the cancellation of RT-PCR testing and Thailand Pass for inbound travelers who arrived after May 1, which is considered a factor boosting the Thai tourism industry.

After the mandatory RT-PCR test 72 hours before arrival in Thailand was revoked in early-April, the number of tourists increased by more than 60% over March. Asia Plus Securities stated that this is beneficial for country reopening plays, including tourism (MINT, ERW), tourist destinations (CPN, CRC, MAJOR), and transportation (AOT, AAV).


3) Traders betting on three rates hike by ECB in 2022

Traders are now expecting three-quarter-points interest rate hikes from the European Central Bank this year, as their expectation grows on record high inflation which will push policy markers to raise interest rates above zero.

Money markets are pricing a 75 basis point increase by the ECB’s December decision, according to swap contracts linked to the euro short-term rate. The move would mark the deposit rate positive for the first time since 2012 from an all-time low of minus 0.5% currently.

Meanwhile, Euro-zero inflation exceeded estimates by surging 7.5% in March from a year ago.


4) Shares in refining sector trade rise on record high of gross refining margins

Shares in the oil refining sector opened higher on Thursday after yesterday’s gross refinery margin set record high at USD20.09 per barrel.

According to CGS-CIMB Securities Thailand, the rally in oil refining stocks this early Thursday morning was a result of yesterday’s record-breaking gross refinery margin (GRM) of USD20.09 per barrel. Since the beginning of April, GRM has averaged USD18.1/barrel, compared to USD2/barrel in 2Q21.

The increase in refining margins is attributable to rising refined oil prices as a result of the Ukrainian war, which left Russia unable to export oil. Additionally, many countries have reopened their borders, which has led to an increase in demand for oil, particularly jet fuel, as well as a global economic recovery.