Major stock markets in Asia traded lower on Monday as concerns on Fed’s aggressive move from last week carried over to today, while oil prices also plunged in the morning session as well.
As of 10:45 local time in Thailand on April 25, 2022, Nikkei dropped 1.94%, SSEC fell 2.72%, Hang Seng Index plunged 2.53% and IDX Composite slipped 0.22%.
Thailand’s SET Index opened at 1,676.41 points, decreased 14.18 points or 0.84%.
Oil prices plunged on Monday morning as concerns grow on lower oil demand after China is racing to control Covid-19 resurgence in Beijing, while Shanghai also further tightened restrictions despite weeks of lockdown earlier.
The international benchmark Brent crude fell 2.83% to $103.63 per barrel and West Texas Intermediate dropped 2.83% to $99.18 per barrel.
Mr. Ekpawin Suntarapichard, investment strategist of the Siam Commercial Bank Securities (SCBS), through “Kaohoon Jor Talad Program” on April 25, 2022, stated that the pullback on global equities amid concerns over the Fed’s aggressive move on rate hike as Jerome Powell pointed out to a 50bps hike in May, which investors were expecting another 50bps afterward as well as tighter balance sheet shrinking.
The strategist stated that the overall outlook for the Thai market is not on the downside, seeing the index could not hold its ground above 1,700pts and expecting the downside to continue into next month with 1,620pts as an ideal level to accumulate stocks.
Mr. Suntarapichard recommended ERW to benefit from arrival tourists, giving a support level at THB3.7 and a resistance level at THB4-4.10 per share. Meanwhile, BEAUTY is also another security that could benefit from returning tourists, giving a support level at THB1.49-1.50 and a resistance level at THB1.60 per share.
Leasing stocks are also seeing a wave of speculation from investors, recommending AMANAH with a support level at THB6.00 and a resistance level at THB6.50-6.90 per share.
