Market Roundup 10 May 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,622.78 points, increased 18.29 points or 1.14% with a trading value of 83 billion baht. The analyst stated that the Thai stock market made a technical rebound after the plummet in oil prices dragged bond yield down to below 3%, while starting to see a speculation in high-growth stocks that supported a recovery in Dow Jones and Nasdaq.

The analyst expected the Thai stock market to fluctuate tomorrow as investors are awaiting U.S. inflation date, giving a support level at 1,580-1,590 points and a resistance level at 1,630-1,637 points.


2) Thailand’s consumer confidence falls for 4th consecutive month amid inflation worries

Thailand’s consumer confidence index fell for the fourth consecutive month in April, marking the lowest point in eight months, amidst continuously rising cost of living caused by growing inflation fears, which has placed the global economy in limbo.

The University of the Thai Chamber of Commerce reported on Tuesday that the consumer confidence index dropped to 40.7 in April from 42.0 in March.


3) Demand for natural gas among Chinese industries fall by 43% in 2022

Natural gas demand among Chinese industries in the factory-heavy province of Jiangsu dropped by 43% in April from a year earlier, underscoring signs of economic slowdown.

Across the entire country, gas demand fell by around 6% last month from a year earlier to the lowest since September 2021, while industrial consumption was down 8.4%, Morgan Stanley said in a note that cited data from BSC Energy Consulting. The figures compared with a 2.1% year-on-year decline in overall demand in March.


4) BlackRock moves from bullish view on China

BlackRock Inc. parred its bullish stance on China as COVID-19 lockdowns threatened the nation’s economic growth and after steep declines in local stock prices.

The firms held a “modest overweight” view on Chinese assets, attractive valuations made up for the risks, BlackRock Investment Institute strategists including Jean Boivin and Wei Li wrote in a note Monday.

However, the firm is now recommending a neutral stance on Chinese stocks and bonds as the zero Covid policy of Beijing is taking a toll on the economy.