Major stock markets in Asia traded mostly higher on Tuesday amid optimism of the reopening in China as Covid-19 spread in Shanghai subsided.
As of 10:01 local time in Thailand, Nikkei rose 0.20%, SSEC was flat, Hang Seng Index jumped 2.0%, ASX 200 gained 0.25% and IDX Composite increased 1.14%.
Thailand’s SET Index opened at 1,597.73 points, increased 13.35 points or 0.84%.
Mr. Suchet Suktae, Deputy Managing Director, Media Marketing Department of ASL Securities Co., Ltd., through “Kaohoon Jor Talad Program” on May 17, 2022, expected the Thai stock market to rebound in the short-term, following a positive sentiment in the global market, giving a resistance level at 1,600 points and a resistance level at 1,580-1,560 points.
Mr. Suktae recommended COM7 (S35/R40), KCE (S58/R65-70), BDMS (S25/R28.50-29), SCGP (S50/R55) and JMT (S65/R70).
In addition, the analyst stated that if the U.S. Federal Reserve maintained its rate hike pace according to the market expectations and inflation started to ease, he expected the SET Index could rally to 1,650-1,670 points.
Thailand’s gross domestic production in the first quarter of 2022 grew at a faster-than-expected rate at 2.2% from the same period last year, according to the official data showed on Tuesday. The growth of the Southeast Asia second-largest economy came from strong exports and the relaxation of Covid-19 restrictions despite higher inflation that affects domestic consumption.
In the meantime, Shanghai aims to reopen broadly, which would allow normal life to resume for the city with 25 million population from June 1, according to the city’s official on Monday. However in the broader picture, it is estimated that 46 cities in China will continue to go under lockdowns as Covid-19 cases remain relatively high.
