Market Roundup 19 May 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,605.98 points, decreased 14.35 points or 0.89% with a trading value of 62 billion baht. The analyst stated that the Thai stock market had a negative sentiment from overseas factors amid the potential Fed’s rate hike and aggressive policy, while oil prices also decreased.

Still, the analyst stated that domestic sentiment on economic recovery from reopening was able to cushion the fall and kept SET Index above 1,600 points. 

Tomorrow, the analyst expected SET Index to move in sideways trends, giving a support level at 1,600 points and a resistance level at 1,620-1,625 points.


2) Philippines central bank raises interest rate by 25bps to 2.25%

The Philippines central bank on Thursday raised interest rates by 25bps to 2.25%, marking its first hike since 2018 as inflation continues to rise.

The Bangko Sentral ng Pilipinas (BSP) decided to raise interest rate after inflation in April came in at 4.9%, which was well above the full-year target of 2-4%. Inflation’s running average is 3.7%, which is still within target but already closing in to the cap. Inflation rose to 4.0% in March from February’s 3.0%.

BSP Governor Benjamin Diokno earlier hinted that the central bank could take an aggressive step to slow down inflation, saying that the space for maintaining their accommodative stance has considerably narrowed.


3) Chinese banks may cut benchmark lending rates for the second time this year

Chinese banks may cut their benchmark lending rates for the second time this year as COVID-19 lockdowns wreak havoc on the economy.

The one-year loan prime rate — the de facto benchmark lending rate — will likely be reduced by 5-10 basis points from 3.7% on Friday, according to 11 of 19 economists surveyed by Bloomberg. Seven of them see a cut to 3.65%, four predict 3.6% and the rest expect no change.