Market Roundup 8 June 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,636.89 points, increased 4.97 points or 0.30% with a trading value at 57 billion baht. The analyst stated that investors were cautious in the trading session as the Monetary Policy Committee maintained the policy rate at 0.50 percent, but with 4:3 votes, raising speculation of a rate hike in the next meeting.

The analyst expected SET Index tomorrow to move within the range with a support level at 1,630-1,620 points and a resistance level at 1,645-1,650 points, while advising investors to monitor other monetary policies in other countries.


2) Thai central bank maintains interest rate at 0.50% in a tight vote

On June 8, 2022, the Monetary Policy Committee (MPC) voted 4 to 3 to maintain the policy rate at 0.50 percent despite surging inflation. Three members voted to raise the policy rate by 0.25 percentage point.

The resolution of the central bank was in line with the market expectations to maintain the policy rate at 0.50 percent.

The market is now on edge for a rate hike in the next meeting on August 10, 2022, as the vote in this meeting was very close.


3) India central bank raises key interest rate by 50bps to tackle surging inflation

The Reserve Bank of India raised its key interest rate by 50 basis points on Wednesday in a move to tackle rising inflation amid spiking energy and food prices.

The 50 basis points was in line with the majority of market expectations as the policy rate will be raised to 4.90% after the meeting of the Monetary Policy Committee (MPC). Meanwhile, the Standing Deposit Facility rate and the Marginal Standing Facility Rate were adjusted higher by the same figure to 4.65% and 5.15%, respectively.

A hike was necessary as retail inflation in April increased to 7.79% from the same period of last year, which was above the central bank’s tolerance band for inflation of 2% to 6%.


4) Marijuana-related stocks rise prior to legalization of cannabis tomorrow

Most of marijuana-related stocks have seen significant price increases on early Wednesday trading in anticipation of the formal legalization of cannabis products on June 9.

The production, import, export, distribution, consumption and possession of cannabis — with the exception of psychoactive substances — will be formally legalized on June 9 when an announcement issued by the Ministry of Public Health and published in the Royal Gazette on February 9 takes effect.

Except for extracts having more than 0.2% tetrahydrocannabinol (THC),  all parts of cannabis and hemp plants will be removed from the narcotics list under the new legislation.

DOD rose 13.85%, GUNKUL +2.54% and  RBF +3.21%.