Market Roundup 16 June 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,561.10 points, decreased 32.44 points or 2.04% with a trading value of 97 billion baht. The analyst stated that the Thai stock market was pressured by concerns of aggressive moves by other central banks around the world to follow the U.S. Fed’s footsteps in raising interest rate to curb inflation. 

The analyst added that it is possible that the SET Index will continue to fall tomorrow, giving a support level at 1,560-1,650 points and a resistance level at 1,680 points.


2) European stocks traded amid rising concerns of aggressive moves by central banks

European stock markets traded lower on Thursday, as investors worried about future economic growth after central banks aggressively tightened monetary policy to tackle rising inflation.

The European Central Bank last week confirmed its intention to hike interest rates for the first time in more than 11 years by 25 basis points at the policy meeting next month, and it expects a further increase at the meeting in September. The ECB also lowered its growth projections.

Deutsche Bank stated in a report that “the deployment of the anti-fragmentation tools clears the pathway for policy rate liftoff and an accelerated tightening cycle.” This move opens the way for the ECB to implement three, 50-basis-point interest rate hikes this year.

Meanwhile, European gas prices went up at Thursday’s opening as a result of Gazprom’s supply cuts to Italy and Germany.


3) UTCC slashes Thailand’s growth forecast to 3.1% in 2022 amid rising energy prices

UTCC raises the inflation estimate for Thailand in 2022 to 6.0 percent, up from the previous projection of 1.5 percent, as effects of soaring energy prices; while the country’s growth forecast lowers to 3.1 percent.

The Economic and Business Forecasting Center at the University of the Thai Chamber of Commerce on Tuesday slashed its economic growth forecast for 2022 to 3.1 percent, down from 4.2 percent in November 2021. Rising global energy prices are viewed as a key factor. Also , it is estimated that Thai exports this year will increase by 6.3 percent compared to the prior estimate of 5.4% percent.