Market Roundup 27 June 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,580.20 points, increased 11.44 points or 0.73% with a trading value of 59 billion baht. The analyst stated that the Thai stock market made a technical rebound after pricing in most of the negative sentiment as crude oil prices edged lower and investors were retreating from declining bond yields to risk assets.

The analyst expected a window dressing should support the market tomorrow, giving a support level at 1,560 points and a resistance level at 1,590 points.


2) BOT says no unscheduled meeting prior to August meeting

Piti Disyatat, the Director of Economic Research in the Monetary Policy Group at the Bank of Thailand, said that there will be no unscheduled meeting regarding rate hikes and will maintain its inflation target at 1-3%.

In the Analyst Meeting, the director stated that the pace of interest rate hike is varied depending on each country’s policy to tame rising inflation rate. Thailand’s economic recovery would be slower due to its reliance on generating revenue from tourism.

As for the concern on wider gap between the June and August meeting amid fluctuation in the market, the director noted that the 6-8 weeks gap is to give the Monetary Policy Committee (MPC) time to acquire sufficient data for the meeting.

Mr. Disyatat added that there should not be any surprise meeting during the gap between the June and August meeting.


3) China’s industrial profits drop 6.5% in May despite easing Covid curbs

Profits of China’s main industrial companies fell at a slower pace in May after manufacturing activity resumed, official data showed Monday. However, Covid-19 restrictions still weighed on factory production and squeezed factory margins.

Profits fell 6.5% from a year earlier in May, improving from a sharp decline of 8.5% in April, according to data released by the National Bureau of Statistics (NBS).

As the conflict between Russia and Ukraine prompted a global rise in commodity prices, the coal mining and oil and gas extraction industries led the way to May’s improvement.

However, profits in the manufacturing sector dropped 18.5% in May as equipment manufacturing improved significantly, senior NBS statistician Zhu Hong said in a statement.