Market Roundup 21 July 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,546.31 points, increased 6.99 points or 0.45% with a trading value of 56 billion baht. The analyst stated that the better-than-expected results of the banking sector support the Thai stock market. The analyst stated that there could be a selloff to lower the risk as investors will monitor the Fed’s meeting and economic data in the second quarter.


2) BOJ keeps policy rate ultra-low at -0.1%

The Bank of Japan ended a two-day meeting on Thursday, keeping its ultra-low rate policy unchanged, as widely expected, despite raising its inflation outlook amid growing energy costs and a weak yen.

The central bank kept interest rates at minus 0.1% and its target for the 10-year Japanese government bond yield at around zero, in bid to support the nation’s economic recovery from the pandemic.

According to the bank’s quarterly outlook announced Thursday, the policy board anticipates core consumer prices excluding volatile fresh food prices to rise 2.3% in the current fiscal year ending March 2023, above the BOJ’s 2% target.


3) ADB cuts Thai economic growth in 2022 to 2.9% and China to 4%

The Asian Development Bank slashed its economic growth forecast in Thailand this year to 2.9% despite generally positive developments, according to a report published on Thursday. The revision was prompted by rising energy and commodity prices, and the global economic slowdown.

The growth forecasts are revised down slightly from 3.0% to 2.9% for 2022 and from 4.5% to 4.2% for 2023.

According to the Bank, rising prices of commodities and energy, as well as the slowing economy across the globe are likely to limit export demand, increase production costs, and lower household purchasing power.

Meanwhile, the Bank expected China’s GDP in 2022 at 4%, a sharp plunge from its earlier forecast of 5% growth as the country continued to adhere a zero-covid strategy in response to renewed outbreaks early in 2022 that triggered the reimposition of strict lockdowns.


4) Flows in Nord Stream 1 return to pre-shutdown level on Thursday

Nord Stream 1, the key gas pipeline to Europe, has resumed flow, said a spokesperson for the operator on Thursday, easing concerns that the maintenance period would be extended.

After it was closed for maintenance earlier this month, there were fears across the region that gas supplies could be completely shut off via the pipeline. Flows were scheduled to be restored Thursday following the completion of the works.

Thursday morning’s data from operator Nord Stream revealed that flow rates increased from zero to 29,284,591 kWh/h. On July 10, the last day of operations before the maintenance work began, flows were nearly the same, just around 29,000,000 kWh/h.

It’s likely to come as a relief to European officials who have been rushing to find alternatives to Russian gas.