Market Roundup 15 August 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,625.25 points, increased 2.99 points or 0.18% with a trading value of 72 billion baht. The analyst stated that the Thai stock market moved narrowly following weaker-than-expected economic data in China. However, buying power in the refining sector buoyed the market after positive 2Q22 results. The analyst expected SET Index to continue moving in sideways trends between 1,615-1,630 points.


2) ERC increases Ft by THB0.6866

The Energy Regulatory Commission (ERC) resolved to increase Ft by 68.66 satang per unit for September to December 2022, resulting in a total of THB 4.72 per unit due to an increase of Spot LNG price.


3) Morgan Stanley expects refining margins to continue in upcycle

Morgan Stanley wrote in its research, stating that refining margins have gone from above peak to trough cycle headline margins over the past two quarters, which raised scepticism from investors toward its view on the refining upcycle. However, the firm still believed that supply side would remain strong as demand adjusts to the new price normal.

Although headline refining margins have volatility of 25% daily in Asia, MS believed strength in diesel margins and quick recovery in gasoline margins in the past few weeks does underline marginal cash cost economics in play as the majority of global refiners are struggling to raise their utilization rates.