Market Roundup 5 September 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,622.00 points, decreased 0.15 points or 0.01% with a trading value of 55.6 billion baht. The analyst stated that the Thai stock market moved in sideways-trends, following the same direction as regional markets as investors remained concerned over Russian shutting gas pipelines to Europe that could have an impact on the economy.

The analyst stated that there was a buyback at the end of the session, which helped mitigate earlier losses. Tomorrow, the analyst expected SET Index to continue moving in sideways trends, giving a support level at 1,600 points and a resistance level at 1,625-1,630 points.


2) BOT expects inflation to peak in third quarter

Bank of Thailand (BOT) Governor Sethaput Suthiwartnarueput expected Thailand’s inflation to reach its peak in the third quarter and is likely to average more than 6% this year. Still, long-term expectations were still within BOT’s target range, while there is a low change of a wage-price spiral.

However, he noted that the central bank will act to prevent the inflation engine from starting.

The projection from the governor came out after the government reported that Thailand’s headline consumer price index (CPI) rose 7.86% in August, the fastest pace in 14 years, but still within the range of forecasts.


3) IFA says JAS-ADVANC deal appropriated, but bear huge risks for shareholders

The Independent Financial Advisor (IFA) has considered the disposal of Triple T Broadband Public Company Limited (TTTBB) and Jasmine Broadband Internet Infrastructure Fund (SET: JASIF) by Jasmine International Public Company Limited (SET: JAS or the company) to Advanced Info Service Public Company Limited (SET: ADVANC) appropriated.

However, IFA noted that the transaction will carry a significant risk to the company’s shareholders, especially the uncertainty of NBTC on approving the deal. Thus, IFA had the opinion that the shareholders should not approve the deal.


4) EU to discuss urgent interventions on energy crisis; euro near 20-year low

A draft document, seen by multiple foreign media outlets, said European Union countries’ energy ministers are set to include those tools on a list of emergency intervention options to be discussed at a meeting  on Friday (September 9), as the bloc races to respond to the deepening crisis.

On Saturday (September 3), Russia’s state-owned Gazprom decided at the last minute not to restart the key Nord Stream pipeline following maintenance. Russia’s latest move to cut off supply is expected to drive natural gas prices toward record highs not only in Europe, but also in Asia.

The euro fell as low as 99.04 US cents on Monday. This is slightly above the August level of 99.01 cents, the lowest since December 2002.