Market Roundup 16 September 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,630.40 points, decreased 11.93 points or 0.73% with a trading value of 95 billion baht. The analyst stated that the Thai stock market edged lower in the same direction as regional markets, pressured by falling Dow Jones due to inflation and interest rate hike concerns.

The analyst expected the market next week to face difficulties in recovery as investors are looking ahead to the Fed’s meeting and economic outlook.


2) British pound drops to 37-year low

Sterling dropped to the lowest level in 37 years, dominated by strong dollars on the back of Fed’s potential rate hike and recession concerns.

For the first time since 1985, the British pound fell as low as $1.135 before bouncing back to $1.1378 on Friday.


3) Refining equities slip as GRM turns negative amid recession threats

Oil refining margins went negative yesterday, falling to about $-1.64 a barrel, prompting investors to sell shares in refining firms on Friday on fears of a global recession.

According to UOBKayHian Securities, losses in the refining stock sector today were driven by oil refining margins turning negative yesterday, falling to -$1.64 a barrel after hitting a new high earlier, on global recession fears, and production capacity is expected to return to normalcy in 3Q22, likely leading to a reduction in refining businesses’ profit.


4) Chinese retail sales and industrial production top expectations in August

China reported retail sales growth for August that beat economists’ consensus and picked up from the month before, while most economic indicators also topped estimates.

Retail sales in August rose by 5.4% from the same period last year, beating forecasts from Reuters poll for a 3.5% increase. Meanwhile, industrial production rose 4.2% in August on a yearly basis and beat the consensus for a 3.8% increase from a Reuters poll.