Market Roundup 19 September 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,631.57 points, increased 1.17 points or 0.07% with a trading value of 60 billion baht. The analyst stated that the Thai stock market settled in a positive territory from a push by DELTA, including the energy sector. However, the analyst saw limited upside to the SET Index amid potential rate hikes by the U.S. Federal Reserve on Wednesday.

In addition, the analyst expected the SET Index tomorrow to move in a sideways trend with a support level at 1,620-1,625 points and a resistance level at 1,645-1,650 points.


2) KGI picks BANPU and PTG to outperform on strong coal demand and energy consumption

KGI Securities reiterated its Overweight recommendation on the Energy sector, with Banpu Pcl. (SET: BANPU) and PTG Energy Pcl. (SET: PTG) as its top picks, as tighter coal supply due to the EU’s ban on coal imports from Russia and stronger coal demand, especially from the EU after the gas shortfall in Europe have sent coal prices higher.


3) Bitcoin drops below 19,000 level ahead of Fed’s rate hike

The world’s largest cryptocurrency by market capitalization, Bitcoin, fell to a fresh three-month lows on Monday as investors are turning away from risk assets, especially cryptocurrencies, amid rising interest rates coming from the central bank.

The price of Bitcoin fell more than 6% to $18,387 on September 19, 2022, while Ether, the second largest cryptocurrency also fell 3% to a two-month low at $1,285.

Cryptocurrencies are falling or trading at their lower levels as investors are speculating for more Fed’s rate hike this year with an upcoming 75 basis points hike this Wednesday.


4) PBOC lowers 14-day reverse repos rate with 12 billion cash injection

The People’s Bank of China (PBOC) on Monday lowered the borrowing cost of 14-day reverse repos while stepping up cash injection of 2 billion yuan ($286.54 million) through 7-day reverse repos and another 10 billion yuan through the 14-day tenor as a countermeasure to higher demand towards the end of the third quarter.

The Chinese central bank resumed its 14-day short-term liquidity operations for the first time since late January, while dropping the interest rate on the liquidity tool by 10 basis points to 2.15% from 2.25%.


5) Thailand to benefit from India’s rice export ban, Nomura says

Thailand and Vietnam will most likely benefit from India’s ban on broken rice exports and a 20% duty on shipments of several varieties of rice, said Nomura on Monday, given that they are the world’s second- and third-largest rice exporters, making them the most possible choices for countries looking to fill the gap.