Market Roundup 22 November 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,615.33 points, decreased 3.53 points or 0.22% with a trading value of 57 billion baht. The analyst stated that the decline came in concerns of OPEC+ aiming to increase production, as well as the selloff in TRUE and DTAC. Asian markets also moved in both positive and negative territory


2) BofA expects Brent to average $100 in 2023 amid falling demand from recession

Bank of America expects Brent to average $100 and WTI to average $94 in 2023 amid a drag in demand growth from recession.

Due to higher energy prices, limited supplies and slower global GDP growth, BofA’s global oil demand growth was cut short from its projection for 3.6 million barrels per day in 2022 to just 1.9 million.

In 2023, BofA expected recession to further drag demand and prices lower, but its baseline demand growth projections is 1.55 million barrels per day as Asia including China reopens post-pandemic. The firm forecast Brent and West Texas Intermediate to average $100 and $94, respectively in 2023 with Brent spiking to $110 by 2H23.


3) TRUE and DTAC plunge sharply after announcement of cancelling amalgamation

The share price of TRUE and DTAC saw a sharp plunge right after the opening in the afternoon session as investors flooded the market with offers in response to the announcement during the lunch break indicating a cancellation of the amalgamation.

The share price of True Corporation Public Company Limited (SET: TRUE) closed 7.63% lower at THB4.60 per share. The share price fell as much as 8.03% earlier. Meanwhile, the share price of Total Access Communication Public Company Limited (SET: DTAC) plunged as much as 12.57% after the announcement. It closed at THB40.25, down 10.06%.

TRUE and DTAC announced a cancellation of the amalgamation between both companies due to an expired condition of voluntary tender offer.


4) China battles with rising Covid cases

China reported 28,127 new Covid cases in April, hitting a new high record since April 2022, and more of China’s cities have mass testing for COVID-19 and concerns about its economy as they fight a new wave.

Many parks in Beijing which are popular spots for runners and picnickers, were closed on Tuesday due to an outbreak and high infection rates. There are 1,438 new local cases, up from 962 on Sunday in the capital city.

According to an in-house index from Numura, localities accounting for about 19.9% of China’s total gross domestic product (GDP) were under some form of lockdown or restrictions. The figure saw an increase from 5.6% last Monday and not far off the index’s peak in April during the lockdown period in Shanghai.