Market Roundup 28 November 2022

1) Thai stock market overview

Thailand’s SET Index closed at 1,616.91 points, decreased 3.93 points or 0.24% with a trading value of 38 billion baht. The analyst stated that the Thai stock market moved in the same direction as regional markets in concerns over Covid-19 and the protest situation in China that could impact the overall economic outlook. Meanwhile, there was a selloff among export-related stocks after exports data came out worse than anticipated with a contraction of 4.4%.


2) KS eyes domestic plays with positive outlook throughout 1H23

Kasikorn Securities (KS) has a positive outlook for SET Index throughout the first half of 2023, as previously estimated that the Index could move higher before the Federal meeting in the middle of December, and assesses a resistance level at 1,666 points and 1,700 points for the rest of the year. On the other hand, if the index decreased, KS affirms its outlook that the market would not make a new low or not lower than 1,550 points. KS maintained its first support level at 1,605 points, seeing that the Thailand economy and the profit of listed companies were still growing. In addition, KS gives recommendations to invest in Domestic Play stocks.

3) Thai exports contract 4.4% in October, badly missed expectations for 6% growth

Thailand’s exports in October missed expectations badly with a contraction of 4.4%, compared to 6.0% expansion forecast by Reuters Poll. The contraction in October came after a 7.8% expansion in September.

In October, exports of farm and agro-industrial products fell for the first time in 23 months, dropping 3.4% from the same period of last year. Meanwhile, industrial goods exports fell 3.5%.

Exports, a key driver of Thai growth, saw shipments to the United States slipped 0.9% YoY in October, while those to Southeast Asia fell 3.6%. Exports to China plunged 8.5%.

In October, imports also unexpectedly fell by 2.1% YoY, compared to a forecast 10% rise.

The kingdom recorded a trade deficit of $596 million in October, versus a forecast deficit of $1.15 billion.

The Commerce Ministry stated that Thai exports grew 9.1% in the first 10 months.Meanwhile, imports increased 18.3% and there was a trade deficit of $15.6 billion in the period.


4) Covid cases in China hit another record high as protests sparked in many cities

COVID-19 infections in China reported a daily record of new local cases of 40,052, up from 39,506 from a day earlier. China has been strict with Xi Jinping’s zero-COVID policy.

On Sunday, demonstrators and police fighted in Shanghai, because of the protests across the country over the restrictive COVID policy.

The protests worried about the management of policy and its impact on the economy. The stocks and oil price slid sharply on Monday.