1) KSS expects SET Index to test 1,635-1,640 resistance level in response to China reopening
Krungsri Securities (KSS) expected Thailand’s SET Index to edge higher to the resistance level of 1,635-1,640 points, in anticipation of China reopening next year from January 8 onwards as well as the new stimulus package to boost tourism from the Thai cabinet. KSS expected more window dressing to settle NAV at the end of this year. However, trading volume could be small as the end of this year is drawing near, causing the market to easily fluctuate.
2) China to reopen for international tourists from Jan.8 onwards
China’s National Health Commission (NHC) announced a major shift on its Covid-19 policy in a move to live with the virus. The official name for Covid-19, the “novel coronavirus pneumonia”, will be changed to the “novel coronavirus infection” (Covid-19 infections) in which preventive and control measures for a Class B infectious disease will be applied to the new classified Covid-19 infections.
Starting from January 8, 2023, China will: no longer impose quarantine measures on COVID-19 infections and will take no quarantinable infectious disease control measures against entry persons and goods, along with other lifted measures.
Moreover, local authorities will be stripped of the power to shut down entire communities from early next month.
3) Oil continues to rise in fear of Russia cutting output and China reopening.
Oil prices rose more than 1% on Tuesday after Russia threatened to cut output in response to the G7 and EU price cap on Russian exports. Meanwhile, the report of China to scrap quarantine for international tourists along with other measures being lifted are signs for the reopening.
The international benchmark Brent crude rose 1.05% to $84.80 per barrel and the West Texas Intermediate gained 1.06% to $80.40 per barrel.
The Russian RIA news agency stated that Moscow may cut oil output by 5%-7% in early 2023 to challenge price caps from western countries.