Stocks stabilize after a week of inflation-fueled worries

Recap: Global equities regained ground on Friday after a turbulent week sparked by concerns over soaring inflation, aggressive rate hikes and slowing economies.

The SET index traded in a range of 1,578.11 and 1,624.26 points this week before closing yesterday at 1,584.38, down 2.77% from the previous week, with a figure of ‘average daily business of 80.93 billion baht.

Institutional investors were net buyers of 4.49 billion baht and brokerage firms bought 4.11 billion baht. Retail investors were net sellers of 5.72 billion baht and foreign investors sold 2.89 billion baht worth of shares.

Journalists: More than $300 billion has been wiped out by a crash in cryptocurrency prices since Monday, with Bitcoin falling to a 16-month low near $25,000 amid a run on so-called stablecoins. Investors were alarmed after TerraUSD broke away from its dollar peg and lost around 80%.

Saudi Aramco dethroned Apple as the world’s most valuable company on Wednesday as soaring oil prices sent stocks soaring and tech stocks slumped.

Oil prices rose after a tumultuous week of trading as investors weigh the prospect of a European Union ban on imports of Russian crude and uncertainty over China’s ongoing struggles with Covid.

Average gasoline prices in the United States hit an all-time high this week at $4.37 per gallon (equivalent to 40 baht per liter).

China’s export growth slumped in April to its lowest level in nearly two years as a resurgence of Covid shuttered factories, led to transportation curbs and caused traffic jams at key ports.

Chinese tech companies are quietly pulling out of business in Russia under pressure from U.S. sanctions and suppliers, despite Beijing’s calls for the companies to resist foreign coercion.

HSBC is facing pressure from its largest shareholder, China-based Ping An Insurance, to consider splitting off the bank’s Asian operations to improve returns, sources told Bloomberg.

Higher US interest rates, decades-high inflation and Covid lockdowns in China add to investor bets that Southeast Asian stock markets could be one of the best places to park their money right now, analysts said this week.

Hawkish expectations for Asian emerging market interest rates are mounting as traders believe central banks can no longer ignore the threat of domestic inflation.

Malaysia’s central bank unexpectedly raised its benchmark interest rate on Wednesday as rising commodity prices, tight supply chains and strong demand stoked inflationary pressures.

Singapore has called on businesses to hire more locals as a drop in the number of foreign workers due to a pandemic, as well as an easing of virus measures, continue to cause the worst labor shortage in the country. the city-state for two decades.

Copper prices fell to a seven-month low on Thursday and other industrial metals fell as traders feared a slowing global economy would require less of the metal.

Thailand’s economy is showing signs of improvement this year with slow but sustained growth expected if all parties involved step in to help, Finance Minister Arkhom Termpittayapaisith said.

The Bank of Thailand said the baht’s movement had had a limited impact on inflation and the economy, after the currency hit its lowest rate against the U.S. dollar in five years on Thursday, at 34.75 baht. .

The Joint Standing Committee on Trade, Industry and Banking estimates that Thailand can manage GDP growth of between 2.5% and 4% this year if an increase in the daily minimum wage is appropriate.

Labor groups continue to push for a new minimum wage of 492 baht a day, up 48% from the current average, a proposal considered too extreme by many economists and employers.

The economic recovery is supported by stronger exports, but much will depend on the recovery in the number of foreign tourists, said Finance Minister Arkhom Termpittayapaisith, who remains confident that the government will meet its revenue target of 2.4 trillion baht for 2022.

Phuket aims to attract 1 million foreign tourists in the fourth quarter and 3.5 million in total this year.

Thai food exports are expected to rise 5% this year after robust 26% growth in the first quarter, driven by the Russia-Ukraine conflict and growing concerns about food shortages in many countries.

Durian exports to China will earn an additional 120 billion baht this year, Agriculture Minister Chalermchai Sri-on said.

The government will likely extend the diesel price subsidy which is due to end on May 20, Prime Minister Prayut Chan-o-cha said on Tuesday, with the retail price in Greater Bangkok remaining at 32 baht per litre. The actual retail price of diesel is 43.50 baht.

Trade Minister Jurin Laksanawisit conceded that some product price increases will have to be approved as their manufacturers face significantly higher costs due to higher oil prices.

Consumer confidence plunged for the fourth straight month in April, hitting an eight-month low, as consumers remain concerned about rising costs of living and high oil prices.

The Digital Economy Promotion Agency (Depa) has launched the EatsHUB food delivery platform to help small and medium-sized restaurants increase their revenue through digital channels.

Social commerce platform Line Shopping is aiming for 150% growth in the number of participating stores and a 200% increase in transactions this year, noting that social commerce now accounts for 61% of total e-commerce value.

Coming : The eurozone will release March trade figures on Monday and Britain will release March jobs figures on Tuesday. Also on Tuesday, the United States will release April retail sales and Japan will release first quarter GDP.

Britain and the eurozone will release April inflation on Wednesday. The United States will release building permits in April, Canada will release inflation in April, and Australia will release employment data in April.

The United States will release April existing home sales on Thursday. Britain will release retail sales for April on Friday.

Actions to watch: Capital Nomura Securities recommends investing gradually in stocks that benefit from stagnating and falling energy prices, such as power plants. Top picks include BGRIM, GPSC, and GULF. The brokerage firm recommends IVL and SCGP for petrochemical and packaging stocks and OSP, ICHI and SAPPE in the beverage sector. The long term investment pictures are BCP, TOP, BDMS, BCH ADVANC, DTAC, MAKRO, GPSC, JMT, TIDLOR and KCE. For small and medium stocks, he recommends PYLON, BE8, JMART and BCPG.

Finansia Syrus Securities recommends speculating on stocks expected to post strong first quarter earnings and value stocks such as GFPT, ILINK, SAPPE, SMT and TH.

Technical view: Capital Nomura sees support at 1565 and resistance at 1604. Maybank Kim Eng Securities sees support at 1580 and resistance at 1620.

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