Recap: Global stocks headed for a second consecutive down week as investors tracked developments in Ukraine and assessed the economic risks from US Federal Reserve policy tightening to curb inflation.
The SET index moved in a range of 1,670.55 and 1,686.14 points this week before closing yesterday at 1,676.8 points, down 0.1% from the previous week, in daily turnover averaging 70.88 billion baht.
Foreign investors were net buyers of 5.02 billion baht, retail investors bought 2.48 billion and brokers purchased 1.03 billion baht worth of shares. Institutional investors were net sellers of 8.53 billion baht worth of shares.
Newsmakers: US Federal Reserve chairman Jerome Powell said the central bank was prepared to raise interest rates in half-percentage-point steps and high enough to deliberately slow the economy if it concluded such steps were warranted to bring down inflation.
- Oil prices remained volatile, pushing above $120 a barrel early in the week before easing back, as European leaders debated ways to wean themselves off Russian supplies.
- A rally in semiconductor shares led by a 10% jump in Nvidia, which announced expansion plans, helped push all three Wall Street stock indices up by 1% on Thursday.
- Bitcoin climbed above $44,000 on Thursday for the the first time in almost a month, bolstered by speculation that Russia might consider accepting the cryptocurrency for payments.
- The United States on Tuesday announced an agreement with Britain to end tariffs on steel and aluminium imports imposed by former president Donald Trump.
- The debt-ridden Chinese property developer giant Evergrande on Tuesday warned investors to "exercise caution" as it delayed the release of a 2021 audit a day after halting trade in Hong Kong. But the company says it is still on rack to announce a restructuring by July.
- The French car giant Renault said Wednesday it was immediately suspending operations at its Moscow factory after Kyiv called for a boycott of the company for remaining in Russia.
- The Swiss food giant Nestle said on Wednesday it would further scale back sales of its products in Russia, including chocolate, coffee and pet food, but would maintain baby products and foods with medicinal benefits, despite a scathing attack by Ukraine.
- Toshiba shareholders on Thursday voted against a proposal to split the Japanese conglomerate into two, dealing a fresh blow to management that will likely spell further turmoil for the embattled company.
- Apple Inc is working on a subscription service for the iPhone and other hardware products, a move that could make device ownership similar to paying a monthly app fee, Bloomberg News reported.
- The Securities and Exchange Commission will ban the use of digital assets to pay for goods and services, effective from April 1, citing concerns over financial stability, risks of cybertheft and high volatility.
- The Bank of Thailand is proposing to cap investments in digital assets by subsidiaries of commercial banks at 3% of their capital. That could affect Siam Commercial Bank's 17.85-billion-baht investment in Bitkub Online as its value exceeds the limit.
- Thailand is heading for a rare back-to-back current-account deficits as the outlook for tourist arrivals wakens and energy import bills balloon.
- The Bank of Thailand is expected to keep its policy rate at the historically low level of 0.5% throughout this year, say economists at three local commercial banks.
- The Oil Fuel Fund Office expects to obtain the first portion of loans that could eventually total 20 billion baht from commercial banks next month to replenish its nearly empty fund for subsidising fuel prices.
- The national oil and gas conglomerate PTT Plc will extend its price discounts on cooking gas for low-income people and food vendors for another three months until June 30, president and CEO Auttapol Rerkpiboon said on Wednesday.
- Seven online delivery platforms confirmed that they would not raise their delivery charges despite rising energy prices.
- The dollar value of Thai exports rose by a higher than expected 16.2% year-on-year in February from a year earlier, helped by rising global demand, the Commerce Ministry said on Thursday.
- Thailand's rice exports are expected to exceed 8 million tonnes this year, well above an earlier projection of 7 million, driven by the weakness of the baht and rising demand in the global market, according to veteran trader Chookiat Ophaswongse.
- Sugar production in Thailand, the world's third largest exporter, is heading for a three-year high after an end to two years of drought-like weather conditions improved crop prospects.
- The Commerce Ministry is upbeat about fruit export prospects, predicting the value of outbound shipments to grow by 15% this year.
- The banking system remains resilient with high capital buffers to withstand future risks and uncertainties, the Bank of Thailand said on Tuesday, a day after S&P Global Ratings downgraded top lenders citing increased systemic risks.
- The Government Savings Bank is launching a low-interest loan that does not require collateral, aiming to help low-income earners prop up their liquidity, says president Vitai Ratanakorn.
- Line Thailand is gearing up to support businesses with data management services and NFT-related solutions to drive growth for customers amid economic volatility.
- Tourism operators are increasingly resigned to the prospect of yet another quiet and loss-making Songkran, thanks to rising inflation and widespread restrictions imposed on the water festival.
- The cabinet has approved a smart city development, the fifth flagship infrastructure project in the Eastern Economic Corridor, with investment worth a combined 1.34 trillion over 10 years.
- The Transport Ministry is preparing to examine six potential locations for a southern land bridge connecting the Gulf of Thailand and Andaman coasts. They represent the latest in a long line of plans dating back four decades, none of which have materialised.
- The prices of battery electric vehicles (BEVs) eligible for government subsidies and tax incentives will be reduced by at least 150,000 to 200,000 baht per car, the Excise Department says.
Coming up: Bank of England governor Andrew Bailey will speak on Monday, and the US will release February goods trade and retail inventories. Due on Tuesday are February retail sales in Australia and Germany and US March consumer confidence.
- New Zealand will release March business confidence on Wednesday. The US will release fourth-quarter GDP, March nonfarm employment and crude oil inventories. Due on Thursday are March manufacturing PMI in China, British and Canadian fourth-quarter GDP, and euro zone and German unemployment updates.
- Japan will release the first-quarter Tankan large manufacturers and non-manufacturers index on Friday. China, Germany and Britain will release March manufacturing PMI and the euro zone will release March consumer prices. The US will release March nonfarm payrolls, unemployment and manufacturing PMI.
Stocks to watch: Asia Plus Securities recommends commodity stocks that benefit from sanctions on Russian oil supplies, including PTTEP, BANPU, NER and KSL. Firms that will benefit from reopening and easing of travel restrictions include MINT, ERW and CENTEL.
- UOB Kay Hian Securities recommends speculative buying of oil stocks such as PTTEP, BANPU and TOP, and property stocks that offer higher dividend yield such as LH, SPALI, AP, SC and ASW. Stocks with high growth potential in the second quarter are BBL, TIDLOR, CPN, OSP, TRUE, ONEE, TOP and IVL.
Technical view: UOB Kay Hian sees support at 1,660 points and resistance at 1,700. DBS Vickers Securities sees support at 1,640 and resistance at 1,700.
