Major stock markets traded in a mixed session on Thursday as traders monitored the development of Covid-19 situation while the U.S. inflation data came out in line with expectations.
On January 13, 2022, Thailand’s SET Index opened at 1,681.10 points, increased 2.60 points or 0.15%.
As of 10:08 local time in Thailand, Nikkei dropped 0.86%, SSEC fell 0.17%, Hang Seng Index gained 0.40%, ASX 200 increased 0.64% and IDX Composite slipped 0.095%.
U.S. consumer prices in December rose to the level not seen in 40 years as rental accommodation and used cars remained solid, pushing inflation to 7%.
Meanwhile, the World Health Organization stated that the global infections of Covid-19 rose to a weekly-record high on the previous week as a record of 15 million new-Covid cases were reported amid the spread of Covid-19 omicron variant.
Mr. Koraphat Vorachet, Capital Nomura Securities’ strategist, through “Kaohoon Jor Talad Program” on January 13, 2022, expected the Thai stock market to move sideways to sideways-up, giving a support level at 1,686 1,693 points and a resistance level at 1,660 points.
Mr. Vorachet stated that the U.S. inflation data, though at a 40-year high, was in accordance with expectations while traders are pricing in rate hikes. As for Thailand, the strategist recommended investors to monitor the development of the Covid situation.
Mr. Vorachet expected the energy sector to continue on the upside, recommending mid and down-stream stocks such as Thai Oil Public Company Limited (SET: TOP) and Indorama Ventures Public Company Limited (SET: IVL). Meanwhile, Khon Kaen Sugar Industry Public Company Limited (SET: KSL) would benefit from food prices. Bangkok Life Assurance Public Company Limited (SET: BLA) would benefit from an uptrend on interest rate and bond yields.
