The Thai stock market cut down its loss in late afternoon on Tuesday to only 0.28% or 21 points after falling more than 1.2% in the early session in concerns of the escalating tensions between Russia and Ukraine.
As of 15:34 local time in Thailand on February 22, 2022, SET Index was at 1,689.65 points, decreased 4.67 points or 0.28% with a trading value of 73.7 billion baht. The recovery occurred in the afternoon session around 3 p.m. which could be a buying pressure from foreign investors.
Russian President Vladimir Putin announced Monday evening that he would recognize the independence of two breakaway regions of eastern Ukraine while ordering his troops to advance into the two regions to “keep the peace”.
The advancement could and could not be considered an invasion of Ukraine as the two regions were already controlled by Russian-backed separatists and Moscow in practice.
Countries are stepping up to sanction Russia after the Kremlin marched into breakaway regions in Ukraine. The Biden Administration is planning to issue an executive order that will prohibit new investment, trade and financing in the two regions that have been recognized by Russia as independent. Canadian Prime Minister Justin Trudeau said that Canada will impose sanctions on Russia, while Japan is joining the U.S. in a chip export sanction against Russia. The UK government says they will announce sanctions for Russia as well.
Credit Suisse wrote in its latest research last week, pointing out to EPS revision momentum, most promising currency, booming consumption from exports, while the market is resilient to the Fed’s rate hike will be positive factors for the Thai stock market. Moreover, Credit Suisse indicated that there are signs that investors are treating Asean as a single asset class, which typically leads to buy-in of Thailand as the most liquid market in the region.
