Major stock markets in Asia traded higher, following a surge in Wall Street over the night and a drop in oil prices.
As of 10:13 local time in Thailand, Nikkei jumped 3.84%, SSEC increased 1.87%, Hang Seng Index rose 1.70%, ASX 200 gained 1.41% and IDX Composite advanced 0.043%.
Thailand’s SET Index opened at 1,654.26 points, increased 10.62 or 0.65%.
Oil prices finally slowed down on Wednesday, dropping more than 12% amid reports of an increase in oil output by Iraq, according to Reuters. The U.S. also signaled that UAE would support increased production if OPEC+ approve.
Mr. Koraphat Vorachet, Capital Nomura Securities’ strategist, through “Kaohoon Jor Talad Program” on March 10, 2022, stated that the overall outlook of unrest in Ukraine is more relaxed, but negativity still remained. Nevertheless, he expected the Thai stock market to rebound, giving a support level at 1,630-1,624 points and a resistance level at 1,655-,1,664 points.
Mr. Vorachet stated that even with a drop of oil price overnight, it is still considerably high, and there is a chance for the price to remain high, given the uncertainty of Ukraine and Russia.
PTT Exploration and Production Public Company Limited (SET: PTTEP) has been benefiting from rising oil prices as of late, and CNS’ strategist noted that there could be an impact on PTTEP, but the stock still has good earnings this quarter and next, while oil prices should remain above $100 a barrel for a while.
