Major stock markets in Asia traded mostly higher on Wednesday as China’s inflation in April topped expectations at 8%.
As of 10:10 local time in Thailand on May 11, 2022, Nikkei rose 0.32%, SSEC gained 1.44%, Hang Seng Index increased 1.24%, ASX 200 dipped 0.17% and IDX Composite added 0.87%.
Thailand’s SET Index opened at 1,618.96 points, decreased 3.82 points or 0.24%.
China’s producer price index for April rose 8% YoY, according to the data released by the Bureau of Statistics early Wednesday. The figure was higher than expectations for a 7.7% increase by a Reuters poll.
Mr. Chaiyot Jiwangkul, Assistant Director of Krungsri Securities (KSS), through “Kaohoon Jor Talad Program” on May 11, 2022, stated that the technical rebound in SET Index yesterday was due to an overall positive sentiment in the global market, coupled with a short covering. However, the market still lacks new positive factors to drive the market and inflation and aggressive rate hike fears still remain.
As for the U.S. inflation, Mr. Jiwangkul stated that if the reading came out at 8% or slightly above, the market could react in a slight positive direction. However, a reading below 8% could have a huge positive impact on the market.
Mr. Jiwangkul recommended Thai Union Public Company Limited (SET: TU), saying that the 1Q22 earnings were better-than-expected, while seeing upside to the target price of THB22.20 per share as the current share price is trading at a lower level. 2Q and 3Q22 would be TU’s peak season, boosted by baht depreciation.
