1) Thai stock market overview
Thailand’s SET Index closed at 1,631.92 points, decreased 14.16 points or 0.86% with a trading value of 62 billion baht. The analyst stated that the decline in SET Index was due to concerns on the overall Thai economic outlook and directions of monetary policy after inflation in May accelerated to 7.1%.
The analyst expected the Thai stock market to continue edging lower tomorrow due to inflation fears globally and without new positive factors to drive the market, giving a support level at 1,620-1,615 points and a resistance level at 1,635 points.
2) Maybank upgrades Tourism sector to Positive on improving outlook
Maybank Securities (Thailand) (MST) upgraded its sector view toward Thailand’s tourism from Neutral to POSITIVE, as the sector expects tourist arrivals to continue to rebound in 2022-24, with AOT (TP: THB80.00) and MINT (TP: THB42.00) rated as Top Picks stocks.
In April, the number of tourists visiting Thailand increased by 39 percent month-over-month to 293,350. MST believes May arrivals would reach between 400,000 and 500,000, and the accelerating trend could continue through the end of the year, with international arrivals reaching 1 million per month in the fourth quarter of 2022, according to TAT’s projections.
3) Japanese yen sinks to 20-year low on interest rate gap concerns
Overnight weakness in the Japanese yen continued into Tuesday’s trading, pushing it to a fresh 20-year low amid speculation that the interest rate gap between Japan and the United States will widen.
The yen fell in the upper 132 zone against the U.S. dollar. As of 14.28 hrs. local time in Thailand, the Japanese currency was traded at around 132.73 against the dollar.
According to market analysts, the value of the yen dropped sharply due to concerns that the U.S. Federal Reserve (Fed) will keep tightening monetary policy.
4) Australia central bank makes a hawkish move by raising interest rate by 50bps
Australia’s central bank on Tuesday raised its policy rates by 50 basis points, the most in 22 years, to 0.85% to combat surging inflation. The hike was higher than the market expectations of a 25 basis point rise.
The lift came after the central bank had hiked its interest rates by a quarter point in May, marking the first rate hike since 2010.
