Analysts flagged potential downswings to the Thailand Stock Exchange (SET) index due to ongoing business uncertainties in Russia and mortgage defaults in China’s property market. Over the past week, the SET index experienced a seven day consecutive drop, and despite brief rallying, completed in the pink.
Concerns stemming from smaller inventory performances and information of Chinese property market default have contributed to cautious investments and total market instability resulting in enterprise uncertainty. Recent improvement saw the SET index lower by zero.49%, settling at 1,478.10 factors.
Rakpong Chaisuparakul, senior VP of KGI Securities (Thailand), suggests the pattern of ‘sideways down’ market exercise may persist as a outcome of underlying investor anxieties. These concerns, contributing to enterprise uncertainty, revolve around worldwide financial well being and the potential repercussions of major central banks’ continued rise in rates of interest. He noted the shortage of impression from China’s current fiscal stimulus on their financial scenario.
Guide (ASPS) additionally highlighted implications from the quickly resolved unrest in Russia, which still holds the potential for escalating anew. This instability and enterprise uncertainty might consequently trigger an increase in commodity prices, inflation hikes and, as a result, damage stock markets, reported Bangkok Post.
ASPS’s research note emphasised the significance of monitoring Russia’s scenario due to its vital contribution to the global commodities market, particularly as the foremost wheat exporter and tertiary oil producer in 2020. It famous that oil prices considerably elevated by 76% in a six month duration following Russia’s invasion of Ukraine early in 2022 – a surge that triggered cost-push inflation and resulted in interest rate rises.
Meanwhile, rising apprehensions round political turbulence in Russia and potential supply chain disruption have resulted in oil worth increments and enterprise uncertainty. Asian market expectations of potential additional stimulus packages from China are also supporting demand prospects.
West Texas Intermediate oil grew to nearly US$70 per barrel after a unstable session, caused by the unfolding political predicament in Russia over the weekend..