Local actions rally to new peace talks

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Local actions rally to new peace talks

Transaction tax deferral also boosts morale

Thai stocks rallied on Wednesday after progress in peace talks between Russia and Ukraine raised hopes of a resolution and the Finance Ministry‘s decision to postpone the imposition of a tax on transactions to individual investors boosted investor morale.

The SET index joined a global rally and hit 1,700 points after Russia announced plans to scale back military operations in and around Kyiv.

The spot gold price fell to US$1,890 an ounce before rebounding, while the price of WTI crude oil fell 1.6% to $104.24 a barrel in response to the news, although it remains high due to tight supply.

YLG Bullion International said gold prices could stay above $1,907 an ounce after falling to $1,890 an ounce the day before. The next resistance range is $1,932-1,948 per ounce, the firm said.

SPDR, the world’s largest gold fund, reportedly offloaded 1.74 tonnes of gold, while the US dollar index also slipped yesterday as funds moved into riskier assets.

The Bank of Thailand kept the key interest rate at 0.5% and cut its forecast for economic growth from 3.4% to 3.2%.

According to an analyst at Krungsri Securities, headline inflation in Thailand, which hit 5.28% in February, is not yet a concern and will remain high for a short time.

The baht strengthened to 33.5 baht to the dollar yesterday after foreigners returned to Thai bonds with a net purchase of 1.17 billion baht.

Along with the progress of the peace talks, investors also welcomed the Finance Ministry’s decision to postpone the collection of taxes on stock transactions, returning to risky assets such as stocks.

Bitcoin stood at 1,579,998 baht per unit, or $47,384 as of 2:20 p.m. yesterday, up about 11% over the past week.

For the investment strategy, an analyst from Krungsri Securities recommended companies that will benefit from lower oil prices, including Global Power Synergy (GPSC), B.Grimm Power (BGRIM), SCG Packaging (SCGP), Siam Cement (SCC) and Eastern Polymer Group (EPG).

The brokerage also recommended investing in stocks that stand to benefit from the easing of Covid control measures such as Airports of Thailand (AOT), Asia Aviation (AAV), Bangkok Airways (BA), Minor International ( MINT), Central Plaza Hotel (CENTEL), Erawan Group (ERW), Bumrungrad Hospital (BH) and Bangkok Dusit Medical Services (BDMS).

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