Tuesday, April 13News That Matters

Outbreak causes SET jitters, however rubber gloves soar

A security guard outside a bar located in Covid-19 stricken Thong Lor. (Photo by Somchai Poomlard)
A security guard outside a bar located in Covid-19 stricken Thong Lor. (Checklist by Somchai Poomlard)

A contemporary spherical of Covid-19 infections in Bangkok has sparked fears of a prolonged lockdown, causing the SET Index to fall 1.46% or by 23.10 components, closing at 1,556.56 components in alternate price 108 billion baht on Wednesday, propelling traders in opposition to stable-haven sources take care of gold.

Nonetheless, Asia Plus Securities executive vice-president Therdsak Taveeteeratham mentioned the authorities would now not exclaim a curfew. The brokerage expects authorities to govern the insist.

Mongkol Puangpetra, executive vice-president of KTBST Securities (Thailand), mentioned despite the surge of infections in Bangkok, the metropolis’s governor has already issued several measures to govern the zones with high infections.

Mr Mongkol believes the measures should be ample to forestall a novel outbreak. Nonetheless, if the outbreak grows out of seize a watch on, there is a probability the authorities will impose a curfew, he mentioned.

“I ponder the light measures to curb the outbreak are ample with out declaring a curfew. The outbreak in Samut Sakhon was also quite severe, however the authorities was capable of administer it. Moreover, providing vaccines to of us in high-risk areas will also succor decelerate the unfold,” mentioned Mr Mongkol.

For the length of every spherical of outbreaks, the inventory prices of Sri Trang Gloves (Thailand) (STGT), Thailand’s largest rubber glove producer, and its parent firm Sri Trang Agro (STA) incessantly rally. Inventory prices of tourism-associated corporations equivalent to airways and accommodations fall.

“The inventory market falls for a short length straight away after news of a plague is printed,” he mentioned.

“Nonetheless, when the authorities publicizes sure seize a watch on measures, the market will soar aid.”

Mr Therdsak mentioned the authorities would now not exclaim a curfew as the insist is now not yet severe. As a substitute, he expects the authorities to power closures in some areas the attach infections were chanced on.

Trinity Securities’ study acknowledged STGT and STA will earn pleasure from the novel surge in infections as both shares believe several constructive components supporting their prices.

They’re anticipated to report stable performances within the principle quarter this 12 months and can simply be added to the SET50 Index within the subsequent spherical of fashion, mentioned the study.

Trinity initiatives STGT and STA’s dividend payments will upward push to 4.8% and 3.7% respectively, with both shares to be marked with an XD (as hostile to dividend) on April 12, 2021.

Shares of STGT rose 2.75% to conclude at 44.75 baht in alternate price 5.04 billion baht on Wednesday, while STA rose 4.79% in alternate price 3.9 billion.

Airports of Thailand (AOT) dropped 3.66% in alternate cost price 2 billion baht.

Meanwhile, worldwide gold prices reached an intra-week high on Monday in consequence of an enhance of the 2021 worldwide GDP forecast to 6%, up from 5.5%, while the 2022 outlook is 4.4% growth, up from 4.2%. Both figures were revised following the weakening of the buck and a decline within the 10-12 months US authorities bond yield curve.

Moreover, the native gold bullion rob and sale prices announced by the Gold Merchants Association rose rather to 25,650 and 25,750 baht, respectively, from 25,600 and 25,700 baht on Monday.

Hua Seng Heng Neighborhood mentioned some revenue-making sales would per chance per chance well also lead to cost corrections in worldwide gold prices.

The toughen traces for worldwide gold prices are for the time being at US$1,730 (54,250 baht) per 28 grammes and $1,720, while the resistance traces are at $1,750 and $1,755.

The market cap for cryptocurrencies surpassed $2 trillion for the principle time on Monday, spurred by inquire of from retail traders and corporates for the novel asset to hedge against inflation.

Ethereum, the sector’s 2nd largest cryptocurrency, hit a novel report at $2,140 on Monday, followed by a correction. Bitcoin climbed to about $58,000, however did now not surpass the $60,000 sign and ruin its outdated report of $61,200 closing month.

The Securities and Swap Commission (SEC) accepted Bitkub, the ideal native digital alternate, resuming its utility process for novel customers from 9am. The SEC chanced on the alternate made several adjustments to its gadget in compliance with its orders.

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