SET market report for May 2022

Spiraling inflation concerns compel several central banks to become more hawkish to control inflation as China’s economy slows down grappled by the stringent lockdown measures to contain the COVID-19 pandemic, particularly in Shanghai.

The double whammy deepens global recession risk, resulting in correction in multiple asset classes across the world. However, analysts from several institutions started to be optimistic that global inflation is just shy of its peak and set to be tamed in the near future, while China’s Purchasing Managers Index (PMI) turned to expand in May and the mainland lockdown measures tend to be relaxed in June following the decline in infections.

These factors suggest possibilities of investment returns to stock markets, signaling by foreign investors flocking to ASEAN stock markets. SET Senior Executive Vice President Soraphol Tulayasathien said that in…