Page 77 - BTSGroup ONE REPORT 2021/22_EN

BTS Group Holdings Public Company Limited 4.1 Capital Markets Review and IR Activities 75
Annual Report 2021/22

the Thai government ordered tightened measures to contain the outbreak, greatly 3Q 2021/22 (from October to December 2021) began with negative sentiment,
reducing ridership across all transportation means, resulting in a decline in triggering anxieties over equity markets across the globe. Firstly, WHO
BTS share price. However, BTS share price rebounded to its quarter peak at designated the latest Omicron as a variant of concern as it casts doubt on
THB 9.80 on 11 June 2021, the same day that UTA International Aviation the available vaccine efficacy. In addition, the FED announced in its December
Company Limited (our associate with BTS Group shareholding of 35%) meeting that it would end quantitative easing by the first quarter of 2022,
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submitted the masterplan of U-Tapao International Airport and Eastern Airport City paving the ways for additional interest rate hikes by the end of 2022 . Despite
to the Eastern Economic Corridor Office. Meanwhile, the SET Index was trading the mounting concerns, the SET Index moved in contrary to other global indices
sideways, ending the period square despite the strong rally (approximately by virtue of the announcement from the Thai government that it may extend
14.6%) in the quarter. At the end of the period, BTS share price contracted the country’s debt ceiling. This also helped ease concerns within the financial
by 3.1%, underperforming the SET Index but outperforming the SETTRANS Index services sector as the downward trend in the interest rate would lessen tension
which moved 0.04% and -5.5%, respectively. in the highly competitive personal loan business. BTS share price continued
to trade sideways, ending the quarter contracting 0.5% while the SET Index
The downward trend in BTS share price continued in 2Q 2021/22 (from July to advanced by 3.23% and the SETTRANS Index declined by 1.6%.
September 2021) before recovering, ending the period with a subdued growth
of 0.5%. The outbreak of the Delta variant became intense in late June 2021 In the 4Q 2021/22 (from January to March 2022), the world was disrupted by
evident in the resurgence of infection cases which peaked at of over 20,000 the Russian invasion of Ukraine. The global equity markets were pressured by
cases per day. Consequently, the Thai government announced the fourth the rising concerns on the geopolitical tension between Russia and other
wave of the COVID-19 and placed stricter preventive measures, including parties, including the United States and NATO. Even though, the financial
Bangkok lockdown and travel restrictions. In August 2021, the share price linkages between Russia and the rest of the world are limited , MSCI World fell
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corrected as much as 13%, shrinking to its year low at THB 8.40 while the SET 5.5% with the trough of 13.4% from the beginning of the quarter. In addition,
Index also suffered leading to its year low at 1,522 points. Despite negative the FED approved a 0.25% rate hike, the first time increase since 2018, followed
sentiments, BTS share price bounced back, after the announcement of by other rate hikes in the subsequent six meetings. Nevertheless, The SET
the company’s financial performance of 1Q 2021/22 indicating a robust growth Index rose 2.3% in the quarter, driven by internal factors: improving vaccination
in recurring net profit of 121% YoY. By the end of the quarter, there were rate and increased incoming tourists from the country’s reopening. Moreover,
significant developments in the vaccination rate in Thailand leading the Centre there were significant net buys from Foreign Investors (THB 10bn) while Local
for COVID-19 Situation Administration (CCSA) to alleviate measures, allowing Institutes and Local Investors took a profit. Both the SET Index and the SETTRANS
most businesses in the dark red zone area to resume normal operations. Index outperformed the BTS share price throughout the quarter. BTS share
During the same period, the SET Index rose slightly by 0.7% in a range of started off the quarter at THB 9.35 and closed at THB 9.20, contracting 1.6%, with
1,594 to 1,606 points. BTS share price and the overall capital markets reacted a trading range between THB 8.90 to THB 10.20, ending the quarter.
positively surpassing their troughs in August and reaching their peak by
the end of the quarter. BTS share price ended the period with a slight increase SET Index Performance
of 0.5%, underperformed the SET Index but outperformed the SETTRANS
Index which moved 1.1% and -1.9%, respectively. The SET Index rose 6.8% in FY 2021/22, chiefly driven by net buy from
Foreign Investors (THB 75.0bn), Local Investors (THB 43.3bn) and Proprietary
Trading (THB 11.0bn) with combined values of THB 129.3bn. On the contrary,

3 CNBC - The Federal Reserve is expected to raise rates, but unique challenges could slow its pace Local institutions was a net seller of the same combined values across
4 J.P. Morgan Research - The Russia-Ukraine Crisis: What Does It Mean For Markets? the 12-month period.