Daily Strategy: AWS Eyes MPC Rate Hike in 1Q23, Focusing on Oil and Bond-Related Stocks

Major stock markets in Asia traded mostly lower on Wednesday, following a selloff in Goldman Sachs shares after earnings missed expectations and led to a negative session in Wall Street last night.


On January 19, 2022, Thailand’s SET Index opened at 1,661.35 points, increased 1.08 points or 0.07%.

As of 10:15 local time in Thailand, Nikkei fell 1.81%, SSEC slipped 0.18%, Hang Seng Index rose 0.37%, ASX 200 dropped 0.65% and IDX Composite dipped 0.13%.

Wall Street closed lower yesterday after a disappointment in Goldman Sachs’ earnings that missed expectations while more bank earnings are up ahead. Meanwhile, the 10-year Treasury yield topped 1.87% last night.

Dow Jones closed 1.51% lower on Tuesday. S&P 500 fell 1.84% and Nasdaq plunged 2.60%. The share price of Goldman Sachs dropped 6.97% to $354.40 per share yesterday.


Asia Wealth Securities (AWS) stated that it expects the negative sentiment to continue for SET Index and move within the range of 1,650-1,680 points after yields on U.S. 2-year and 10-year treasury bonds (bond yield) rose to 1.055% and 1.884% (this morning, 19 Jan), adding weight to the Fed’s tightening monetary policy, which is scheduled for a meeting on 25-26 January. Although AWS believes that the Bank of Thailand’s monetary policy will continue to relax, the securities company expects the MPC to increase interest rates in 1Q23.

Short-term selective investment strategy remains speculative, in line with bond yields and rising crude oil prices in the short-term. AWS chooses BLA, PTTEP, PTT, SPRC, TOP, KBANK and BBL, as well as domestic play stocks that benefit from government economic stimulus measures.