Daily Strategy: CNS Eyes CCSA’s Measures Evaluation and Fed Policy Next Week

Major stock markets in Asia traded in a mixed session on Thursday as China PBOC announced a lending rates cut for the second consecutive month this morning.

Thailand’s SET Index opened at 1,663.37 points, increased 5.13 points or 0.31%.

As of 10:15 local time in Thailand on January 20, 2022, Nikkei rose 0.46%, SSEC fell 0.24%, Hang Seng Index gained 1.96%, ASX 200 slipped 0.11% and IDX Composite increased 0.36%.

Earlier this morning, China’s central bank cut its benchmark lending rates for the second consecutive month in a response to the economic slowdown for the world’s second-largest economy. The 1-year loan prime rate was cut from 3.85% to 3.7%. Meanwhile, the five-year loan prime rate was reduced by 5 basis points from 4.65% to 4.6%.


Mr. Koraphat Vorachet, Capital Nomura Securities’ (CNS) strategist, through “Kaohoon Jor Talad Program” on January 20, 2022, stated that the market is speculating on the measurement adjusting from the Centre for COVID-19 Situation Administration (CCSA) due to rise in Covid-19 cases, while the U.S. 10-year bond yield is slowing down to around 1.85%. The market is also focusing on the Fed’s meeting next week for any hint of its balance sheet reduction plan.

Mr. Vorachet expected the SET Index to move sideways or sideways down, giving a support level at 1,645 points and a resistance level at 1,664-1,672 points.