Kaohoon Morning Brief – 20 June 2022

1) FSS expects SET Index to fluctuate, seeing recovery in 2H from full reopening

Finansia Syrus Securities (FSS) expected the SET Index to fluctuate in today’s trading session within 1,545-1,570 points in concerns of rising inflation. FSS stated that there could be a technical rebound in the short-term after a plummet last week and the RSI pointed to an oversold territory.

Still, FSS expected the recovery will be limited, pressured by monetary policy from global central banks amid potential slowing down economy. The up-stream energy and refinery stocks should continue to weigh the market down, following a fall in global crude oil around 7%, but should benefit power generation, petrochemical and construction material stocks to outperform the market.

In addition, FSS stated that it was positive toward the recovery in Thai economy to accelerate in the second half of this year after the full reopening.


2) China keeps benchmark lending rate unchanged amid global central banks tightening

The Chinese government kept one-year and five-year loan prime rates unchanged at 3.70% and 4.45%, respectively, which is in line with the majority forecast from economists and the market’s expectations as global central bank tightening limits room for policy measures to calm an economic slowdown.


3) Biden plans to talk with Xi Jinping on lifting trade tariffs

The U.S. President Joe Biden said that he plans to talk to Chinese leader Xi Jinping soon as he is considering lifting some tariffs on Chinese goods imposed by the former president Donald Trump.

The U.S. president did not specify the date for this call, but said that he was getting closer to a decision about the fate of the economic penalties.


4) Bitcoin briefly falls below $18,000 on Saturday

The selloff in the cryptocurrency market continued on the weekend as Bitcoin briefly fell to  $17,749 on Saturday but bounced back to close around $18,955. Last time that Bitcoin was trading at this lower level was in December 2020. Bitcoin is now 71% from its peak at $68,789 in November.