Kaohoon Morning Brief – 24 June 2022

1) KTBST expects sideways trends as markets continue to assess recession fears

KTBST Securities (KTBST) expected the SET Index to move in sideways trends as concerns of recession would still weigh the market down and foreign investors would continue to withdraw from the market.

Meanwhile, the Fed’s statement also made investors want to hold on to safe assets such as bond yields or dollars. The Thai stocks had an impact from weakening Thai baht (though positive to export stocks).

The analyst recommended investors for a short-term play and lower positions in commodity stocks that gained from inflation as well as petrochemical stocks such as SCGP, SCC, PTTGC and IRPC.


2) US banks pass stress test, on pace for dividend payment

The U.S. Federal Reserve said that all banks passed annual stress tests. The nation’s 33 biggest banks have enough capital to withstand a severe economic contraction. This will allow banks to pay dividends and buy back stocks in which they will announce their plans for dividends and buybacks on Monday.


3) US PMI falls to 52.4, lowest in two years

The U.S. Manufacturing PMI fell to 52.4 in June 2022 from 57 in May, and 56.0 expected. The figure in June is the lowest reading since July 2020 as contractions in output and new orders weighed. Meanwhile, composite PMI fell to 51.2 vs. 52.9 expected.

Both new orders (down from 56.1 to 48.4) and output (down from 55.2 to 49.6) contracted in June for the first time in roughly two years.