Kaohoon Morning Brief – 4 July 2022

1) KSS expects limited range movement in SET Index, pressured by rate hikes and recession fears

Krungsri Securities (KSS) expected SET Index to move within the 1,565 – 1,580 range. Even though the market would receive a positive sentiment from the overall outlook in the regional market, concerns of aggressive rate hike and recession risks after the US PMI for June dropped to its lowest in nearly two years, resulting in inflow slowing down. The analyst recommended investors to pick stocks with unique positive drivers.


2) ADVANC to acquire TTTBB and JASIF from JAS for THB32,420 million

Advanced Info Service Public Company Limited (SET: ADVANC) has announced that it will acquire 99.87% stake in Triple T Broadband Public Company Limited (TTTBB) from Jasmine

International Public Company Limited (SET: JAS) and 19.00% stake in Jasmine Broadband Internet Infrastructure Fund (SET: JASIF) from JAS as well in a total investment amount of 32,420 million baht.

The acquisition is to grow the broadband business and effectively develop the nation’s fiber infrastructure.


3) JPMorgan expects crude oil to reach $380/bbl in a worst case scenario

JPMorgan expected global oil prices to reach a ‘stratospheric’ $380 a barrel in a worst case scenario if the U.S. and European penalties prompt Russia to retaliate by cutting crude output.

The analysts stated that due to Moscow’s robust fiscal position, it could afford to slash daily crude production by 5 million barrels without excessively damaging the economy.


4) US GDPNow pointing to -2.1% in 2Q, indicating a recession

The Atlanta Fed GDPNow model estimate for real GDP growth in the second quarter of 2022 is now expecting a contraction of 2.1%, indicating that the economy may have fallen into a recession in 2Q.