Kaohoon Morning Brief – 8 July 2022

1) FSS expects short-term inflow to return to risk assets

Finansia Syrus Securities (FSS) expected the SET to move sideways-to-sideways up within 1,550-1,575 points as short-term funds continue flowing back into risk assets. However, it would be less than yesterday. Today, investors should keep an eye on U.S. employment data for June. It is due tonight. Also, the U.S. inflation will be out next week. Crude recovered above US$100 a barrel again due to tight supply concerns, while U.S. bond yield increased above 3%, resulting in a stubborn inverted yield curve. It reflected recession concerns for 2023. Thus, FSS generally viewed it as a rebound.

Although the SET  is yet to return to its mid-to-long-term upward cycle, FSS still believed it will outperform its peers in other regions due to its accelerating economic outlook, in line with the reopening. If it falls, its crucial support at 1,500- 1,520 (+/-) will  present an opportunity for accumulation. In this regard, FSS still focused on investing in necessity-related value plays and reopening stocks


2) UK Prime Minister Boris Johnson resigns as prime minister

The UK Prime Minister Boris Johnson has announced on Thursday that he will resign from the position of the Prime Minister of the United Kingdom.

“The process of choosing that new leader should begin now,” said Johnson outside Downing Street. “And today I have appointed a cabinet to serve, as I will until a new leader is in place,” he added.


3) GameStop sacks CFO and announces layoffs for turnaround strategic plan

GameStop fired its Chief Financial Officer, Mike Recupero, and announced layoffs across departments as part of its turnaround plan. The cuts were on the corporate side of the company rather than at its stores.

The company has been suffering from the videogame business that the majority has moved online.


4) More Americans file for unemployment benefits

235,000 Americans filed for unemployment benefits for the week ending July 2, 2022. The claims were up 4,000 from the previous week, according to the data from the Labor Department reported on Thursday.

Earlier, the Labor Department stated that U.S. employers advertised fewer jobs in May amid signs that the economy is weakening, especially that recession is looming, though the overall demand for workers remained strong.