Kaohoon Morning Brief – 19 July 2022

1) FSS expected SET Index to move sideways as the market lacks fresh catalysts

Finansia Syrus Securities (FSS) expected the SET Index to move sideways within 1,540-1,550 points. The energy sector should support the market after crude recovered sharply yesterday since the U.S. dollar weakened. Also, Russian Gazprom slashed gas deliveries to Europe. In general, the market still lacks fresh catalysts. Also, it is still keeping a close eye on the U.S. economic outlook. Since it will likely slow down and risk a recession next year, several large corporations, including Apple, announced they would cut jobs yesterday.

This week, investors should monitor the ECB meeting. The market expects it to raise policy rates for the first time in over a decade, while the BoJ should maintain its benchmark rates. In Thailand, the focus is still on banks’ earnings season. FSS expected the SET to recover after testing its crucial support at 1,520 points (+/-) last week. Given that, FSS recommended its investors hold, waiting for recovery. The securities company stated that it still focused on necessity-related value plays.


2) China to consider allowing homeowners to halt mortgage payment without penalty

China may allow homeowners who are boycotting their mortgages on stalled property projects to temporarily halt mortgage payments without penalization, according to the report by Bloomberg, citing people familiar with the matter.

The measure would come as a growing nationwide homebuyers’ boycott raised investor concerns about the slumping property sector in China adding to fears of banks facing hefty writedowns.


3) Twitter accuses Musk for using delay tactics to discredit its reputation

Twitter accused Tesla’s CEO Elon Musk of using delay tactics to discredit its reputation in the court of public opinion.

Musk’s attorneys stated earlier that he needed time to conduct exhaustive amounts of discovery around whether Twitter has misrepresented the amount of spam and bot accounts on its platform.

“This very public dispute harms Twitter with each passing day Musk is in breach. Musk amplifies this harm by using the Company’s own platform as a megaphone to disparage it,” wrote Twitter on its filing on Monday.