Kaohoon Morning Brief – 15 August 2022

1) FSS recommends short speculation, seeing limited upside for SET Index

Finansia Syrus Securities (FSS) expected the Thai stock market to move in sideway-up trends, following a positive direction from easing tension for U.S. inflation that had passed its peak that could result in fund flow to return to risk assets, giving a strong resistance level at 1,630 points and advised investors to monitor Thailand’s 2Q22 economic growth scheduled to be released today.

FSS stated that it still liked domestic and reopening plays that should receive positive sentiment from the economic recovery and reopening. However, SET Index 7% from its low last month, which could limit its upside to FSS’ target at 1,670 points. Thus, the securities company recommended investors for short speculation, especially after seeing a slowdown in foreign flows and short on long-term futures.


2) Thailand 2Q22 economic growth missed expectations, rising 2.5% YoY

Thailand’s economy grew slower than expected in the second quarter of 2022 as the economy started to pick up from a full lift of Covid-19 restrictions in July, which is in the third quarter.

The annualized Gross Domestic Product grew 2.5% in 2Q22, missing expectations of 2.8% by Reuters Poll, but better than the first quarter of 2022 at 2.2%. Meanwhile, the economy grew 2.4% in the first half of 2022.


3) Japan 2Q22 GDP missed expectations with 2.2% growth

Japan, the world’s third-largest economy saw its gross domestic product (GDP) grow by an annualized 2.2% in the second quarter, a significant increase from the revised 0.1% growth seen in the first three months of the year. It was smaller than the median market forecast for a 2.5% increase. The figure was lower than the median market expectation of a 2.5% rise.


4) China consumer and factory data missed expectations in July

China retail sales increased by 2.7% in July from the same period of last year, which was lower than a 5% forecast by a Reuters Poll and 3.1% growth in June. Catering, furniture and construction-related categories saw declines in July.

Meanwhile, industrial production rose by 3.8%, also missing expectations of 4.6% growth and plunged from 3.9% increase in June.