Kaohoon Morning Brief – 25 August 2022

1) FSS expects the energy sector to support market on higher energy prices

FInansia Syrus Securities (FSS) expected the SET to move sideways within 1,620-1,640 points. Energy should support the market due to higher energy prices. In the short run, the market still lacks fresh catalysts. Its crucial factor remains the Fed chair’s statement at the Jackson Hole Symposium if it would signal continued tightening or not. In Thailand, the Charter Court suspended the Prime Minister from duty after accepting a review of a petition over his eight-year term limit. Although it affects the government’s stability, its short-term impacts should be modest.

FSS still thinks that the supporting factor for the Thai equity market remains fund inflows, in line with the rising economic outlook in Thailand. It breaks rank from other regions, which are slowing down and risks recession. FSS maintained itsmid-to-long-term bullish view of domestic and reopening plays and recommended its investors repurchase them on weakness to 1,600 points (+/-). Also, FSS stated that it still believes that the SET will climb in 2H22-2023.


2) Hong Kong suspends morning session over warning of tropical storm Ma-on

The trading of Hong Kong’s stock market in the morning session was canceled due to the issuance of a warning of tropical storm Ma-on. The afternoon session will begin on time at 1 p.m. in accordance to its rules, Hong Kong Exchanges & Clearing Ltd. said.

The Hong Kong Observatory lowered its storm warning to signal No. 3 from No. 8 as it will consider canceling all warnings depending on how much winds subside.


3) South Korea central bank raises interest rate by 0.25bps

South Korea’s central bank raised its key interest rate by a quarter-percentage point on Thursday in an attempt to curb inflation and prevent capital outflows as the U.S. central bank is expected to continue increasing its policy rates to address its 40-year high inflation.

After the increase by the Bank of Korea, its key rate will sit at 2.50%. The central bank upgraded its inflation forecast for 2022 to 5.2% from 4.5% and also cut its economic growth forecast to 2.6% this year from 2.7% previously.