Kaohoon Morning Brief – 7 October 2022

1) FSS expects SET Index to slowdown from three-day winning streak

Finansia Syrus Securities (FSS) expected the Thai stock market to move in sideways trends within the range of 1,580-1,600 points, slowing down from a three-day winning streak. The US bond yield bounced back to put pressure on risk assets.

The analyst recommended investors to monitor the U.S. nonfarm payroll report later today to speculate economic trends as well as inflation data scheduled to report next week.

Overall, the analyst said that the market still lacks positive drivers.


2) Economists expect US labour market to ease in September

Investors are looking ahead to the U.S. nonfarm payroll for September scheduled to release later today.

Consensus of economists expect the job report to increase 250,000 in September, a sharp decline from 315,000 a month ago, while the unemployment rate held at 3.7%.

However, if the labour market came in stronger than expected or even higher than the data in August, that could put the Federal Reserve in a more aggressive stance to raise interest rates in November and December this year.


3) Moody’s Investors Service expected Credit Suisse to record $3 billion of losses by the end of this year, potentially bringing its core capital below the key 13% level.

The Swiss bank reported a loss of 1.9 billion francs ($1.92 billion) for its financial statement in the first half of 2022.


4) KKP Securities says financial stocks to further decline

Kiatnakin Phatra Securities expected financial stocks to further decline from collapsing yield, lower gearing, peaking scale, and rising regulatory cost.

Apart from the valuation de-rating on lower RoE, valuation should decline further on higher required rate of return