Kaohoon Morning Brief – 19 October 2022

1) FSS expects SET Index to test 1,600 level as spotlight shines on 3Q22 earrings

Finansia Syrus Securities (FSS) expected the SET to move sideways up to test the 1,600 level again. The sentiment remains relaxed. Although there is no fresh catalyst, short-term funds extended their inflows into risk assets after plummeting in the past 1-2 months. Hence, the spotlight is on the 3Q22 earnings season at the moment. In the latest news, Netflix reported an above-estimate profit. It supports the sentiment to be bullish. In Thailand, most banks will deliver their results in the remaining week, followed by more earnings previews from the real sector. Generally, FSS viewed 3Q22 as unexciting since the rainy season is a low season. Hence, investors should be selective.

However, FSS maintained its bullish view of domestic and reopening plays in 4Q22 when tourism and spending resume their high season. Also, the economy should accelerate in 2023. It would diverge from the West, which risks a recession.


2) Netflix’s subscribers in 3Q beat expectations, shares rise 14% after hours

Netflix added 2.41 million net subscribers during 3Q22, higher than the 1 million it had forecast after missing the target in the second quarter this year.

3Q22 earnings per share was $3.10 vs $2.13 expected, while revenue in the quarter recorded at $7.93 billion vs $7.84 billion expected.

Starting next quarter, Netflix will no longer provide guidance for its subscription target.

The share price of Netflix (Nasdaq: NFLX) rose 14.3% after-market after the announcement of its 3Q performance that beat expectations.


3) US used car prices drop to 2009 level

U.S. used car prices, the leading indicator of higher inflation rates in 2020, are now down 10% over the past year, representing the largest decline on record as data is going back to 2009 level.

The decline in used car prices could signal for a lower level of inflation rates in the U.S.

Prices of used cars skyrocketed during the pandemic, especially in 2021, as automakers faced ongoing supply-chain disruptions and a shortage of semiconductor chips.


4) Hong Kong aims to lift Covid restrictions from next Thursday

Hong Kong is set to remove more Covid-19 restrictions from next Thursday as the city is moving to focus on reviving its credentials as an international business hub.

Hong Kong leader John Lee will deliver his inaugural policy address later today.

The lift will allow live performances and dancing to take place indoors.