Kaohoon Morning Brief – 10 November 2022

1) FSS expects SET Index to move sideways down amid bearish sentiment from US

Finansia Syrus Securities (FSS) expected the SET Index to extend its sideways-down movement in the short run. It should move within 1,610-1,625 points due to the bearish sentiment from the U.S., where the midterm election results remain uncertain. In particular, which party will have the majority in the Senate. Although the Republicans may have the majority in the lower House, the number of seats would be lower than expected. Also, the market would see short-term pressure from volatility in the crypto market after the world’s second-largest web trader platform, FTX, may go bankrupt. Since the U.S. CPI is due tonight, the market remains cautious. So far, the 3Q22 earnings results have been unexciting. In particular, most big-cap stocks in the energy sector posted below-estimate earnings. Hence, the SET’s recovery remains limited.

FSS still recommended that its investors place selective bets on stocks with above-estimate 3Q22 profit and a sustained healthy 4Q22 earnings outlook. Also, big-cap stocks should perform well, supported by fund inflows. In this regard, its focus is still on reopening and domestic plays.


2) Binance backed off from FTX acquisition

Binance announced that it will not go through with the plan to acquire crypto exchange FTX. The announcement came just one day after Binance CEO Changpeng Zhao announced that the firm had reached a non-binding deal to buy FTX’s non-U.S. businesses for an undisclosed amount as the latter was facing a liquidity crisis.

FTX Chief Executive Officer Sam Bankman-Fried is reportedly looking at all options available to avoid the collapse after Binance walking away.


3) Bitcoin plunges to two-year low

Bitcoin’s price plunged to its lowest level in two years after the announcement of Binance scrapping the acquisition in FTX. The price of the world’s largest cryptocurrency traded as low as $15,625 on Wednesday. The price was down 14% for the day, representing its biggest loss in nearly five months.