Kaohoon Morning Brief – 25 November 2022

1) FSS expects weak trading volume with US market closed on Thanksgiving

Finansia Syrus Securities (FSS) expected the SET to move sideways within 1,620-1,630 points. The trading volume should remain weak since the market lacks support from fresh catalysts. In particular, U.S. equity markets were closed last night to observe Thanksgiving. However, the Dollar Index and U.S. bond yields extended their losses to reflect the prospect that the pace of the Fed’s rate hikes would slow. It would support risk assets in the short run. Crude prices steadied after tumbling the previous day. It should help future inflation ease and provide a bullish sentiment for anti-commodity, such as power. Also, there should be support from the Baht strength and a meeting on 5,203-MW renewable power plants. In China, investors should keep a close eye on the covid situation after a continued surge in new cases, which may result in a slower-than-expected reopening. On the domestic front, monitor the exports for October and the MPC meeting next week. FSS still anticipated mid-to-long-term fund inflows due to the accelerating economic outlook in 4Q22-2023.


2) Turkey’s central bank cuts rate by 150bps and end its cycle of easing policy

Turkey’s central bank cut interest rates by 150 basis points to 9% despite soaring inflation that remained above 85% year-on-year in October due to food and energy prices that continued to soar.

The Central Bank of the Republic of Turkey on Thursday also announced the end of its cycle of monetary policy easing, citing increased inflation risks.

“Considering the increasing risks regarding global demand, the Committee evaluated that the current policy rate is adequate and decided to end the rate cut cycle that started in August,” the central bank wrote in a statement.


3) Binance injects $1 billion to keep crypto industry afloat in a wake of FTX collapse

Cryptocurrency exchange Binance announced that it will deploy $1 billion in initial commitments to the recovery fund, aiming to keep the crypto industry afloat in the wake of the FTX disaster.

The exchange wrote in a blogpost, stating that the amount could increase to $2 billion in the future if needed. It has also received $50 million in commitments from Jump Crypto, Polygon Ventures, and Animoca Brands.