Kaohoon Morning Brief – 2 December 2022

1) FSS maintains bullish after SET Index broke resistance at 1,640 points

Finansia Syrus Securities (FSS) expected the SET Index to move sideways within 1,640-1,655 points. Technically, the outlook remains bullish after the index broke its short-term resistance at 1,640 points. However, the heat should decrease as the market waits for U.S. non-farm payrolls for November, which are due tonight. The U.S. PCE inflation for October slightly missed estimates. It was down from the previous month, in line with the Fed’s comment on a smaller rate hike at the meeting in October. Energy should recover, in line with crude prices after China eased its covid restrictions. At the OPEC+ meeting on December 4, the market expects it to maintain its daily output cut of 2mn barrels after November.

On the local front, FSS retained its bullish view of the economic recovery, particularly private consumption and investment. Also, tourist arrivals accelerated. FSS still preferred domestic plays, while fund inflows should continue


2) S.Korea inflation slows down to 5% in November

South Korea’s annualized inflation for November came in at 5%, slightly lower than Reuters poll estimations for 5.1%. The latest reading marks the slowest pace since April and also a drop from 5.7% in October and a 24-year high of 6.3% in July.

Amid rising inflation, the Bank of Korea has been raising rates since August last year for a total of 275 basis points to 3.25%, a decade high.

Meanwhile, core inflation ticked up to 4.3% in November from 4.2% in October.


3) Credit Suisse cuts at least a third of its debt sales positions

Credit Suisse is reportedly cutting at least a third of its debt sales positions globally as part of its restructuring program, which would result in thousands of job cuts along with a new strategic plan that would significantly downsize its investment banking and trading business.