Kaohoon Morning Brief – 9 December 2022

1) FSS says pressure on energy would benefit anti-commodity stocks, while investors monitor U.S. PPI for November

Finansia Syrus Securities (FSS) expected the SET to move sideways. In this regard, its crucial short-term support at 1,610 points should remain solid. Also, the index may make short-term recoveries after retreating in the past four days. Today, the market is waiting for the U.S. PPI for November. If it decreased and was lower than estimates, it should help ease concerns over the Fed’s future rate hikes and the economic slowdown outlook. However, crude prices extended their short-term weaknesses.

Although it would put continued pressure on energy, particularly upstream, it would benefit anti-commodity, such as power and building materials, due to lower cost pressure. Besides, it would help improve consumers’ purchasing power, which would, in turn, help support consumption to accelerate. It would be in line with the Consumer Confidence Index for November, which recovered for the sixth straight month to 47.9. Since catalysts from the domestic economic recovery should help offset global risks, Thai equities should outperform other regions. FSS stated that it focused on investing in domestic and consumption plays.


2) China’s inflation slows down, following with factory-gate prices amid weak economic activities

China’s consumer price index rose 1.6% in November from a year earlier, slowing from 2.1% in October. Meanwhile, the producer price index fell 1.3%, unchanged from the figure reported in October. This reflects weak economic activity and soft demand in China.

The World’s second largest economy had been battling with another Covid-19 outbreak that led to several lockdowns in major cities and protests that caused production to slow down.


3) US SEC tells companies to describe risks related to crypto assets

The U.S. SEC released its guidance on Thursday, advising companies to disclose their involvement with digital commodities firms. According to this guidance, companies are advised to disclose any risks or material exposures related to crypto assets.