Kaohoon Morning Brief – 28 December 2022

1) FSS expects SET Index to move sideways as China’s reopening could aggravate


Finansia Syrus Securities (FSS) expected Thailand’s SET Index to move sideways within the 1,630-1,645 range after a rally yesterday in response to China lifting its Covid-19 restrictions on inbound travellers. However, the market this morning was fluctuating in concerns of accelerating inflation after China reopening, resulting in concerns on further rate hikes.

FSS noted that overseas factors will guide the Thai stock market around year’s end with low trading volume. Still, the firm maintained its positive view on Domestic & Reopening Play.


2) Oil price cap could push Moscow budget deficit higher

Russian Finance Minister Anton Siluanov reportedly told journalists that sanction measures by western countries, notably an oil price cap imposed by the Group of Seven, is hampering export income of Moscow and could push its budget deficit higher than the expected 2% of GDP next year.

In the meantime, Russia is expecting to cut output between 5-7% next year in retaliation to the price cap, according to the RIA news agency citing Deputy Prime Minister Alexander Novak.

President Vladimir Putin on Tuesday signed a decree to ban  the supply of crude oil and oil products from February 1 for the duration of five months to those that abide by the price cap.


3) Japan’s factory output fell in November, its third consecutive month

Japan’s factory output fell for a third consecutive month in November, pressured by weak demand for machinery products amid gloomy global economic outlook.

Factory output dropped 0.1% in November from October, slightly better than the market predictions for a 0.3% drop.

The decrease in November marked Japan’s third monthly decrease and followed a revised 3.2% fall in October and 1.7% contraction in September.