Kaohoon Morning Brief – 29 December 2022

1) KS expects SET Index to move within 1,640-1,650 range as inflation and recession fears return

Kasikorn Securities (KS) expected Thailand’s SET Index to move within 1,640-1,650 range, stating that the reopening in China is a positive factor for the market, but in the meantime, surging demand for products and services from the reopening could accelerate inflation rate and led to a rate hike from the central bank. This could also lead to a recession.


2) US to require Covid tests from anyone travelling from China, Hong Kong and Macau

The United States will require negative Covid tests from airline passengers regardless of their nationalities that are traveling from China, Hong Kong and Macau before being able to enter the states as concerns of widespread infections in the world’s second-largest economy grow after Beijing’s abrupt reopening.

The measure will start from January 5, 2023 onward until further notice.

Covid infections in the U.S. recently surpassed 100 million cases, while some analysts said that the actual infections could have surpassed 200 million already.


3) BlackRock expects positive stock market at some point in 2023

BlackRock expected to turn more positive on risk assets at some point in 2023, but stating that the current state is not there yet. The firm took in pricing damage in the market into consideration for its 2023 investment theme.

BlackRock noted that equity valuations do not yet reflect the damage ahead and it will turn positive on equities when it thinks the damage is priced or its  view of market risk sentiment changes.

Still, BlackRock said that the firm will not see this as a prelude to another decade-long bull market in stocks and bonds.