Kaohoon Morning Brief – 30 December 2022

1) FSS expects positive session on last trading day with big-cap stocks leading the market

Finansia Syrus Securities (FSS) expected SET Index to move in sideways-up trend within the range of 1,650-1,670 points, supported by foreign funds that continued to flow in the Thai stock market for the last three days in hopes that the China reopening would spark a return of Chinese tourists.

FSS expected big-cap stocks to extend their gains today, coupled with a window dressing in the last trading day of this year and the rebalance in SET50 and SET100. The firm remained positive on domestic and reopening play with positive factors from the economic recovery.


2) IPO market slumped 94% this year as there are no returning signs to intelligent capital allocation

Proceeds from initial public offering (IPO) in 2022 plunged 94% from $155.8 billion to $8.6 billion in 2021, according to the publication from Ernst & Young’s IPO in mid-December.

There were at least 10 tech IPOs in the U.S. last year that raised $1 billion or more, while none of the firms this year have done that.

David Trainer, CEO of stock research firm New Constructs said that he believed the IPO market will continue to struggle until there is a persistent return to intelligent capital allocation as the primary driver of investment decisions.ket will struggle,” said David Trainer, CEO of stock research firm New Constructs.


3) Oil prices drop on demand concerns as countries impose restrictions on travellers from China

Oil prices slipped yesterday amid concerns of uncertainties in China after several countries started to impose some restrictions on inbound travellers coming from China, Hong Kong and Macau.

The international benchmark dropped 1.2% to close at $82.26 per barrel, while West Texas Intermediate fell 0.7% to $78.40 a barrel.

Moreover, U.S. crude oil inventories rose unexpectedly last week, according to the statement by the Energy Information Administration (EIA) on Thursday.