Kaohoon Morning Brief – 18 January 2023

1) FSS expects SET Index to move within 1,670-1,690 range without positive catalystss

Finansia Syrus Securities (FSS) expected Thailand’s SET Index to continue moving in a sideways trend within the range of 1,670-1,690 points as the market lacked a positive catalyst to push further after already pricing in the U.S. inflation and Fed factors as well as China’s reopening. The analyst recommended investors to keep an eye on the Bank of Japan’s meeting to consider cancelling its yield-curve control measure. 


2) Goldman Sachs’ 4Q22 earnings largely missed expectations

Goldman Sachs dropped 6.44% after reporting a disappointing fourth-quarter earnings, pressured by declines in investment banking segment and asset management revenues, as well as higher credit provisions and operating costs. 

Earnings per share totaled $3.32 in the quarter, missing analysts expectations by around 40% for $5.56 per share. 

Revenue also fell slightly short of expectations at $10.59 billion, decreased 16% from a year earlier.

The Wall Street bank also booked charges of $972 million against potential losses on its credit card and its point-of-sale loan portfolios.


3) JPMorgan expects to see recovery in China this year

JPMorgan expected to see a sustained economic recovery in 2023 from China as a result of reopening and policy stimulus after the end of its nearly three-year long zero-Covid policy.

Its analyst noted that service sectors should be the early beneficiary when pent-up demand is released. Moreover, sales of consumer goods might also pick up due to improving confidence and continued policy support.

Meanwhile, S&P Global Market Intelligence stated that it has seen a gradual recovery in mobilities, passenger flight counts and private consumption.