Kaohoon Morning Brief – 23 January 2023

1) KSS expects SET Index to move within 1,670 – 1,690 range

Krungsri Securities (KSS) expected Thailand’s SET Index to move between 1,670 – 1,690 points as concerns of rising NPL among the banking and financial sectors weighed on the market even with positive sentiment from Wall Street that closed higher and oil prices maintaining above $80/bbl, boosted by China’s reopening.


2) Economists expect BOT to hike rates on Wednesday to 1.50%

Thailand’s central bank is bound to a 25 basis point interest rate hike on Wednesday, according to a Reuters poll.

21 of 23 economists polled by Reuters expected the Bank of Thailand to raise its benchmark one-day repurchase rate by 25bps to 1.50% during the meeting on January 25 to curb inflation rate despite a brighter outlook from China’s reopening as inflation rate in December last year at 5.89% was still well-above the central bank’s target range of 1-3%.

Further hikes are also expected. 14 of 22 respondents in the poll expected the BOT to increase the rate again in March to 1.75%.


3) Australia stocks rise to nearly 9-month high

The Australia’s S&P/ASX 200 index extended its gain to the fourth day as the index rose slightly by 0.01% to 7,458.00 points on Monday. The index is close to its nine-month high as technology stocks moved in line with Wall Street’s strong finish last week, especially its tech-heavy Nasdaq Composite.


4) Oil dipped slightly after a huge gain last week.

Oil prices fell slightly on Monday after finishing higher last week in response to China’s reopening and its travelling season during the Lunar New Year.

The international benchmark Brent crude fell 0.49% to $87.20 per barrel, while the West Texas Intermediate also fell 0.49% to $81.24 a barrel.

Last week Brent rose 2.8%, while WTI gained 1.8%.