Kaohoon Morning Brief – 20 February 2023

1) FSS expected SET Index to move sideways amid negative outlook in the market

Finansia Syrus Securities (FSS) expected Thailand’s SET Index to move sideways down on Monday within the range of 1,642-1,658 points with cloudy outlook, pressured by US inflation that showed slower progression in slowing down and Fed’s policy rates with a possibility to increase from 25bps to 50bps in the March meeting.

The analyst recommended investors to speculate on stocks with unique drivers and accumulate domestic and reopening stocks while slowing down.


2) US says tensions are growing between Washington and Beijing

U.S. officials stated that tensions are mounting with China after Secretary of State Antony Blinken met with China’s top diplomat, Wang Yi, during the weekend to the so-called China’s high-altitude surveillance balloon and its stance in the war between Russia and Ukraine.

Blinken accused that there’s no doubt the balloon that was shot down in the U.S. was attempting to engage in active surveillance, saying that this is an unacceptable violation of U.S. sovereignty and international law.

Meanwhile, the U.S. also accused China of providing Russia with non-lethal military assistance in the Ukraine war and said that there will be implications and consequences if China does so.


3) Oil prices slightly higher after losing 4% last week

Oil prices edged slightly higher in the morning session of the Asian market on Monday after dropping $2 a barrel last Friday with rising US crude inventories and cooled optimism over China’s demand recovery.

The international benchmark Brent crude rose $0.31 or 0.37% to $83.31 per barrel. Meanwhile, the West Texas Intermediate (WTI) gained $0.26 or 0.34% to $76.60 a barrel.

Oil prices closed lower by about 4% last week after the US reported higher crude and gasoline inventories.