Kaohoon Morning Brief – 21 February 2023

1) FSS says market lacks catalysts, expecting sideways trend

Finansia Syrus Securities (FSS) expected Thailand’s SET Index to move in a sideways trend within 1,650-1,667 points as the market lacks catalysts and the U.S. market closed yesterday for a holiday, while being pressured by concerns of Fed’s rate hike from earlier forecast of 4.75-5% to 5.25-5.5% and rising bond yields close to Fed’s peak rate.

The analyst recommended investors to pick stocks with unique catalysts and accumulate domestic and reopening stocks while slowing down.


2) Hong Kong plans to allow retail investors to trade digital tokens

Hong Kong made an outline to allow retail investors to trade digital tokens like Bitcoin and Ether on exchanges licensed by the city’s Securities and Futures Commission (SFC), moving toward its goal of becoming a crypto hub.

The trade will be allowed amid safeguards such as knowledge tests, risk profiles and reasonable limits on exposure.


3) Japan’s factory activity slows down at fastest pace in more than two years

A business survey released on Tuesday showed that manufacturing activity in Japan had dropped at the sharpest pace in 30 months in February. This is worrying data for the world’s third-largest economy, which is trying to overcome declining demand and rising cost pressures.

In February, the au Jibun Bank flash Japan manufacturing purchasing managers’ index (PMI) fell to 47.4, from January’s reading of 48.9.

Export orders fell by the most since July 2020, reflecting persistently weak global demand, as shown by recent data such as slower-than-expected GDP growth in October-December and January’s record trade deficit.