Kaohoon Morning Brief – 7 April 2023

1) FSS expects less volume on “Good Friday” holiday as market still lacks catalysts

Finansia Syrus Securities (FSS) expected Thailand’s SET Index to move within the range of 1,560-1,585 points with low trading volume as stock markets are closing on the Good Friday holiday.

The analyst noted that the market lacks positive drivers to boost sentiment amid concerns over global economic growth. The IMF expected global growth at 3% in the next five years, which will be the slowest in 30 years. Meanwhile, investors continue to seek low-risk assets and safe assets, reflecting concerns over the global economy in the second half of this year.


2) China and Malaysia discuss to open Asian Fund to reduce dollar reliance

China and Malaysia will discuss a revival of forming an Asian Monetary Fund to reduce their reliance on the dollar or the International Monetary Fund.

A decade old proposal was put on the table at Boao forum in Hainan last week, as countries in the region are looking to mitigate the risks of a still-strong dollar that pressured local currencies.


3) Fed’s balance sheet drops by $73.6 billion due to QT

The U.S. Federal Reserve’s balance sheet fell by $73.6 billion to $8.63 trillion in the past week as banks trimmed emergency borrowing from the Fed due to stabilization in the banking system.

Financial institutions drew $149 billion, down from $154 billion in the previous week and $164 billion two weeks ago. The decrease in the Fed’s balance sheet is primarily driven by quantitative tightening.


4) Samsung plans to cut chip output as 1Q23 profit likely to plunge nearly 100%

Samsung Electronics released its guidance for its first quarter performance, saying that profit in the first three quarters is likely to drop by 96% as a chip glut worsened and buyers slowed purchases amid a global economic slowdown.

“Memory demand dropped sharply, many customers continue to adjust their inventories for financial purposes,” the company said.