Kaohoon Morning Brief – 28 April 2023

1) KSS expects SET Index to bounce back, following regional markets on strong earnings season

Krungsri Securities (KSS) expected Thailand’s SET Index to bounce back to test the resistance level at 1,540-1,545 points, following a positive sentiment in regional markets from a strong earnings season. Buying pressure on certain stocks also supports the main index. However, the analyst recommended investors to be cautious for a selloff prior to the Fed and ECB meeting as the market tends to lower the risk during this period. Meanwhile, long holidays in Thailand and fluctuation in DELTA could also pressure the market.


2) US reports slower growth in 1Q as rate hikes and inflation pressured the economy

U.S. economic growth in the first three months of this year slowed to 1.1% from the previous quarter, according to the announcement from the Commerce Department on Thursday. The reading largely missed expectations for 2.0% growth and 2.6% expansion in the final quarter of 2022 that contributed to a 2.1% increase for the year.

Growth in the world’s largest economy slowed down as interest rate increases and inflation weighed on an economy that is expected to decline even further ahead.


3) Singapore increases property duty tax to keep prices in check

Singapore announced that starting from Thursday both local and foreign buyers of residential properties will have to pay higher additional stamp duties.

This is the third cooling measure by the government as property prices showed renewed signs of acceleration amid resilient demand” in the first three months of this year, according to the government’s statement.

“Demand from locals purchasing homes for owner-occupation has been especially strong, and there has also been renewed interest from local and foreign investors in our residential property market,” wrote the statement. “If left unchecked, prices could run ahead of economic fundamentals, with the risk of a sustained increase in prices relative to incomes.”