Kaohoon Morning Brief – 19 May 2023

1) FSS sees good momentum in Thai stock market, boosted by domestic and international sentiment

Finansia Syrus Securities (FSS) expected Thailand’s SET Index to move in a sideways to sideways up trend within the range of 1,520-1,535 points, boosted by positive progress in the negotiation to increase the debt ceiling in the U.S. and should be finalized by next week. Meanwhile, concerns over political issues in Thailand continued to ease. The analyst recommended investors to keep an eye on the official signing for a coalition government on May 22 and look for any scheme that could boost the economy, which could give a boost in investor confidence.


2) Japan’s core inflation remains above 2% target in April

Japan’s core consumer inflation in April maintained above the 2% target of the central bank as the market eyes a tweak in its tight policy.

According to the data released on Friday, core consumer inflation, which excludes only fresh food, but includes energy items, rose 3.4% in April from the previous year, in line with the consensus, but up from a 3.1% gain in March.

Some analysts expected that inflation that remains above the target range could lead to some adjustment by the Bank of Japan Governor Kazuo Ueda to the central bank’s ultra-loose policy.


3) Alibaba will spin off its cloud division

Alibaba announced its plan for a spin off of its cloud division as a separate, publicly traded company. This came not long after the e-commerce giant announced that it will list its logistics arm Cainiao Smart Logistics Group earlier.

Alibaba announced in late March that it will monetize non-core assets and explore selling some businesses as it reinvents its operation following a regulatory crackdown that erased 70% off its stock.

Group CEO Daniel Zhang stated that the split of the business into six units will allow each to become more nimble, respond more quickly to market shifts, and issue their own initial public offerings (IPO).