Kaohoon Morning Brief – 22 June 2023

1) KSS expects negative session for SET Index amid Fed’s potential rate hikes

Krungsri Securities (KSS) weak trading session for the SET Index to the range of 1,515-1,510 points, following the plummet in regional markets after the U.S. Fed signalled for more rate hikes until inflation reaches its target range of 2%. The fund outflow of foreign investors will also drag the market down.

However, KSS expected oil prices that have been moving at a higher level would be positive to the energy sector and could support the market to bounce back.


2) US Fed expects more rate hike to bring inflation down to 2%

Federal Reserve Chairman Jerome Powell  reaffirmed on Wednesday that more rate hikes are likely as inflation remained “well above” the target range of 2%.

The statement came after the central bank decided to hold the rate in a range between 5%-5.25% after more than a year of hike cycle and also after the report of inflation coming down to 4% in May.

“Nearly all FOMC participants expect that it will be appropriate to raise interest rates somewhat further by the end of the year,” said Powell.

“Nonetheless, inflation pressures continue to run high, and the process of getting inflation back down to 2% has a long way to go,” noted the chairman.


3) PTTEP acquires 47-year green hydrogen concession block in Oman

PTT Exploration and Production Public Company Limited (SET: PTTEP) has announced that its subsidiary and consortium partners have been awarded the Green Hydrogen Concession Block in the Sultanate of Oman (Oman) and entered into the Project Development Agreement and Sub-Usufruct Agreement with Hydrogen Oman SPC (Hydrom) for the exclusive business development and production rights of green hydrogen project in Block Z1-02 for 47 years. The consortium will carry out the feasibility and technical studies, in order to finalize the total capital expenditure requirement for the project.