Kaohoon Morning Brief – 29 June 2023

1) KSS sees fluctuation in SET Index with domestic and overseas negative sentiment

Krungsri Securities (KSS) expected Thailand’s SET Index to fluctuate within the range of 1,460-1,480 points despite an increase in crude oil prices after the U.S. crude inventories dropped more than expected that should be a positive sentiment to the energy sector. However, pressure from major central banks raising rates to slow down inflation and uncertainties in Thai politics as well as the expiration of TFEX series M would continue to weigh on the Thai market.


2) Powell says more rate hikes are coming due to hot labour market

Federal Reserve Chairman Jerome Powell said that he expects more interest rate hikes in the future and possibly at an aggressive pace due to the strong labour market.

Policymakers also had the same view as the chairman, seeing another half percentage point of rate hikes through the end of 2023.

According to CME FedWatch Tool, the market is now expecting a 81% probability for another 25 basis point rate hike in the July meeting.

The Fed had been hiking its policy rate each meeting since March 2022 before coming to a stop at the meeting in June.


3) Apple on a cusp to $3 trillion dollar company

Apple’s (AAPL) share price rose 0.63% to close at a record high on Wednesday at $189.25 per share and is now just less than $2 away from becoming a 3-trillion-dollar company.

Apple has never closed the session above the $3 trillion level in market capitalization, it briefly surpassed the mark in intra-day trading on January 3, 2022 before closing the session just slightly lower. The stock would have to close above $190.73 a share to hit the record $3 trillion market cap, according to Dow Jones Market Data.