Kaohoon Morning Brief – 13 July 2023

1) FSS expects SET Index to move between 1,482-1,500 as markets focus on political issues and 2Q23 earnings

Finansia Syrus Securities (FSS) expected Thailand’s SET Index to move in a sideways to sideways-down trend within the range of 1,482-1,500 points as foreign investors continued to withdraw from the Thai market while waiting for the voting for prime minister this evening. The analyst expected a short-term positive sentiment to the market if the voting is done in the first round.

Additionally, the market is also focusing on the 2Q23 earnings as TISCO recently posted 5% better earnings than the market expectations.


2) US inflation records smallest gains since March 2021, markets still expect rate hike in July

The U.S. inflation recorded its smallest annual increase in more than two years in June as price pressure started to slow down in the world’s largest economy.

In June 2023, the consumer price index rose 3% from a year ago, which was the lowest level since March 2021. Meanwhile, prices rose 0.2% in June from a month prior after gaining 0.1% in May. The reading was lower than Dow Jones estimates for 3.1% YoY increase and 0.3% MoM increase.

Still, the positive sentiment from lower prices did not change the market expectation for the Federal Reserve to raise the policy rate in July. CME FedWatch Tool still showed 92.4% odds that the Fed will step back into the hike cycle with a raise of 25 basis points.


3) Sony to invest ¥300 billion in R&D to compete in gaming segment

The share price of Sony Group Corporation rose 5.14% in the morning session on Thursday after the company announced to infuse ¥300 billion (approx. $2.17 billion) to expedite research and development efforts for its gaming segment in 2024, to catch up with its rival Microsoft.

Yesterday, Microsoft received a green light to begin the process of acquiring video game maker Activision Blizzard after the ruling of the U.S. judge that approved the $69 billion deal.