Kaohoon Morning Brief – 1 September 2023

1) KSS expects Thai market to fluctuate as investors monitor U.S. job data

Krungsri Securities (KSS) expected Thailand’s SET Index to move between 1,555-1,575 points. There is speculation that OPEC+ will cut production output until year’s end, resulting in a rise of oil prices overnight. Meanwhile, anticipation of the new Thai government to introduce stimulus measures, which would reflect positively on the index. However, the volatility in Wall Street and a derisk before the upcoming job data for August could fluctuate the Thai market.


2) Hong Kong halts trading session to brace for super typhoon

Hong Kong Stock Exchange halted its trading session on Friday as it is bracing for Super Typhoon Saola, causing bad weather over the city. According to the Hong Kong stock exchange guidelines, the trading session will be halted if a No. 8 signal or above is issued before pre-opening and will remain in place until noon.

The latest update came in at 8:45 Hong Kong time, stating that the Hong Kong Observatory noted that the Storm Signal No. 8 will “remain in force for most of today.”


3) Moody’s downgrades Country Garden to Ca with negative outlook

Moody’s further downgraded China’s Country Garden to Ca from Caa1, with negative outlook, due to rising concerns that the company does not have sufficient cash to fulfill upcoming offshore bond maturity.

The real estate giant is at risk of a default if it does not pay before a 30-day grace period expires in early September.

More importantly, the company also has to make a repayment on a bond loan totalling 3.9 billion yuan (US$537 million), which is due to mature in the coming days.