Kaohoon Morning Brief – 5 September 2023

1) FSS expects SET Index to trade in limited range as the market lacks catalyst

Finansia Syrus Securities (FSS) expected Thailand’s SET Index to move in a sideways trend within the range of 1,540-1,555 points as the market lacked a positive catalyst to take the next step. The analyst recommended investors to monitor Thai inflation rate, which is expected to be released today. The reading is expected to post no pressure that would lead to the Thai central bank to raise interest rate from the current level of 2.25%.

The new Thai cabinet will take an oath today, which the analyst sees as positive sentiment to investors with upcoming stimulus measures in 4Q23 that would boost the Thai economy in the short and long-term.


2) BOT’s governor warns of lower GDP this year

The Bank of Thailand Governor Sethaput Suthiwartnarueput said on Tuesday that the economic recovery in the kingdom is intact and maintained foreign tourists forecast at 29 million by year’s end. However, the governor noted that spending from tourists might be lower than expected.

The governor warned that this year’s economic growth and inflation were expected to be lower than previously forecast, while the current policy rates are close to neutral level and the Southeast Asian country’s economic recovery remains intact.

In addition, inflation would gradually return to within target range, he said.


3) China’s services activity shows slowest growth in eight months

China’s services activity expanded at the slowest pace in eight months in August, coming in at 51.8 vs 53.5 expected and 54.1 in the previous month.

The lower-than-expected Caixin/S&P Global services purchasing managers’ index (PMI) indicated that weak demand continued to pressure the world’s second-largest economy as it pushed out stimulus measures to boost economy and activity.

The reading is slightly above the 50 mark which separates expansion from contraction in activity.