Kaohoon Morning Brief – 7 September 2023

1) KSS expects weak session for SET Index after US service sector picking up

Krungsri Securities (KSS) expected Thailand’s SET Index to move downward to 1,540  1,545 points in concerns of the Fed maintaining interest rates for a longer period after the U.S. service sector rose to 54.5 in August, raising concerns on the development of inflation. Meanwhile, U.S. bond yields also edged higher, which is a negative sentiment to foreign fund flows. The analyst recommended picking stocks with individual catalysts such as oil, rubber, sugar, which are commodity-related stocks and also those that benefit from the government’s stimulus measures.


2) Apple signs a deal with Arm through 2040

Apple has inked a deal with chip designer Arm through 2040 and beyond as the producer of iPhone looks to secure access to a core piece of intellectual property of Arm’s architecture for its chip processor, Arm said in a U.S. Securities and Exchange Commission filing Tuesday.

The chip designer is owned by SoftBank and is looking to kick off its first trading day in Nasdaq Composite in the coming weeks at a total valuation that could be as high as $52 billion. This would mark the biggest tech IPO for 2023 so far.

Arm also said in the filing that Apple, Alphabet, Nvidia and other top technology companies showed interest in buying up to $375 million of its shares.


3) Poland’s central bank sharply cut interest rates that raises concerns over political moves

Poland’s central bank surprised the market with a sharp rate cut by 75 basis points to 6% on Wednesday despite inflation in the country still hanging at a double-digit rate.

The cut raised concerns in the market that the National Bank of Poland was a political move to help the populist governing party ahead of parliamentary elections next month.

Though inflation climbed down from over 18% this year, it is still running slightly over 10%.