Kaohoon Morning Brief – 18 September 2023

1) FSS expects SET Index to move within 1,535-1,545, pressured by higher bond yields

Finansia Syrus Securities (FSS) expected Thailand’s SET Index to move in a sideways direction within the range of 1,535-1,545 points as the market sentiment is leaning toward negative territory after the US bond yields edge higher after inflation was still above target. Meanwhile, the delay of TSMC’s high-end chip distribution could pressure tech stocks and demand in the future.


2) Market fully prices Fed to pause rate hike this Wednesday

Markets are now fully priced for the Federal Reserve to maintain interest rates at 5.25 – 5.50% in the meeting scheduled this Wednesday. The main focus will shift to the Fed’s outlook on the economy and hints for the November’s meeting. The market expected the first rate cut to be in June next year and about 75bps cut in total in 2024, according to CME FedWatch Tool.


3) China Evergrande falls 22% as police detains some staff

China Evergrande fell 22% at the open on Monday after the report of Shenzhen police detaining some staff at China Evergrande Group’s wealth management unit, which led to concerns that a new investigation could put further pressure on the debt-piling property developer. However, the share price of China Evergrande pared loss as the session progressed.