Kaohoon Morning Brief – 29 September 2023

1) KSS expects SET Index to weaken as negative sentiment continues to pressure the market

Krungsri Securities (KSS) expected Thailand’s SET Index to weaken to 1,475 -1,470 points, as the market lacked positive catalysts and Fed’s potentially maintaining its interest rates at a higher level for longer continued to pressure the market as well as the looming government shutdown in the U.S.

However, the analyst expected the Thai stock market to bounce back from a technical signal that indicated an oversold.


2) Germany’s inflation softened more than estimated in September

Germany’s inflation softened more than estimated in September, showing a slowdown to 4.5% from 6.1% in August, which was the slowest since February last year and also slightly better than a 4.6% estimate. Meanwhile, core inflation, which excludes volatile food and energy prices, dropped to 4.6% from 5.5% in August.

In addition, food prices continued to record an above-average growth with 7.5% in September.


3) JPMorgan expects oil prices at $150 by 2026

JPMorgan expected an increase in supply deficit of 1.1 million barrels per day by 2025 and 7.1 million barrels per day by 2030.

The American investment bank upgraded the global energy complex to an ‘overweight’ rating and believed that the international benchmark Brent crude oil prices could reach $150 by 2026. JP Morgan saw an upside for major energy producers and operators like Shell, Baker Hughes, and Exxon Mobil.