Market Roundup 18 December 2023

Thailand’s SET Index closed at 1,393.41 points, increased 2.38 points or 0.17% with a trading value of 30.9 billion baht. The analyst stated that the Thai stock market traded sideways to conform with foreign markets. It lacks new factors after the US Fed signalled interest rate cuts next year. The analyst expected the market to also continue trading sideways tomorrow.


Sea freight stocks are pricing in positive sentiment from the rising tension in the Red Sea, following recent attacks by Yemen’s Houthis on vessels in protest against Israel’s bombardment and invasion of Gaza.

Stocks in the Thai market such as Regional Container Lines Public Company Limited (SET: RCL) (+7.39%), Precious Shipping Public Company Limited (SET: PSL) (+7.88%) and Thoresen Thai Agencies Public Company Limited (SET: TTA) (+2.54%) rose sharply on Monday as Houthi militants stepped up their assaults during the weekend, which damaged the key route of sea shipping between Asia and Europe.

Krungsri Capital Securities (KCS) stated that this has a positive impact on the sentiment for Thai shippers as the latest freight data for Shanghai to Rotterdam route showed 23% growth so far this month. This will also benefit other operators such as Leo Global Logistics Public Company Limited (SET: LEO), Sonic Interfreight Public Company Limited (mai: SONIC) and Triple I Logistics Public Company Limited (SET: III).


US home market poised to return in 2024 as 30-Y Rate Drops under 7% as 30-year mortgage rates dipped below 7% last week for the first time since August and are now down over 100 basis points in the last two months.

Housing market supply will quickly recover if rates continue to fall at this current pace as the price is now becoming more affordable, compared to a peak of nearly 8% in late October this year. Borrowing costs in the US have eased for seven straight weeks as the Fed signalled for rate cuts.

The rate has been declining since its peak. Most major lenders and realtor organizations expect 30-year mortgage rates to move at the range between 6% and 7% in 2024.

The decrease in rates was deepened last week after the Fed’s dot plot also showed that most officials see rate cuts in 2024 with a median projection of three. However, the market expected to see about six cuts. The first cut could be as soon as March with a 70% chance, much higher than 30-50% prior to the meeting. There is also about a 20% chance that the Fed could cut interest rate by 25 basis points next month, according to CME FedWatch Tool.