Kaohoon Morning Brief – 8 January 2024

Krungsri Securities (KSS) expected Thailand’s SET Index to weaken to 1,420-1,425 points from the uncertainties on the direction of the Fed’s rate cut, following the higher-than-expected non-farm payrolls in December last year. The job additions resulted in rising US dollar and bond yields, which pressured the capital market and fund flows. Still, the analyst expected rising crude oil prices could push energy stocks higher and could support the stock market to bounce back.


Thai Prime Minister Srettha Thavisin said the central bank’s rates are not supporting the economy, citing that a rate hike despite inflation at a negative territory has not been good to the economy at att. Meanwhile, the Thai PM also urged the Bank of Thailand to avoid any moves that will adversely impact low-income household

The central bank maintained its policy rate at 2.5% in the final meeting of 2023 in November after raising rates by 200 basis points since August a year prior to curb inflation.

The Bank of Thailand  will meet on February 7 to review the situation. However, analysts and economists were expecting to see no rate cuts in the first half of this year.

Thailand’s December headline Consumer Price Index (CPI) contracted by 0.83% YoY, compared to -0.3% YoY estimated in a Reuters poll. Inflation dropped 0.44% YoY in the previous month, according to the announcement by the commerce ministry on Friday.

Meanwhile, the core CPI, which excludes food and energy prices, rose 0.58% YoY, compared to a 0.6% rise expected in a Reuters poll.


US congressional leaders settled a $1.59 trillion deal on top-line spending for the 2024 fiscal year on  Sunday to avoid a potential shutdown in the government sectors at the deadline on January 19, 2023.

Congressional leaders allocated $886 billion from the spending as a military spending and $705 billion for non-defense spending.