Kaohoon Morning Brief – 29 January 2024

Krungsri Securities (KSS) expected Thailand’s SET Index to move within the range of 1,360-1,380 points. Even with a positive sentiment from the US PCE in December and rising crude oil prices to 2-month high following expectations of higher demand from China and US, the fund flows remained weak as investors are withdrawing funds from risk assets before the Federal Reserve meeting on January 30-31 that should maintain rates at 5.5%.


A Hong Kong court ordered the liquidation of China Evergrande Group on Monday after its overseas creditors failed to reach a deal this weekend to restructure the debt-piling real estate company.

The order to wind up could send waves of concerns through China’s financial markets as the company carrying over $300 billion of liabilities will be liquidated amid authorities’ effort to shore up the stock market. The crash of Evergrand since the default of its offshore debentures in late 2021 had caused other developers to crumble as well.

The share price of Evergrande (HK: 3333) plunged 20% this morning before being halted by regulators following the court order.

Meanwhile, HangSeng Properties Index immediately erased 1.5% of its early gains in the morning session after it was up 2.5% at the open.


The US reported the figure of its favourite inflation gauge, the Personal Consumption Expenditures (PCE) price index, for December that rose 0.2% on the month and up 2.9% on a yearly basis, excluding food and energy. The reading was relatively in line with expectations by economists that saw 0.2% increase on the month and 3.0% from last year.

While core PCE rose from 0.1% in November, the annual rate was lower when compared to 3.2% in November 2022. The 12-month rate was the lowest since March 2021.