Kaohoon Morning Brief – 4 April 2024

Krungsri Securities expected Thailand’s SET Index to move within the range of 1,365-1,385 points as the market lacks positive catalysts and also an uncertain direction of Fed’s rate cuts, which would result in the index to move in a narrow range with lower trading volume for some time. The analyst recommended investors to pick stocks with individual catalysts such as energy, exports stocks as well as those that will benefit from China’s PMI.


Federal Reserve Chairman Jerome Powell recently stated that it will take some time to evaluate the current state of inflation, leading to uncertainty regarding the timing of potential interest rate cuts.

Powell emphasized that they are not in a rush to ease monetary policy and do not expect to lower the policy rate until there is greater confidence that inflation is moving sustainably down towards 2 percent. The Federal Open Market Committee (FOMC) has previously voted to hold benchmark short-term borrowing rates steady, with a need for “greater confidence” before considering cuts. The Fed’s preferred inflation measure, the personal consumption expenditures price index, showed higher rates (2.5% for February) than the 2% target.


The Industrial & Commercial Bank of China Ltd. has announced a 300-billion yuan financing initiative to support the tourism industry in China amidst sluggish consumer spending in the country’s second-largest economy. This move by the largest bank in China comes as a response to economic challenges such as deflationary pressure and a prolonged property crisis, which have impacted consumer activity.