Kaohoon Morning Brief – 20 June 2024

Maybank Securities (Thailand) (MST) expected Thailand’s SET Index to move in a sideways trend without any positive factors to boost the market. Investors will monitor the ongoing discussion for the FY2025 budget. The overall outlook, the market needs more confidence as measures from the Stock Exchange of Thailand could restore confidence in the market as well as the return of LTF.


Taiwan Semiconductor Manufacturing Co. (TSMC) is on the brink of reaching a $1 trillion market capitalization as a result of a surge in demand for AI-related products and anticipated price hikes set for 2025. Consequently, various financial institutions on Wall Street have adjusted their price targets for the company upwards. Goldman Sachs, for instance, has raised its target by 19% to NT$1,160, foreseeing moderate price increases for chips with three- and five-nanometer technology.

Additionally, JPMorgan anticipates that AI sales will contribute 35% to TSMC’s overall revenue by 2028 and foresees an increase in capital expenditure. TSMC’s US-listed ADRs have experienced a significant 73% surge in value this year, propelling the company’s market capitalization to $932 billion, coming close to the coveted $1 trillion threshold. This impressive growth has allowed TSMC to outperform Berkshire Hathaway, solidifying its position as the eighth-largest company globally.


China opted to keep its benchmark lending rates unchanged on Thursday, aligning with the predictions of the market, with the one-year LPR remaining at 3.45% and the five-year LPR at 3.95%.

The decision to maintain the steady Loan Prime Rate (LPR) fixings indicates that Beijing’s attempts at monetary easing continue to face constraints due to narrowing interest rate margins and a depreciating currency.