A BRIEF UPTURN IN A PUNISHING MONTH FOR STOCKS
RECAP: Global stocks moved higher on Friday, heading for their first weekly gain in a month after fears of an economic recession, while inflation eased on declines in commodity prices.
The SET index moved in a range of 1,549.98 and 1,576.05 points this week before closing yesterday at 1,568.76 points, up 0.6% from the previous week, in daily turnover averaging 62 billion baht.
Institutional investors were net buyers of 8.05 billion baht, while retail investors bought 3.37 billion. Foreign investors were net sellers of 11 billion baht. Brokerage firms offloaded 401 million baht worth of shares.
NEWSMAKERS: The US economy is strong but faces an “uncertain” global environment and could see further inflation “surprises,” Federal Reserve Chair Jerome Powell said Wednesday.
A recession in the US is not “inevitable,” Treasury Secretary Janet Yellen said Sunday, just days after the US Federal Reserve hiked interest rates, raising fears of an economic contraction.
A majority of employees at a US Apple store have voted to form the tech giant’s first union, in the wake of similar unionisation drives at Starbucks and Amazon locations.
India’s purchases of Russian coal have spiked in recent weeks despite global sanctions on Moscow, as traders offer discounts of up to 30%, according to two trade sources and data reviewed by Reuters.
Air passengers are expected to hit 83% of pre-pandemic levels this year and the aviation industry’s return to profit is “within reach” in 2023 despite ongoing uncertainty, the International Air Transport Association said on Monday.
Fitch Ratings affirmed Thailand’s credit rating at “BBB+” with a stable outlook, which is acceptable to the government, says government spokesman Thanakorn Wangboonkongchana.
Thailand’s economy is expected to grow by 3% this year and 3.7% next year, driven by exports, increased domestic demand and a recovery in tourism, the state planning agency said on Wednesday.
The Bank of Thailand’s rate committee held its key interest rate steady earlier this month, but noted that gradual hikes would allow the economy to adjust smoothly and limit negative side effects, minutes of the meeting showed on Wednesday.
Economists are warning the baht will weaken further this month because of higher volatility in global money and capital markets after the Fed’s hawkish benchmark interest rate hike.
Kasikornbank expects the baht to bottom out in the next two months, depending on the Fed’s benchmark interest rate hike.
The government is curbing imports of liquefied natural gas due to surging prices, potentially putting the country at risk of fuel shortages.
The cabinet on Tuesday approved extending existing measures for three months devised to alleviate the hardship of low-income earners from the surge in oil prices. Seeking financial aid to reduce the drain on the Oil Fuel Fund and offering tax rebates to boost tourism are among new measures approved by the cabinet. A global food shortage is expected to intensify during the third and fourth quarters this year, with the scarcity likely to benefit Thai food exporters, says the Federation of Thai Industries.
COMING UP: The US will release May core durable goods orders and pending home sales on Monday and June consumer confidence on Tuesday. Australia will release May retail sales. The US will release first-quarter GDP on Wednesday. China will release June manufacturing PMI.
Britain will release first-quarter GDP on Thursday. Germany will release June unemployment change. Canada will release April GDP. Japan will release second-quarter large non-manufacturers and manufacturers index. China will release June Caixin manufacturing PMI.
Germany, Britain and the US will release June manufacturing PMI. The eurozone will release June CPI.
STOCKS TO WATCH: Capital Nomura Securities recommends stocks that benefit from baht depreciation including GFPT, CPF, TU, SAPPE, ASIAN, MEGA, KCE, BDMS and BH. For high-growth stocks, it picks JMT, JMART, KCE, IIG, TIDLOR, INSET, BE8 and BBIK. For defensive plays, the brokerage recommends ADVANC, TIDLOR, AMATA, INTUCH, SCGP, DTAC, SCC and GPSC.
DBS Vickers Securities recommends airport, aviation and hotel stocks including AOT, AAV, BA, ERW, CENTLR, MINT, SHR, CPN and CRC. For non-commodity stocks, the brokerage recommends SCC, BGRIM, GPSC, SCGP, CBG, OSP, AAV, BA and EPG.
TECHNICAL VIEW: DBS Vickers Securities sees support at 1,540 points and resistance at 1,580. UOB Kay Hian Securities sees support at 1,540 points and resistance at 1,595.