Head of Research, Krungthai XSpring

Waraporn Wiboonkanarak

Head of Research

A full service Thai brokerage

Krungthai XSpring

Krungthai XSpring is a full service broker. The company provides a wide range of investment services such as Securities Brokerage, Derivative Agent Business, Securities Borrowing and Lending, Securities Trading, Underwriting, Financial Advisory, Wealth Advisory, Private Fund Management and International Markets Securities Trading. 

In terms of credibility, Fitch Ratings has assigned Krunghtai XSpring a long-term rating of AA- and a national short-term rating of F1+ with stable outlook.

Cross Asset Strategy

<ul><li>The SET Index is expected to move sideways, with the resistance at 1,651/1,660 points and the support at 1,635/1,630 points.</li><li>Negative factors include the better-than-forecast US services PMI in November, suggesting that inflation may not fall as rapidly as the market expects.</li><li>Positive factors include Thai inflation in November, which may continue to slow down.</li></ul>

The SET Index is expected to move sideways, with the resistance at 1,651/1,660 points and the support at 1,635/1,630 points.Negative factors include the better-than-forecast US services PMI in November, suggesting that inflation may not fall as rapidly as the market expects.Positive factors include Thai inflation in November, which may continue to slow down.

Macroeconomics

<ul><li>The nationwide minimum wage hike, for the first time since 2020, at an average of 5% to Bt337/day will become effective on October 1, 2022.</li><li>The incremental expenditures should be manageable, as the wage hikes are estimated to have an aggregate impact on net profit margins by -0.31 ppts.</li><li>Meanwhile, rising wages have a positive correlation with consumption, which should benefit the food and beverage, health care and financial sectors.</li></ul>

The nationwide minimum wage hike, for the first time since 2020, at an average of 5% to Bt337/day will become effective on October 1, 2022.The incremental expenditures should be manageable, as the wage hikes are estimated to have an aggregate impact on net profit margins by -0.31 ppts.Meanwhile, rising wages have a positive correlation with consumption, which should benefit the food and beverage, health care and financial sectors.

Manageable Impact From Minimum Wage Hikes

Equity Bottom-Up

<ul><li>Technically, the SET Index is expected to have a chance to rebound, with the resistance at 1,494/1,500 points and the support at 1,482/1,475 points (10-day EMA).</li><li>In the medium term, the index is moving in a sideways pattern within a broader range of 1,273-1,716 points and is currently in the process of testing the resistance.</li><li>In the short term, there is a chance of recovery, despite the index forming a lower high and lower low yesterday.</li></ul>

Technically, the SET Index is expected to have a chance to rebound, with the resistance at 1,494/1,500 points and the support at 1,482/1,475 points (10-day EMA).In the medium term, the index is moving in a sideways pattern within a broader range of 1,273-1,716 points and is currently in the process of testing the resistance.In the short term, there is a chance of recovery, despite the index forming a lower high and lower low yesterday.

<ul><li>Technically, the SET Index is expected to move sideways down, with the support at 1,365 points and 1,360 points (1/2 of the Fibonacci range of 1,325-1,404 points) and the resistance at 1,375/1,380 points (50-day EMA/75-day EMA).</li><li>We recommend stocks with positive news stories: NER, MASTER and SVI.</li><li>The SET Index closed negative for the third straight day, with trading volume of Bt46.2bn.</li></ul>

Technically, the SET Index is expected to move sideways down, with the support at 1,365 points and 1,360 points (1/2 of the Fibonacci range of 1,325-1,404 points) and the resistance at 1,375/1,380 points (50-day EMA/75-day EMA).We recommend stocks with positive news stories: NER, MASTER and SVI.The SET Index closed negative for the third straight day, with trading volume of Bt46.2bn.

<ul><li>Technically, the SET Index is expected to move sideways up, with the resistance at 1,375/1,381 points (10-day and 25-day EMA) and the support at 1,362/1,357 points.</li><li>We anticipate the chairman to reiterate a cautious approach towards cutting the fed funds rate, given the lingering risk of persistent inflation.</li><li>The ECB is anticipated to maintain the policy interest rate for the fourth consecutive time at 4.5%.</li></ul>

Technically, the SET Index is expected to move sideways up, with the resistance at 1,375/1,381 points (10-day and 25-day EMA) and the support at 1,362/1,357 points.We anticipate the chairman to reiterate a cautious approach towards cutting the fed funds rate, given the lingering risk of persistent inflation.The ECB is anticipated to maintain the policy interest rate for the fourth consecutive time at 4.5%.

India

Savita Oil Technologies is an Indian manufacturer of specialty petroleum products, including transformer oils, white oils, liquid paraffins, and automotive and industrial lubricants. The company also operates a renewable energy division with wind power plants. It is headquartered in Mumbai, Maharashtra, India, and was founded in 1961.

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Savita Oil Technologies (STEC IN)

Market Outlook

The SET Index is expected to move sideways, with the resistance at 1,651/1,660 points and the support at 1,635/1,630 points. Negative factors...

Krungthai XSpring

Manageable Impact From Minimum Wage Hikes

The nationwide minimum wage hike, for the first time since 2020, at an average of 5% to Bt337/day will become effective on October 1, 2022. The...

Krungthai XSpring

3Q24 US Earnings

Technically, the SET Index is expected to have a chance to rebound, with the resistance at 1,494/1,500 points and the support at 1,482/1,475...

Krungthai XSpring

Today's Dominant Ideas

Technically, the SET Index is expected to move sideways down, with the support at 1,365 points and 1,360 points (1/2 of the Fibonacci range of...

Krungthai XSpring

Keep a Close Watch on the ECB Meeting

Technically, the SET Index is expected to move sideways up, with the resistance at 1,375/1,381 points (10-day and 25-day EMA) and the support at...

Krungthai XSpring

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