Thailand’s SET Index ended the morning session at 1,610.98 points, down 9.35 points or 0.58% with a trading value of THB33,826 million. The analysts stated the market this morning struggled from investors’ concerns on potential impact from inflation and Fed commented it would continue to hike rates as needed to contain inflation.
However, after a sharp loss at the opening bell, most markets in ASEAN are now undergoing a rebound, with the Indonesian bourse and Dow Jones Futures index moving back into the green territory.
Owing to strict monetary policy, the United States is currently suffering a recession that is projected to worsen in the near term. This was evidenced by the lower-than-expected earnings results of U.S. companies, particularly those dependent on domestic consumption. As a result, there is a likelihood that analysts may need to reduce their earnings projections for the upcoming period due to concerns about both the recession and earnings growth, forcing investors to migrate into long-term bonds and flattening the US yield curve once again, according to Trinity Securities.
In the midst of a harsh market sell-off fueled by inflationary pressures and recession fears, Trinity recommends the Defensive theme, which includes 1) healthcare (BDMS, BCH, CHG, IMH), 2) consumer staples (CPALL, MAKRO, BJC), and 3) utilities (BGRIM, GPSC, GULF).
