1) KSS expects SET Index moving range between 1,585 – 1,605 without positive factors
Krungsri Securities (KSS) expected Thailand’s SET Index to move within 1,585 – 1,605 range in today’s trading session without positive factors to boost the market. Meanwhile, concerns over Fed’s raising interest rates by 25 basis points to 5.25% in the meeting on 2-3 May also pressured that market, resulting in less fund flows and fluctuating the market. However, the analyst expected buying pressure on stocks with unique positive factors, including those with potentially good 1Q23 results, could buoy the Thai market.
2) Fed officials divided on how far terminal rates could go
Fed officials are having a divided opinion on how far the terminal rate could go. Atlanta Federal Reserve President Raphael Bostic told CNBC that he expects only one more rate hike of 25 basis points to 5-5.25% before coming to a pause to gauge the impact on the economy.
However, St. Louis Federal Reserve President James Bullard earlier told Reuters that he is inclined to a higher terminal rate between 5.50% and 5.75%, which means three more rate hikes within this year.
3) Major banks in Wall Street reports higher-than-expected 1Q23 results
Last week, JPMorgan reported an adjusted earnings of $4.32 per share vs. $3.41 per share Refinitiv estimate for the first quarter of 2023. Meanwhile, revenue was $39.34 billion vs. $36.19 billion expected.
Yesterday, the Bank of America reported its 1Q23 earnings with EPS of $0.94 per share, beating expectations of $0.83 per share. Revenue was $26.3 billion vs. expectations of $25.28 billion
Goldman Sachs recorded an EPS of $8.79, beating expectations of $8.06 per share. However, revenue was $12.22 billion, missing expectations of $12.66 billion.
