The baht fluctuates While Thai stocks closed close to the previous week.
The baht fluctuates While Thai stocks closed close to the previous week.
• The baht moved volatilely. The depreciation was initially followed by the yuan due to concerns over COVID in China. before partially recovering amid selling pressure on the dollar from the Fed’s tendency to slow the rate of interest rate rises
• The SET Index moved in a narrow range almost throughout the week. before shrinking at the end of the week After no support from new factors In addition, the market began to worry about the COVID situation.
Summary of the movement of the baht
The baht moved in a volatile range. Between 21-25 Nov. The baht depreciated at the start of the week. (Although Thailand’s 3Q22 GDP came out better than expected) in line with global gold prices and movements in Asian currencies, led by the yuan, which was under pressure from concerns about the economic outlook and measures . In addition, the net selling pressure of foreign investors on Thai bonds is also a negative factor for the baht. The Fed meeting on 1-2 November reinforces the likelihood that the Fed will slow down the rate increase in December. this
Thai baht appreciation framework narrows again The baht depreciated slightly at the end of the week in line with the yuan. After China’s central bank cut the reserve ratio of commercial banks to help support the economy. While the market is waiting for the signal of monetary policy from the MPC meeting. Including the Fed chairman’s speech at the end of November.
On Friday, November 25, 2022, the baht closed the market at 35.82 baht per dollar. Compared to the level of 35.76 baht per dollar. On the previous Friday (November 18) for the investment portfolio status of foreign investors between November 21-25, 2022, foreign investors bought net Thai shares of 5,388 million baht and had a Net status. Outflows from the bond market totaled 11,666 million baht, with net sales of bonds of 8,775 million baht, while 2,891 million baht of debt instruments matured.
Next week (November 28-December 2), Kasikornbank sees the baht moving at 35.25-36.25 baht per dollar. Although the Kasikorn Research Center assesses important factors to monitor, including the Fed Chairman’s statement Results of the MPC meeting Thailand’s economic, financial and export data for October. While important US economic numbers include consumer confidence index, manufacturing PMI/ISM index, non-farm payroll numbers. and the unemployment rate in November. awaiting contract sales, PCE/Core PCE Price Index for October, 3Q22 GDP (preliminary.) and the Fed’s Beige Book report. Markets are also awaiting the Manufacturing/Service sector PMI Nov. China, Asian currency trends and capital flows are also moving.
Summary of movements in the Thai stock market
Thailand’s stock market closed near the end of the previous week. However, the SET Index fluctuated in a narrow range at the start of the week. Despite the supporting factor of Thailand’s GDP figure in the 3rd quarter of 2022 which came out better than the market expected. due to selling pressure on energy stocks in line with a drop in global oil prices and technology stocks After the news of the cancellation of a telecommunications company’s tender offer, however, Thai stocks rose midweek. Following the buying pressure in energy stocks after OPEC denied rumors of increasing production. before shrinking again at the end of the week due to a lack of new factors to support them along with the increasing number of COVID-19 infections, raising concerns about the COVID situation
On Friday (November 25), the SET index closed at 1,620.84 points, up 0.21% from the end of last week. Although the average daily trading value was 51,425.24 million baht, down 15.33% from the previous week, the index fell 3.04% to close at 582.43 points.
For the next week (28 November – 2 December), Kasikorn Securities Co, Ltd sees the Thai stock index as having support at 1,600 and 1,580 points, while the resistance is at 1,640 and 1,660 points, respectively. The Kasikorn Research Center assesses important factors to monitor, including the MPC meeting. (Nov. 30), including foreign capital direction Important US economic data, including 3Q22 GDP, PCE/Core PCE Price Index, personal income and expenses for October. Private Employment Data ADP Non-Farm Employment Numbers The unemployment rate and the ISM/PMI manufacturing index in November, while other foreign factors include the consumer price index in November. (Preliminary) and Producer Price Index for October, Eurozone Manufacturing PMI for November, China and Japan. including industrial production in October from Japan
