Thai Stocks on High Alert: Will the Fed Statement Send the Index Soaring to 1,475 or Plummeting to 1,420
Thai Stock Index Expected to Rise Next Week Amid Fed Statement and Export Figures
Key Factors to Monitor
Kasikorn Securities Company expects Thailand’s stock index next week (September 23-27) to have support levels at 1,440 and 1,420 points, while resistance levels are at 1,465 and 1,475 points, respectively. Key factors to monitor include statements from Fed officials, Thailand’s August export figures, and foreign capital direction. Important US economic data includes the PMI index (preliminary) for September, new home sales, durable goods orders, PCP/Core PCP Price Index, personal income and expenses in August, and GDP numbers for 2Q24 (final), including the number of people applying for weekly unemployment benefits.
Market Performance Last Week
In the past week (September 9-13), Thailand’s stock index rose amid the buying power of foreign investors, in line with the trend of international stock markets accepting the Fed’s interest rate cut trend. Thai stocks rebounded at the start of the week following the direction of regional stocks, amidst speculation about the chances of the Fed cutting interest rates at the September meeting. In addition, there is additional support from the beginning of the subscription to the Vayupak Fund.
Market Rebound
Thailand’s stock index rebounded again after the Fed meeting, in line with the direction of the regional stock market. This is because the Fed has decided to cut interest rates by 0.50% to a range of 4.75-5.00% along with sending signals of continued interest rate cuts in the future. In addition, the domestic stock market is also benefiting from the hope that the government announces measures to stimulate the additional economy as well.
Market Limitations
However, the range up of the Thai stock market became limited at the end of the week, after responding to some positive factors. Stocks in the finance group rose the most this week, while bank stocks and building materials fell in opposition to the whole market.
Market Close
On Friday, September 20, 2024, the SET Index closed at 1,451.69 points, an increase of 1.92% from the level at the end of the previous week. Meanwhile, the average daily trading value was 61,479.97 million baht, down 5.94% from the previous week. The index increased by 2.10% to close at 358.97 points.