Kasikorn Research Center Co., Ltd. Weekly summary of money market and capital markets (3-6 May 2022) Summary of the movement of the baht. The baht faced selling pressure most of the week. The baht hit the lowest level in five years at 34.54 baht per dollar. At first it was consistent with the Asian currency as a whole.
while the dollar Appreciated as the US bond yield rose. Before the Fed meeting, however, the baht appreciated briefly. amid dollar sales to make a profit following the outcome of the Fed meeting Although the Fed raised interest rates by 0.50% to a range of 0.75-1.00% as expected, it signaled no acceleration in interest rate hikes considering the potential impact on the US economy.
However, the baht weakened once more at the end of the week following net selling of foreign Thai bonds. and some markets came back to assess that The Fed may have to speed up interest rate control in June. To extract US inflation On Friday (May 6) the baht closed at 34.35 baht per dollar. compared to 34.25 baht per dollar On the previous Friday (29 Apr), while between May 2-6, foreign investors sold net Thai shares 2,543.2 million baht and had a status of NET OUTFLOW, leaving the bond market 6,971.2 million baht (come from net sales of bonds of 6,940.3 million baht and expired debt securities of 30.9 million baht)
For the next week (May 9-13), KASIKORNBANK sees the movement of the baht at 33.80-34.80 baht per dollar. While the Kasikorn Research Center assesses key factors that need to be monitored, including statements from Fed officials. Ukraine-Russia situation and the direction of foreign capital
while the important US economic numbers are the consumer price index. Producer Price Index April import/export price index Consumer Confidence Index May (preliminary) and the number of weekly unemployment benefits claims
In addition, the market is still waiting for the April economic data. of China, such as exports, consumer price index Producer Price Index and new loans in RMB currency
Summary of the movement of the Thai stock market Thai stocks fell throughout the week. It faced selling pressure from foreign investors before the Federal Reserve’s (Fed) monetary policy meeting and continued to fall in international stock markets for the remainder of the week.
The Fed raised the policy rate by 0.50%, in line with market expectations. and the Fed chairman confirmed that It has yet to consider raising interest rates as much as 0.75%, but the overall investment climate still faces pressure from concerns over the prospect of raising interest rates to curb US inflation. Going forward, on Friday (May 6) the SET index closed at 1,629.58 points, down 2.27% from the previous week. The average daily trading value was 72,389.74 million baht, down 4.35% from the previous week, while the mai index fell 6.28% to close at 627.78 points.
For the next week (May 9-13), Kasikorn Securities Company Limited views that the Thai stock index has support at 1,615 and 1600 points, while resistance is at 1,645 and 1,660 points, respectively, by the Kasikorn Research Center. Important factors to be monitored include the COVID-19 situation. direction of foreign capital The tense situation between Russia and Ukraine, including the results of the first quarter of 2016
The important US economic data is the consumer price index. April Producer Price Index and the number of weekly unemployment claims while other foreign factors include international trade data. and consumer price index in April of china
