• Thai stocks rose from last week despite weekly volatility. While there is still support from foreign capital inflows continuously.
Summary of the movement of the baht
The baht moved volatilely while waiting for the Fed chairman’s statement. The baht hit its lowest level in regarding three weeks at 36.33 baht per dollar. Initially, amid the depreciation of Asian currencies and the yuan. After the People’s Bank of China increased its monetary easing by cutting the LPR interest rate to alleviate the pressure on the real estate market and the overall Chinese economy. In addition, the dollar move up in the direction of US bond yield Amid speculation regarding the outlook for the Fed’s interest rate hikes which may be more than 50 bps.
The baht appreciated for a short period of time. During the week, following preliminary PMI data for August and new home sales in July of the US that came out weaker than the market expected This pushed the dollar to weaken, however, the baht turned to depreciate once more at the end of the week. Markets await the Fed Chair’s statement at the Fed’s annual conference in Jackson Hole.
On Friday, August 26, 2022, the baht closed at 36.00 baht per dollar. compared to the level of 35.67 baht per US dollar On the previous Friday (Aug. 19), while between August 22-26, foreign investors continued to buy a net of Thai stocks for another 9,349 million baht, but had a NET OUTFLOW status, leaving the bond market 6,355 million. Baht (net selling bonds of 755 million baht and having expired debt securities of 5,600 million baht)
Next week (29 Aug.-2 Sep.), Kasikorn Bank looks at the baht movement frame at 35.50-36.30 baht per dollar. Meanwhile, the Kasikorn Research Center assesses the key factors that must be monitored, namely foreign capital flows. and the July salary economy report of Thailand, while the important US economic numbers are the number of non-farm payrolls. unemployment rate Private sector employment data from ADP and PMI/ISM in the manufacturing sector for August. Job opening numbers and labor turnover rate for July June house price index and the number of weekly unemployment benefits claims The market is also waiting for the Eurozone’s August Manufacturing and Inflation PMI (preliminary) as well as the August Manufacturing/Services PMI. of China as well
Summary of the movement of the Thai stock market
The Thai stock market swayed upward throughout the week. The SET Index initially declined as international stock markets faced pressure from the trend of rising US interest rates. Thai stocks later rebounded following the buying of foreign investors before Thailand Focus, while domestic political factors had not put much pressure on Thai stocks. However, the SET’s uptrend was partially offset by the end of the week as markets await the statement from the Fed Chair at the annual meeting in Jackson Hole. Among the biggest gains this week were energy and banks. (This was driven by the cancellation of a major bank digital asset acquisition deal.)
On Friday (Aug 26), the SET index closed at 1,644.78, up 1.16% from the previous week. The average daily turnover stood at 71,450.31 million baht, down 3.86% from the previous week, while the mai index rose 2.91% to close at 642.97 points.
For the next week (29 Aug.-2 Sep.), Kasikorn Securities Co., Ltd. sees the SET index at support at 1,640 and 1,605 points, while resistance at 1,665 and 1,690 points, respectively. The Kasikorn Research Center assesses the key factors that need to be monitored, namely, the direction of foreign funding. including domestic political issues The important US economic data are the ISM/PMI index, manufacturing sector, private sector employment numbers. Non-agricultural employment numbers and the unemployment rate in August while other foreign factors are the Producer Price Index in July. and consumer price index in August (preliminary) of the eurozone, including the August manufacturing PMI of the eurozone. China and Japan
