Bangkok, The baht weakens the most in more than a week. Meanwhile, Thai stocks closed positive in the first week of 2024 on the support of news of free Thai-Chinese visas. Kasikorn Bank estimates next week the baht will be at 34.20-34.90 baht/dollar. The Thai stock index has support levels at 1,415 and 1,400 points, resistance levels at 1,440 and 1,455 points. The market is keeping an eye on signals from foreign capital. Fed statement
Kasikorn Research Center (KResearch) summarizes the movement of the baht during the week (2-5 Jan. 2024), reversing to the weakest level in more than 1 week at 34.74 baht/US dollar. The baht depreciated in line with most currencies in Asia. While the dollar Gradually returned to recover. From facing strong selling pressure in the last business week of 2023, along with additional positive factors from the increase in US bond yields. After US economic data came out better than market expectations, such as private sector employment numbers in December and the number of people app
lying for weekly unemployment benefits.
In addition, the dollar also received support. After the minutes of the Fed meeting on December 12-13, 2023, and statements from senior Fed officials reflect that there are signs that interest rate cuts are unlikely to happen quickly. and the US policy interest rate will remain high for some time. To ensure that the Fed US inflation will continue to slow back to target levels.
For the status of foreign investors’ investment portfolios Between 2-5 Jan. 2024, foreign investors net sold Thai stocks of 2,088 million baht, but had a status of Net Inflows into the Thai bond market of 12,537 million baht (net purchases of bonds of 13,038 million baht, deducting expired debt instruments of 501 million baht).
Next week (8-12 Jan. 2024) Kasikorn Bank Looking at the range of the baht’s value movement at the level of 34.20-34.90 baht/US dollar. While the Kasikorn Research Center Evaluate important factors that need to be followed, including signals of foreign capital. and statem
ents from Fed officials Meanwhile, important US economic figures include consumer inflation expectations. Consumer Price Index Producer Price Index for December and the number of people applying for weekly unemployment benefits. In addition, the market is still waiting to follow data on the amount of Yuan-denominated lending. Consumer Price Index China’s December producer price index and the results of the South Korean central bank meeting as well.
Meanwhile, the Thai stock index still stood above 1,400 points in the first week of 2024, with the SET Index closing at 1,427.96 points, an increase of 0.86% from the level at the end of the previous week. The average daily trading value was 46,832.14 million baht, an increase of 31.09% from the previous week. The mai index increased 1.92% to close at 419.50 points.
Thai stocks rebounded sharply on the first business day of the year. Responding to positive factors from the permanent Thai-Chinese visa free measure, which stimulates buying of stocks that benefit fr
om tourism. Especially stocks of airport operators. However, the Thai stock index moved fluctuatingly during the rest of the week. In line with the direction of foreign stock markets. After responding to some positive factors Moreover, the minutes of the Fed meeting did not send a clear signal as to when they would start cutting interest rates. In addition, stocks in the electronic components group dropped. It was affected by the investment weight reduction of one of the major US technology stocks.
For next week (8-12 Jan. 2024), Kasikorn Securities Company Limited sees that the Thai stock index has support levels at 1,415 and 1,400 points, while resistance levels are at 1,440 and 1,455 points, respectively, by Kasikorn Research Center. Evaluate important factors that need to be followed, including the direction of foreign capital. and the gradual announcement of 4th quarter results of 2023 of Thai listed companies. Important US economic data includes import and export data for November 2023, Consumer Price
Index and Producer Price Index for December. 66 includes the number of weekly jobless claims. While other foreign economic data includes retail sales in November 2023 of the Eurozone, as well as the Consumer Price Index and Producer Price Index in December 2023 of China.
Source: Thai News Agency