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4 Dec 2023

Financial Markets

The Baht pared gains somewhat after hitting its 4-month high while the SET continued to drop over-week


        The Thai stock market continued to drop over-week. The SET rose briefly early in the week on the falling US bond yields before gradually dropping during the rest of the week. The SET was dragged by negative factors, including concerns over Thailand’s economic outlook (after the BOT’s MPC cut Thailand’s GDP growth forecast for both this year and next year although the policy rate was kept steady at 2.5%), and MSCI rebalancing that took effect on November 30, plus net selling of foreign investors. In addition, the continued sell-offs of stocks of an airport business operator also put pressure on the SET this week.        
        On Friday, December 1, 2023, the SET closed at 1,380.31 points, down 1.23% over-week. The average daily trading value was THB47,744.16 million, up 30.39% over-week. The mai closed at 397.61 points, down 0.64% over-week.

        December 4-8, 2023, KSecurities expects the SET to have support at 1,375 and 1,360 points, but resistance at 1,400 and 1,410 points, respectively. KResearch views that key matters to watch include Thailand’s November CPI and foreign fund flows. The US economic data that warrant close monitoring include November Services ISM/PMI, ADP Employment Report, Non-farm Payrolls and Unemployment Rate, plus Weekly Jobless Claims. Close attention must also be paid to November Services PMI of China, Japan and Eurozone, Eurozone’s and Japan’s GDP report for 3Q2023, plus China’s November Exports and Imports.

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Financial Markets