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12 Dec 2022

Financial Markets

The Baht weakened after Fed remained hawkish in taming inflation while the SET continued to drop


        The Thai stock market dropped during the second half of the week. The SET index rose early to midweek on purchases of domestic institutional investors and foreign investors and boosted by the lower-than-expected US inflation rate. However, the SET index dropped during the rest of the week in line with other stock markets after the results of the Fed meeting came out. Although the Fed reduced the size of its rate hikes as expected, it signaled to keep raising rates through 2023. Meanwhile, concerns over the global economic outlook also put pressure on the SET, causing sell-offs across all sectors, especially energy, finance and technology.       
        On Friday, December 16, 2022, the SET closed at 1,619.01 points, down 0.25% over-week. The average daily trading value was THB59,325.77 million, up 12.00% over-week. The mai closed at 571.03 points, down 1.78% over-week.
        December 19-23, 2022, KSecurities expects the SET to have support at 1,610 and 1,600 points, but resistance at 1,640 and 1,650 points, respectively. KResearch views that key matters to watch include the deliberation of stimulus measures as New Year’s gifts, foreign fund flows, plus COVID-19 in China. The US economic data that warrant close monitoring include November Housing Starts, New Home Sales, Existing Home Sales, Personal Income and Outlays, Durable Goods Orders, PCE/Core PCE Price Index, plus GDP report for 3Q2022. Close attention must also be paid to the upcoming BOJ meeting, Japan’s November CPI, China’s December LPR, plus UK GDP report for 3Q2022.

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Financial Markets