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22 May 2023

Financial Markets

The Baht weakened while the SET dropped sharply over-week


        The Thai stock market closed at the lowest level in more than 2 years, pressured by both the domestic and international factors. The SET dropped from the beginning of the week as investors were worried about the policies of the political party that won the election, particular the reduction of electricity bills and monopoly power. Such concerns led to the sell-offs of large-cap stocks, especially those in the power plant and communication sectors. Moreover, the SET was pressured by concerns over the US interest rate outlook, as Fed officials did not signal the possibility of any rate cut. However, the SET rebounded briefly during the week before dropping again at the end of the week while waiting for the progress of the formation of a new government. Foreign investors remained a net selling position of Thai stocks.       
        On Friday, May 19, 2023, the SET closed at 1,514.89 points, down 2.98% over-week. The average daily trading value was THB56,210.13 million, up 5.14% over-week. The mai closed at 480.76 points, down 4.15% over-week.
        May 22-26, 2023, KSecurities expects the SET to have support at 1,500 and 1,475 points, but resistance at 1,535 and 1,555 points, respectively. KResearch views that key matters to watch include Thailand’s April Exports, foreign fund flows, US debt ceiling issues, and domestic political issues. The US economic data that warrant close monitoring include May PMI (Flash), April New Home Sales, Personal Income and Outlays, PCE/Core PCE Price Index, Durable Goods Orders, FOMC minutes, plus GDP report for 1Q2023. Close attention must also be paid to China’s May LPR, Japan’s and Eurozone’s May PMI (Flash), and UK April CPI and PPI.

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Financial Markets