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23 Sep 2024

Financial Markets

The Baht hit a new 19-month high while the SET rose on Fed’s rate cut

คะแนนเฉลี่ย

•    The SET rose on foreign investors’ purchases in line with other stock markets boosted by the Fed’s rate cut.
        The Thai stock market rose early in the week in line with other regional stock markets amid expectations about the Fed’s rate cut at the upcoming September meeting. Additionally, the Thai bourse was boosted by the offering for public subscription of the Vayupak Fund. The SET later moved within a narrow range pending the FOMC meeting to be held around midweek.
        The SET surged again after the FOMC meeting in line with other regional stock markets, as the Fed cut rate by 50 basis points to 4.75-5.00% and signaled more rate cuts during the rest of this year. Moreover, the SET was boosted by hopes for more economic stimulus from the government. However, the gains were capped at the end of the week as investors already responded to such positive factors for a while. During this week, finance stocks outperformed those of other sectors, while banking and construction material stocks underperformed the broader market.

•    On Friday, September 20, 2024, the SET closed at 1,451.69 points, up 1.92% over-week. The average daily trading value was THB61,479.97 million, down 5.94% over-week. The mai closed at 358.97 points, up 2.10% over-week.

•    September 23-27, 2024, KSecurities expects the SET to have support at 1,440 and 1,420 points, but resistance at 1,465 and 1,475 points, respectively. KResearch views that key matters to watch include Fed officials’ remarks, Thailand’s August Exports and foreign fund flows. The US economic data that warrant close monitoring include September PMI (Flash), August New Home Sales, Durable Goods Orders, PCE/Core PCE Price Index, Personal Income and Outlays, GDP report for Q2-2024 (final), plus Weekly Jobless Claims. Close attention must also be paid to September PMI (Flash) of Eurozone, UK and Japan, plus China’s August Industrial Profits. 

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Financial Markets