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29 May 2023

Financial Markets

The Baht continued to weaken while the SET rose over-week


        The Thai stock market rose over-week despite paring gains somewhat at the end of the week. The SET surged early in the week due to the stock buyback after having fallen sharply earlier. Additionally, investors were less concerned about domestic political issues, as the MOU to form a coalition government became clearer. Banking stocks outperformed other stocks on the likelihood that the MPC will raise its policy at the meeting scheduled for May 31. However, the SET pared gains at the end of the week as investors shifted their focus to domestic political issues and US debt ceiling talks. In addition, energy stocks dropped in line with the falling global oil prices, following the news of  no further output cuts agreed by OPEC+ at its upcoming meeting.       
        On Friday, May 26, 2023, the SET closed at 1,530.84 points, up 1.05% over-week. The average daily trading value was THB47,456.70 million, down 15.57% over-week. The mai closed at 484.38 points, up 0.75% over-week.
        May 29 – June 2, 2023, KSecurities expects the SET to have support at 1,520 and 1,500 points, but resistance at 1,545 and 1,555 points, respectively. KResearch views that key matters to watch include the BOT’s MPC meeting (May 31), foreign fund flows, US debt ceiling issues, and domestic political issues. The US economic data that warrant close monitoring include May ADP Employment Report, Non-farm Payrolls, Unemployment Rate, Manufacturing PMI.  Close attention must also be paid to May Manufacturing PMI of China, Japan and Eurozone, plus Eurozone’s May CPI (Flash).

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Financial Markets