The Baht hit an over 1-week low while the SET dropped on sell-offs by foreign investors

• The SET dropped due to negative factors at home and abroad after surging for four consecutive weeks.

         The Thai stock market dropped throughout the week amid net selling orders of foreign investors. It faced negative factors at home and abroad, including concerns about Thai economic outlook (after the NESDC lowered its growth projection for Thai GDP for 2024 from 2.2-3.2% to 2-3%), concerns about domestic political issues and expectations that the Fed would hold rates higher for longer after Fed’s officials expressed concerns towards US inflation, while US economic data such as May Manufacturing and Services PMI came out better than expected. The said negative factors caused profit-taking in all sectors, led by energy, real estate and finance.

• May 27-31, 2024, KSecurities expects the SET to have support at 1,350 and 1,340 points, but resistance at 1,375 and 1,385 points, respectively. KResearch views that key matters to watch include Fed officials’ remarks and foreign fund flows. The US economic data that warrant close monitoring include GDP report for 1Q-24 (Second Estimate), April Pending Home Sales, Personal Income and Outlays, and PCE/Core PCE Price Index, plus Weekly Jobless Claims. Close attention must also be paid to Eurozone’s May Inflation (Flash), China’s April Industrial Profits and May Manufacturing and Services PMI, plus Japan’s April Retail Sales and Industrial Production.