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30 Dec 2024

Financial Markets

The Baht strengthened while the SET closed above 1,400 points at the end of the week

คะแนนเฉลี่ย
•    The Thai stock market rose almost throughout the week amid thin transaction volume ahead of year-end.
        The SET surged from the beginning of the week (after having fallen sharply earlier) in line with other regional stock markets as US avoided a government shutdown. The SET was also boosted by year-end purchases of tax savings funds, steady growth in Thailand’s exports for November 2024, and optimistic towards the government’s economic stimulus measures in 2025, which in turn stimulated the purchases of various stocks, led by those in the retail sector.
 
        The SET dropped briefly during the week due to sell-offs of power plant stocks as the NEPC resolved to suspend the purchases of electricity from renewable sources. However, the SET resumed to close above 1,400 points at the end of the week following the boost of window dressing, amid thin transaction volume as investors held off on trading before New Year holidays.
•    On Friday, December 27, 2024, the SET closed at 1,401.46 points, up 2.67% over-week. The average daily trading value was THB31,401.77 million, down 38.01% over-week. The mai closed at 310.10 points, up 2.42% over-week.
•    December 30, 2024 – January 3, 2025, KSecurities expects the SET to have support at 1,385 and 1,375 points, but resistance at 1,410 and 1,420 points, respectively. KResearch advises investors to watch key factors, including year-end Window Dressing and foreign fund flows. The US economic data that warrant close monitoring include Manufacturing ISM/PMI for December 2024, Pending Home Sales for November 2024, plus Weekly Jobless Claims. Close attention must also be paid to Manufacturing PMI for December 2024 of Japan, China and Eurozone.
 
From January 2 to December 27, 2024, the SET closed at 1,401.46 points on December 27, down 1.02% from 1,415.85 points at the end of 2023.
        The SET fluctuated downwardly from the beginning of the year amid various negative factors at home and abroad, including concerns about Thailand’s economic outlook due to the downward revision of Thailand’s 2024 and 2025 GDP growth rates by several agencies, concerns that the Fed would hold rates higher for longer, tensions in the Middle East, particularly between Israel-Lebanon, plus uncertainties surrounding domestic political issues. The SET hit its lowest level in 3 years and 9 months at 1,273.17 points early August before rebounding later in the year.
        Factors that boosted the SET to gradually rise during 3Q-2024 were the smooth vote of a new prime minister and the establishment of the Cabinet, the better-than-expected Thai GDP growth in 2Q-2024, the subscription of Vayupak Fund, policy rate cuts by the FOMC and the BOT’s MPC. However, after reaching the highest level in more than a year at 1,506.82 points during mid-October, the SET gradually pared gains until the end of the year, as the market anticipated a slower pace of Fed’s rate cuts

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Financial Markets