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3 Mar 2025

Financial Markets

The Baht weakened while the SET fell below 1,200 points at the end of the week

คะแนนเฉลี่ย

•    The Thai stock market dropped for five consecutive weeks to below 1,200 points, its lowest in nearly 5 years at the end of the week.
        The SET tumbled from the beginning of the week, pressured by profit-taking in individual stocks, especially those of a real estate company whose performance report was poor and announced a spin-off plan, raising concerns among investors. The SET was also dragged by concerns about trade conflicts as President Donald Trump ordered to restrict Chinese investments in strategic areas and said the delayed tariffs on Canada and Mexico would go forward as planned, plus sell-offs of matured LTFs.
        However, the SET rose briefly around the middle of week after the BOT’s MPC unexpectedly decided to reduce the policy rate by 25 basis points, leading to short-term buying across all sectors except banking stocks. The SET then tumbled again during the remainder of the week in line with other regional bourses and hit its lowest in nearly 4 years and 11 months at 1,186.36 points at the end of the week. This decline was driven by concerns over the impact of the trade war, after the US confirmed that the proposed 25% tariffs on Canadian and Mexican goods will take effect on March 4, along with an extra 10% tariffs on Chinese imports on the same day. Earlier, US threatened to impose 25% tariffs on EU imports. In addition, the SET was weighed by investors’ sell-offs for portfolio adjustment following the MSCI rebalance that took effect on February 28, 2025.
 
•    On Friday, February 28, 2025, the SET closed at 1,203.72 points, down 3.41% over-week. The average daily trading value was THB57,150.99 million, up 9.40% over-week. The mai closed at 255.95 points, down 5.38% over-week.
•    March 3-7, 2025, KSecurities expects the SET to have support at 1,185 and 1,175 points, but resistance at 1,215 and 1,230 points, respectively. KResearch advises investors to watch key factors, including Thailand’s February Inflation, Fed officials’ remarks, policies of US president Donald Trump, and foreign fund flows. The US economic data that warrant close monitoring include February Manufacturing and Services ISM/PMI, ADP Employment Report, Non-farm Payrolls and Unemployment Rate, plus Weekly Jobless Claims. Close attention must also be paid to the upcoming ECB meeting, February Manufacturing and Services PMI of Japan, China, Eurozone and UK, Eurozone’s February Inflation (Flash) and GDP report for 4Q-2024, and China’s Exports and Imports for January-February.

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