Bangkok, May 20 – Thai stocks closed to the lowest in more than 2 years and 2 months, the baht depreciating almost a month amid political uncertainty in Thailand. on the issue of establishing a government and net selling pressure on foreign Thai stocks and bonds.
Kasikorn Research Center Co., Ltd. reported that Thai stocks closed to the lowest in more than 2 years and 2 months amid traction from both domestic and international factors. with Thai stocks falling since the beginning of the week After investors worried about the policies of the political party that won the election Especially about reducing electricity bills and reducing monopoly problems. which stimulated selling pressure on Big Cap shares Especially in the power and communications sector. In addition, Thai stocks are under additional pressure from concerns over the direction of US interest rates. After several Fed officials' statements did not signal the prospect of a rate cut.
On Friday (May 19), the SET index closed at 1,514.89 points, down 2.98% from the end of last week. While the average daily trading value was 56,210.13 million baht, an increase of 5.14% from the previous week, while the mai index fell 4.15% to close at 480.76 points.
The baht touched the weakest level in almost a month at 34.50 baht per dollar. The baht strengthened to test the level of 33.70 baht per dollar. early in the week after the election In addition, there is a positive factor from Thailand's 1Q23 GDP figure that came out better than the market expected. and foreign investors' net buying in the Thai bond market. However, the baht depreciated for the remainder of the week amid political uncertainty in Thailand regarding government formation. and the net sell pressure of Thai stocks and bonds by foreign investors as well. In addition, Asian currencies as a whole weakened along with the yuan. Which was pressured by concerns about the prospects of economic recovery in China.
On Friday, May 19, 2023, the baht depreciated to test the 34.50 level before closing at 34.38 baht per dollar, compared to 34.00 baht per dollar. On the previous Friday (May 12) for the investment portfolio status of foreign investors between May 15-19, 2023, foreign investors sold net Thai shares of 10,679 million baht and had Net status. Outflows from the Thai bond market 17,741 million baht (net sales 17,671 million baht and debt instruments expire 70 million baht) Next week (22-26 May), Kasikorn Bank sees the movement of the baht at the level of 34.00. -34.60 baht per US dollar
Kasikorn Securities Company Limited views that the Thai stock index has support at 1,500 and 1,475 points, while resistance is at 1,535 and 1,555 points, respectively. Thailand foreign capital direction US debt ceiling problem and political situation in the country Important US economic data, including PMI index for May (preliminary), new home sales. Personal Income and Expenditure PCE/Core PCE Price Index Durable Goods Orders in April - Thai News Agency
Source: Thai News Agency