Thursday, August 13, 2020

SET vulnerable to swings from external factors, MPC decision

Aug 01. 2020
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By The Nation

Experts are advising investors to keep an eye on the Covid-19 pandemic, the US president's moves before the presidential election, and the Thai Monetary Policy Committee (MPC)'s meeting, as they could affect the Stock Exchange of Thailand (SET) Index and the price of gold next week.

The SET Index on Friday (July 31) closed at 1,328.53, up 12.79 points or 0.97 per cent, while total transactions stood at Bt61.280 billion.

A stock analyst at Phillip Securities (Thailand) expected the index next week to fluctuate between 1,280 and 1,340.

"We expect the market to gain positive sentiment, but negative sentiments, such as the Covid-19 pandemic and the US president's moves before the presidential election would pressure the index," the analyst said.

"Besides, we expect the MPC to maintain the interest rate at a low level during the meeting next week."

The price of gold yesterday stood at US$1,976.67 per ounce, while the price in Thailand was Bt29,100 per baht weight.

A gold analyst at YLG Bullion International said investors could buy gold for short-term speculation or sell some gold to take profits to cope with market volatility.

"If gold price does not drop below the support level between $1,954 and $1,959 per ounce, the price would rise to the resistance level between $1,984 and $2,000 per ounce," the analyst said.

"However, investors should beware of mass sell-offs in gold if the price rises to the resistance level."

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