THURSDAY, March 28, 2024
nationthailand

Political rallies could drag SET down, say analysts

Political rallies could drag SET down, say analysts

Investors in stocks should follow political developments both at home and abroad, as it could pressure the Stock Exchange of Thailand (SET) Index next week, market analysts said.

The baht this week (September 7 to 11) moved between Bt31.23 and Bt31.46 against the dollar before closing at Bt31.32 and Bt31.33.

The baht strengthened against the dollar as the US Federal Reserve looked set to maintain the interest rate at nearly zero in the long term after Fed chairman Jerome Powell announced a plan to raise inflation to support the US labour market and economy. This caused a weakening of the dollar compared to other major currencies.

An analyst at CIMB Thai Bank expected the baht to move between Bt31.00 and Bt31.50 next week against the dollar, adding that several central banks would hold meetings next week, such as the Fed (September 15-16), the Bank of Japan (September 16-17) and the Bank of England (September 17).

The SET Index on Friday (September 11) closed at 1,279.96, down 10.93 points or 0.85 per cent, while total transactions amounted to Bt44.155 billion.

An analyst at Tisco Securities expected the index next week to remain in negative territory between 1,260 and 1,300 due to political pressure both domestic and international.

"In Thailand, student protesters will hold a large political rally next Saturday. Investors were concerned that it would prolong and intensify," the analyst said. "In foreign countries, we have to follow US-China tensions and the number of Covid-19 cases, so investors should be careful while investing."

The price of gold on Saturday (September 12) was US$1940.50 per ounce while the price in Thailand was Bt28,700 per baht weight.

An analyst at YLG Bullion International said the price of gold would fluctuate sideways in the short term, advising investors to buy gold when the price dropped to the support line between $1,936 and $1,927 per ounce and take profit when the price rises to the resistance level between $1,956 and $1,966 per ounce.

"If the price drops below the support line, investors should wait to buy gold when the price drops to the next support line at $1,906 per ounce," the analyst said.

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