Thursday, October 22, 2020

Negative factors likely to influence baht, SET next week

Sep 26. 2020
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By The Nation

Various domestic and international negative factors would pressure the baht and stock market next week, experts said.

The baht weakened against the dollar this week (September 21-25), as domestic and international factors caused uncertainty among investors.

An analyst at CIMB Thai Bank expected the baht next week to move between 31.30 and Bt31.80 against the dollar.

"Next week, the Bank of Thailand will report the country's economic indicators in August, while there are many factors that investors will need to follow, such as the Covid-19 situation that has not been resolved, US politics with the presidential election approaching, and trade negotiations between the United Kingdom and the European Union," the analyst said.

The Stock Exchange of Thailand Index on Friday (September 25) closed at 1,244.94, down 2.52 points or 0.20 per cent, while total transactions amounted to Bt45.62 billion.

An analyst at Kasikorn Securities expected the index next week to move between 1,238 and 1,280 due to lack of new positive sentiment both domestic and international.

"Meanwhile, the index would be under pressure from the delay in the development of a Covid-19 vaccine and commercial banks' third-quarter performance," the analyst said.

Gold price on Saturday was quoted at US$1,860.50 per ounce, while the price in Thailand was Bt27,850 per baht weight.

An analyst at YLG Bullion International advised investors to beware of mass sell-offs if the price cannot rise over the resistance line between $1,876 and $1,890 per ounce.

"Investors can sell some of the metal to reduce risk and buy back when the price drops to the support line between $1,847 per ounce," the analyst said.

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