Slew of foreign data to impact SET and baht next week
Investors have been advised to follow key domestic and international developments as a mix of these would impact the Stock Exchange of Thailand (SET) Index, the baht and gold price next week.
The baht on Friday closed at 30.15 to the US dollar on Friday, strengthening from 30.29 last week due to mass sell-offs of the greenback amid hopes of a Covid-19 vaccine and the US Federal Reserve's signs of quantitative easing.
A strategist at Kasikorn Research Centre expected the baht next week to move between 30.00 and 30.40 to the dollar, advising investors to follow the Bank of Thailand (BOT)'s measures to shepherd the baht, foreign funds flows, the domestic political situation and the Covid-19 outbreak.
Among international factors, he advised investors to follow the US inflation rate in November, the US weekly jobless claims, the US consumer confidence index in December, the European Central Bank meeting, the EU Summit and China's economic data for November.
The SET Index on Friday closed at 1,449.83, up 0.84 per cent from the previous week, while transactions amounted to Bt88.5 billion, down 8.33 per cent from the previous week, on the back of positive news of a Covid-19 vaccine, rising oil price after Opec+ decided to extend the cap on oil production and the BOT's move to amend regulations on eligibility criteria for regulatory capital.
The Market for Alternative Investment closed at 331.18, up 0.99 per cent from the previous week.
An analyst at Kasikorn Securities expected the SET next week to move between 1,430 and 1,485, advising investors to follow the Covid-19 outbreak, Thailand's political situation, the Covid-19 crisis, Brexit and the Opec+ meeting, the ECB meeting, US-China relations and Brexit.
Among international factors, he advised following US consumers' and producers' price indices in November, the euro-zone and Japan's third-quarter gross domestic product and China's economic data in November.
Gold price on Friday closed at US$1,842.02 per ounce, while in Thailand it closed at Bt26,390 per baht weight.
An analyst at YLG Bullion International said there was limited upside for the metal amid the conflict between the US and China.
He advised investors to buy gold when its price rises over the support line between $1,815 and $1,829 per ounce as the price would rise to the resistance line between $1,847 and $1,864 per ounce.
"Meanwhile, investors should pay attention to their investment, as the Thailand Futures Exchange market is closed until Monday," he said.
