Outcome of MPC meeting to influence SET, baht next week
Investors have been advised to keep an eye on the Monetary Policy Committee (MPC) meeting on December 23, as it would impact the Stock Exchange of Thailand (SET) Index and the baht next week.
The SET Index on Friday closed at 1,482.38, down 1.51 points or 0.10 per cent, with transactions amounting to Bt117.09 billion due to uncertainty over the US move to impose lockdown measures during the Christmas festival period.
Local institutions and foreign investors made net sales of Bt3.63 billion and Bt5.60 billion respectively, while proprietary trading and local individuals made net buys of Bt57.12 million and Bt9.18 billion respectively.
An analyst at Kasikorn Securities expected the SET next week to move between 1,465 and 1,500, advising investors to follow the MPC meeting, Thai exports in November, the Covid-19 situation, the US-China conflict and Brexit negotiations.
Among international factors, he advised following the US third-quarter gross domestic product (GDP), home sales, personal income and durable good orders, as well as China's loan prime rate and Bank of Japan's meeting.
The baht on Friday closed at 29.80 to the US dollar on Friday, strengthening from 30.03 at close on December 9, due to the US move to place Thailand on its monitoring list for currency manipulation and the Federal Reserve’s move to maintain bond purchases.
A strategist at Kasikornbank expected the baht next week to move between 29.60 and 30.00 to the dollar, advising investors to follow the MPC meeting, foreign funds flows, Thailand's exports in November and the US economic stimulus package.
Among international factors, he advised investors to follow the US consumer confidence index, third-quarter GDP, home sales, personal income, durable good orders and inflation rate.
Gold on Friday closed at US$1,882.17 per ounce, while in Thailand it closed at Bt26,640 per baht weight amid the US-China conflict and the rollout of US economic stimulus package.
A strategist at YLG Bullion International advised investors to buy gold when its price drops and sell some of the precious metal when its price rises, with the support line between $1,853 and $1,866 per ounce.
"If the price rises over the resistance line at $1,899 per ounce, investors can wait to sell at the next resistance line," he said.
