MPC meeting next week likely to influence SET and baht
The outcome of the Monetary Policy Committee (MPC) meeting on March 24 could determine the direction of the Stock Exchange of Thailand (SET) and the baht next week, experts at Kasikornbank said on Sunday.
Kasikorn Securities said the SET Index's support line is between 1,530 and 1,550 points, while its resistance line is between 1,575 and 1,585 points.
The securities company advised investors to follow the MPC meeting, Thailand's political situation, the US bond yield direction, the Covid-19 situation and US-China relations.
"US economic data that warrants close monitoring include new home sales, durable goods orders, consumer spending and manufacturing and services Purchasing Managers Index [PMI]," Kasikorn Securities said.
"Other important factors that warrant close monitoring include the euro-zone's manufacturing and services PMI."
The SET Index closed at 1,563.96 on Friday, down 4.86 points or 0.31 per cent. Total transactions amounted to Bt88.71 billion with an index high of 1,566.67 and a low of 1,554.96.
Meanwhile, Kasikornbank forecast the baht would move between 30.70 and 31.10 to the US dollar next week.
The bank advised investors to follow the MPC meeting outcome, Thai February exports, US Federal Reserve chairman's statement, US bond yield direction and Covid-19 outbreak.
"US economic data that warrants close monitoring include home sales, durable goods orders, consumer spending, inflation rate based on Core Personal Consumption Expenditure Price Index, Consumer Confidence Index, gross domestic product in the fourth quarter of 2020, weekly jobless claims and PMI," Kasikornbank said.
"Other important factors that warrant close monitoring include China's Loan Prime Rate, plus euro-zone and UK PMI."
The baht closed at 30.83 to the dollar on Friday, weakening from 30.79 on Friday last week.
