Virus outbreak seen pulling stocks and baht down

The baht during the week January 27 to 31 moved in the range of Bt30.62 to Bt31.28 per US dollar, and closed at Bt30.14. Its value has decreased continually since the outbreak of the Wuhan coronavirus affected sharply Thailand’s tourism.
Recently, the coronavirus was declared an international public health emergency by the World Health Organisation, causing stock indexes around the world to drop, as investors decided to play safe in this situation.
Meanwhile, yields on government bond decreased after investors held on to more of them.
CIMB Thai predicted that the baht next week would move between Bt30.90 to Bt31.90 to the US dollar, and advised investors to monitor the virus situation, as well as the meeting of the central bank's Monetary Policy Committee on February 5.
The SET Index on Friday (January 31) closed at 1,514.14 points, down 9.85 points or 0.65 per cent, with Bt56.329 billion worth of shares traded.
Capital Nomura Securities forecast that the index would move sideways down, since the market is under pressure from the coronavirus outbreak and announcement of listed companies’ financial results.
Other factors affecting the SET Index were the censure debate on the government, and the government’s 2020 budget bill.
Capital Nomura predicted the index’s range next week at between 1,485 to 1,548 points.
Gold price closed the week at US$1,576.50 per ounce, while the price in Thailand increased to Bt23,200 per baht weight.
YLG Bullion International said that the coronavirus outbreak had boosted the gold price, and estimated support in the future at between US$1,569 to 1,560 per ounce.
The company suggested that investors buy gold for speculation if its price was not lower than the support, and to sell the gold when the price reaches the resistance of US$1,589 per ounce.