Summary of Thai Baht Movements

  • The Thai Baht reached its strongest level in six weeks at 32.61 Baht per Dollar, rebounding due to technical buying and market position adjustments while awaiting the Fed Chair's speech from the annual Fed meeting in Jackson Hole to assess signals regarding a slowdown in QE measures. Additionally, the Baht benefited from capital inflows reflected in net purchases of Thai bonds and stocks by foreign investors during the week, amid expectations that the COVID-19 situation might be easing compared to previous concerns.
  • On Friday (August 27), the Baht was at 32.63 Baht per Dollar, compared to 33.38 Baht per Dollar the previous Friday (August 20).

For the upcoming week (August 30 - September 3), Kasikorn Bank forecasts the Baht's movement range at 32.50-33.00 Baht per Dollar, while the Kasikorn Research Center highlights key factors to monitor, including the domestic COVID-19 situation and the Bank of Thailand's July economic and financial report. Important U.S. economic data includes non-farm payrolls, private sector employment from ADP, PMI and ISM indices for the manufacturing/services sectors in August, consumer confidence index for August, pending home sales, factory orders for July, and weekly unemployment claims. Additionally, the market is awaiting the PMI indices for the manufacturing/services sectors in August from China and the Eurozone, as well as the U.S. and Western nations' stance on the situation in Afghanistan.

Summary of Thai Stock Market Movements

  • The Thai stock market returned above 1,600 points, with the SET index closing at 1,611.20 points, up 3.74% from the previous week, while the average daily trading value was 96,981.52 million Baht, an increase of 20.40% from the prior week. The mai index rose 3.61%, closing at 521.63 points.
  • Thai stocks increased throughout the week due to buying from foreign and domestic institutional investors, responding to hopes of easing economic activity restrictions as the number of infections in the country stabilized. Notably, Thai stocks gained momentum towards the end of the week after the CCSA decided to relax some lockdown measures. The banking and non-bank sectors saw the most significant gains this week, supported by the Bank of Thailand's measures to encourage financial institutions to provide additional assistance to borrowers.

For the upcoming week (August 30 - September 3), Kasikorn Securities Co., Ltd. anticipates support levels for the Thai stock index at 1,595 and 1,585 points, while resistance levels are at 1,615 and 1,635 points, respectively. The Kasikorn Research Center assesses key factors to monitor, including the COVID-19 situation both domestically and internationally, the easing of economic activity restrictions in the country, and domestic political issues. Important U.S. economic data includes the PMI indices for manufacturing/services, non-farm payroll figures, and the unemployment rate for August. Other foreign factors include the PMI indices for manufacturing/services in August from China, Japan, and the Eurozone, the preliminary consumer price index for August, and the producer price index for July in the Eurozone, as well as Japan's retail sales figures for July.


 

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