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Slew of foreign data to impact SET and baht next week


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Slew of foreign data to impact SET and baht next week

By The Nation

 

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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.

 

Source: https://www.nationthailand.com/business/30399154

 

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-- © Copyright The Nation Thailand 2020-12-06
 
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3 hours ago, sammieuk1 said:

My guess is a massive swing in the bahts value of between +000.1 to -000.1 satang in line with unexplained forces 🤔

Massive alright !!! Massive buying of the $ ..and then let it 'drift up' to 33bt .. "that will do nicely .."

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A nice devaluation of the Baht would be good, maybe the the exports will come down in price and allow the companies to start being profitable again. Just glad I sent the USD to here like I did back in April to fund my 800K FD account.  Had I to do it now I would be looking at it costing me more.

Edited by ThailandRyan
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13 minutes ago, ThailandRyan said:

Just glad I sent the USD to here like I did back in April to fund my 800K FD account.  Had I to do it now I would be looking at it costing me more.

If FD stands for foreign deposit account, and the USD stay in the account and are used for a retirement extension, it doesn't make a difference. If the Baht get stronger against the USD, your 800K in April may not be 800K anymore today

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5 minutes ago, Susco said:

If FD stands for foreign deposit account, and the USD stay in the account and are used for a retirement extension, it doesn't make a difference. If the Baht get stronger against the USD, your 800K in April may not be 800K anymore today

Fixed Deposit account, what I sent back then was 25K USD and I obtained 800K Thb which i placed into a KBank fixed deposit account making a paltry interest rate.  However, if  I had to do it now the same transfer would cost me 26.4K to transfer in for the same 800K Thb

Edited by ThailandRyan
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10 hours ago, rooster59 said:

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.

I'll wait, watch and do nothing.

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3 minutes ago, Isaan sailor said:

Vietnam doesn’t seem to have the same currency fluctuations.  And they have a booming economy.  

 

Because the Dong is pegged to the Dollar, same as the baht was till 1997.

 

Before 1997 the Baht > US$ exchange rate was also very stable, but I'm sure you know what happened in 1997

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6 minutes ago, Susco said:

 

Because the Dong is pegged to the Dollar, same as the baht was till 1997.

 

Before 1997 the Baht > US$ exchange rate was also very stable, but I'm sure you know what happened in 1997

Yes the peg was set quite high, I believe—25 Baht to the USD?  Anyway, I’ll take my chances with a free—floating Baht.  Just hope it sinks more that it floats.

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13 hours ago, sammieuk1 said:

My guess is a massive swing in the bahts value of between +000.1 to -000.1 satang in line with unexplained forces 🤔

Hate insider dealing......how do you know all this???

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14 hours ago, rooster59 said:

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.

 

Blimey, that's a bit shoddy, he didn't include the motions of the stars and planets, or the outcome of an ox-ploughing ceremony. How can he hope to get it right, lol? 

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43 minutes ago, Susco said:

 

Because the Dong is pegged to the Dollar, same as the baht was till 1997.

 

Before 1997 the Baht > US$ exchange rate was also very stable, but I'm sure you know what happened in 1997

Comparing Vietnam’s peg to USD—23,000 Dong, to Thailand USD peg—25 USD? Is night and daylight comparison. Vietnam is booming with their low peg.  Thailand had sluggish economy with the high peg.

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