Thai Stock Market Plunges, Future Outlook Uncertain
The Thai stock market experienced a important downturn last week, closing Friday, December 20, 2024, at 1,365.07 points—a 4.65% decrease from the previous week’s close. This marks the lowest point in over three and a half months, leaving investors wondering what the coming week holds.
According to Kasikorn Securities Co., Ltd., the SET index is expected to find support at 1,350 and 1,340 points next week (December 23-27), while resistance levels are anticipated at 1,375 and 1,385 points. kasikorn Research Center highlights several key factors to watch, including November’s export figures for Thailand, year-end window dressing activities, and the overall direction of foreign capital.
The decline wasn’t isolated to Thailand. “the Thai stock market dropped more than 60 points within a single week,” notes a Kasikorn analyst. The drop was largely attributed to selling pressure from both domestic institutional and foreign investors. Early in the week, this pressure was exacerbated by adjustments ahead of MPC and Fed meetings, and further compounded by selling in the retail sector following a large retail company’s investment in a non-core subsidiary.
while a brief rally mid-week was fueled by strong bank stock buying following the MPC’s decision to maintain its policy interest rate, the market ultimately mirrored the downward trend of global markets after the Fed meeting. Despite the expected interest rate cut, the Fed’s signal of a delayed rate reduction in the coming year sent ripples through the market.
The average daily trading value last week reached 50,657.93 million baht, a 31.66% increase compared to the previous week. The mai index also suffered, falling 4.60% to close at 302.77 points.
US and Global Economic Indicators to Watch
US economic data to monitor includes November’s durable goods orders, new home sales figures, and weekly jobless claims. Internationally, investors will be keeping a close eye on the UK’s third-quarter 2024 GDP, retail sales data, Japan’s November industrial output, and China’s November industrial sector profits.
The situation highlights the interconnectedness of global markets and the impact of both domestic and international economic factors on investment strategies. US investors, in particular, should pay close attention to these global trends as thay can significantly influence investment decisions in both domestic and international markets.
