Baht to stay strong, stock market sluggish next week

BANGKOK, March 10 (TNA) – The Thai baht is expected to remain strong against the dollar next week, while the Stock Exchange of Thailand (SET) is expected to remain sluggish, according to a report issued by the Kasikorn Research Centre.

The report said the baht hit a new nine-year high against the greenback on Thursday as it was traded at Bt35.13 against the dollar on hopes that the Bank of Thailand (BoT) would lift its 30 per cent reserve requirement on foreign capital inflows after Chalongphob Sussangkarn assumed the finance ministry portfolio.

On Friday, the baht edged down marginally and closed at Bt35.21 against the dollar compared to Bt35.31 a week ago.

The report said the baht is expected to move from Bt35-35.40 against the dollar on the onshore market next week as exporters will continue selling the greenback.

The SET composite index on Friday closed at 671.17 points, down about 1.16 per cent from a week ago while daily turnover decline to approximately Bt7.17 billion from Bt12.70 billion last week.

This week's SET index fell for the second consecutive week as foreign investors were again net sellers amounting Bt1.84 billion. Most investors were earlier this week awaiting the appointment of the new finance minister and preferred to stay on the sidelines as they waited for new policies to be issued by the minister.

The report said the lack of fresh positive factors in the stock market while most investors awaited more new policies to be given by the new finance minister coupled with a placing of an 'XD' sign on some blue-chip stocks would have an impact on the SET next week.

Global oil prices will also play a significant impact on the SET as traders will be watching for news from a meeting next week in Vienna, Austria of the Organization of Petroleum Exporting Countries (OPEC).

TNA