Krungsri Securities (KSS) expected Thailand’s SET Index to move within the range of 1,380-1,400 points even with a positive sentiment from rising regional markets from easing concerns about conflicts between Israel and Hamas. Meanwhile, there could be a speculative buy on certain stocks prior to the 3Q23 earnings reports with the market currently in an oversold territory. However, the decline in crude oil price could pressure the SET Index to fluctuate.
Yesterday, Chinese President Xi Jinping made his first-ever known visit to the People Bank of China since he became president a decade ago, according to several reports, including Bloomberg and Reuters. The market is expecting a massive stimulus package coming after this event, which has been seen as a sign for economic focus.
China’s government body approved a plan to raise the fiscal deficit ratio for 2023 to about 3.8% of gross domestic product from the earlier 3% set in March, according to the official Xinhua News Agency. This plan also includes a massive stimulus that the market had been talking about in the past few weeks, which is an issuance of additional sovereign debt worth 1 trillion yuan in the fourth quarter to support its economy against headwinds from the property sector and weak exports.
Oil prices fell on Tuesday for the third straight session, following a report of slow economic data from Germany, the euro zone, and Britain pointed toward a bearish outlook for demand. Eurozone business activity worsened this month, while German readings lean toward a possible recession. Britain’s businesses also reported declining activity as well.
Brent crude futures dropped $1.76 or 2% to close at $88.07 a barrel on Tuesday, while U.S. West Texas Intermediate (WTI) crude futures fell $1.75 or 2.1% to settle at $83.74 per barrel.
Crude prices continued to drop on Wednesday with Brent crude slipped 0.03% to $88.04 a barrel and WTI dipped 0.12% to $83.64 a barrel.
