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Baht Firms On Better Sentiment Despite Continued Equity Outflows


Spot USD/THB has eased off after a strong Wall Street session on Monday. The rate last deals -0.085 at THB38.150, with bears looking for losses past Oct 6 low of THB37.125, which would mark the completion of a mini-double top formation. Bulls set their sights on Sep 28 cycle high of THB38.450.

  • Offshore investors were net sellers of $62.08mn in Thai equities Monday. Foreign capital has been escaping the Thai stock market since the beginning of September, with net YtD inflows now down to $4.297bn from the $5.173bn peak. The SET index was heavy on Monday, approaching its Oct 3 cyclical low, but has found poise this morning on a positive lead from Wall Street and last trades ~0.7% higher on the day.
  • Fiscal Policy Office chief said that the Finance Ministry is preparing new measures to encourage spending, without giving any details at this stage, with the government looking to maintain economic recovery amid deteriorating external conditions.
  • The Thai Cabinet holds its weekly meeting today.

Fig. 1: Thailand Stock Exchange Foreign Stocks Net Investment YtD vs. Daily Net Flows

Source: MNI - Market News/Bloomberg

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