Futures Focus

The SET50 Index closed last week at 872.72 points, a decrease of 23.12 points or 2.6% from the previous week. The most active SET50 Futures contract S50Z15 (expiring in December 2015) was settled at 867.1 points, a decrease of 25.8 points or 2.9% from the previous week.

The US market moved in a narrow range while trading volume slowed ahead of the Thanksgiving holiday on Thursday. Investors this week will keep a close eye on US economic data, especially unemployment, as it might influence the decision at the Dec 15-16 Fed meeting, when many expect an interest-rate increase. The Dow dipped on Friday in a shortened session on concern about weak consumer spending and “Black Friday” shopping, closing at 17,798.49, down 0.2% from the week before.

Thai stocks sagged further as data showed exports in October contracted 8.1% year-on-year, the biggest drop of the year. However, the Finance Ministry remains confident that heavy state spending on infrastructure will drive 2016 GDP growth to 3.8%. Also weighing on the SET was a decline in ICT stocks amid concern that costly 4G licences would raise operating costs. The SET finished the week at 1,363.13, down 2.1% from a week earlier.

On the TFEX, daily average trading volume was 129,487 contracts, a decrease of 24,396 contracts or 15.85% from the previous week. The most actively traded product was SET50 Index Futures with 398,594 contracts, or 79,719 per day. Total market open interest was 1,079,672 contracts, an increase of 13,489 or 1.3%.