Futures Focus

The SET50 Index closed last week at 1,064.49 points, a decrease of 15.29 points or 1.43% from the previous week. The most active SET50 Futures contract S50M13 (expiring in June 2013) was settled at 1,065.3 points, a decline of 20.0 points or 1.84%.

Markets were rattled last week when US Federal Reserve Chairman Ben Bernanke hinted at a reduction of the Fed’s bond buying programme. Concern about the tapering off quantitative easing, together with weak Chinese manufacturing data, sent markets plunging on Thursday, led by a 7.3% fall in the Nikkei, followed by declines in European markets and on Wall Street. The Dow edged up on Friday to close at 15,303.10, down 0.3% from 15,354.4 the previous week.

In the Thai market, the SET index failed to retest the 1,650 level on Wednesday because of concerns about the Fed. Not only was there selling ahead of the Fed news, but the announcement by MSCI that INTUCH failed to meet its free-float requirement also caused the SET to plunge in the afternoon session. The index continued its negative trend on Thursday after the Bernanke testimony and the sharp fall of the Nikkei. The SET ended the week at 1,607.46 points, down 1.2% from the end of the previous week.

On the TFEX, daily average trading volume was 94,397 contracts, an increase of 30,464 contracts or 11.08% from the previous week. The most active traded product was stock futures with a daily average of 56,587. Total market open interest was at 532,139 contracts, an increase of 12.71% from the previous week.