Futures Focus

The SET50 Index closed last week at 994.33 points, an increase of 8.96 points or 0.91% from the previous week. The most active SET50 Futures contract S50M15 (expiring in June 2015) was settled at 978.60 points, an increase of 10.50 points or 1.07%.

Approval by the IMF for Greece to delay its debt repayments to the end of June rattled European financial markets last week, with knock-on effects in Asia and elsewhere. The Dow also lost ground as the rising dollar stoked concerns about the earnings of US companies that derive significant revenue from abroad. An upbeat US jobs report added to the worries of equity investors on Friday, as signs of economic strength increase the chances of a Federal Reserve interest rate increase. The Dow shed 56 points on Friday to close at 17,849.46, a decrease of 0.9% from 18,010.68 the week before.

In Thailand, inflation remained negative for a fifth straight month, at -1.7% year-on-year in May. Economists are almost certain to reduce their full-year GDP forecasts. However, they expect the Bank of Thailand to maintain its interest rate at 1.50%, having made two cuts already this year. Even so, the SET rallied on Friday to close at 1,507.37, a gain of 0.7% from the previous week.

On the TFEX, daily average trading volume was 175,574 contracts, an increase of 21,392 contracts or 13.9% from the previous week. The most actively traded product was SET50 Index Futures with 437,555 contracts, or 109,389 per day. Total market open interest was 1,083,951 contracts, an increase of 36,444 or 3.5%.