Bangkok--16 Aug--UOB Bullion and Futures
The SET50 Index closed last week at 585.73 points, a decrease of 10.54 points or 1.77%from the previous week. For SET50 Index Futures, the nearest contract month S50U10 (expiring in September 2010), was settled at 582.3 points, a decrease of 9.6 points (1.62%) from the previous week.
Overseas stock markets tumbled last week as investors worldwide grew more concerned about the health of the US economy. The Federal Reserve’s plan to purchase more government bonds to fuel the economic recovery with money it received from maturing mortgage-backed bonds it bought during the recession, was considered insufficient to overcome concern about the economy. Weak outlooks from some major retailers later in the week put further pressure on stocks. The Dow Jones Industrial Average as a result shed 3.3% from the previous week to close last Friday at 10,303.15, while tech weakness pushed the Nasdaq down 5% to 2,173.48.
The Thai stock market moved sideways throughout a three-day trading week. Due to concern about the prospects for a global economic upturn, the SET index closed down last week for the first time after three consecutive weeks of rallies. As well, foreign investors stayed on the sell side for the first time after continuously buying for three consecutive weeks.
For all products on TFEX, the average daily trading volume last week was 13,919 contracts, an increase of 1,116 contracts. Open interest was 64,860 contracts, an increase of 1,875 contracts from the previous week.
Gold Market Snapshot
Gold futures August contract in Thailand settled down THB 90 at THB 18,530 on the TFEX market with volume of 1,478 contracts.
Gold climbed on Friday, making gains for two straight weeks for the first time since June, as weak U.S. jobs data and signs of an economic slowdown bolstered the metal's safe-haven appeal.
Spot gold was at $1,213.90 an ounce at 1:55 p.m. EDT (1755 GMT), against $1,211.20 late in New York on Thursday.
U.S. gold futures for December delivery settled 10 cents lower at $1,216.60.
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