‘Pandemic’ label puts global markets in turmoil
With the Covid-19 situation deteriorating in Thailand, Italy, the United States and elsewhere, stock markets around the world were shedding value on Thursday morning (March 12).
The Stock Exchange of Thailand (SET) index lost 109.84 points compared to Wednesday’s closing figure, a 8.79-per-cent drop to 1,140.05 points.
An analyst at Krungsri Securities said he expected the SET to fall 1,220-1,235 points due to the uncertainty over the Covid-19 outbreak and heavy pressure to sell off oil stocks.
“Oil prices fell sharply last night because of the Covid-19 outbreak,” he said, referring to Wednesday’s downturn.
“Meanwhile, the World Health Organisation has now declared Covid-19 a pandemic and the number of confirmed infections in Thailand has risen again, putting more pressure on the market.
“Plus, large-cap stocks are still under pressure due to foreign investors continuously selling their stocks.”
The analyst recommended buying power plant stocks, focusing those with high earnings per share and high dividend yield. The price of those stocks, such as BCPG and GPSC, has declined since the government capped electricity bills.
The analyst also recommends:
● Retail stocks, such as CPALL, HMPRO and BJC, which gained buying power after the government returned Bt30 billion in electrical-meter insurance revenue
● Financial stocks, such as MTC, SAWAD and KTC, which have benefited from interest rate cuts
● Defensive stocks, such as ADVANC, INTUCH and TTW, which pay high dividends.
