SET bounces back after falling 7 per cent on Monday
The Stock Exchange of Thailand (SET) Index on Tuesday (March 17) morning rose by 8.80 points, or 0.84 per cent, to 1,054.88.
A stock analyst at Krungsri Securities expected the SET Index would slide between 1,020 and 1,030 before rebounding, as investors are still under pressure following the economic recession due to the worldwide spread of Covid-19.
“Currently, around 170,000 people have been infected by this virus, while around 6,500 people have died,” the stock analyst said.
The analyst explained that although the US Federal Reserve had made an emergency interest rate cut by one percentage point to almost zero and used “quantitative easing” bond purchase programme with a limit of US$700 to tackle the Covid-19 outbreak, investors still sold their stocks to reduce risks in the stock market, resulting in negative sentiment for investment.
“However, we expect the index to rebound from various measures issued by countries worldwide to support the economy, which would be positive sentiment for the index,” the stock analyst said.
The analyst recommended three groups of stocks for investors:
● Defensive stocks that pay high dividends, such as ADVANC, INTUCH and TTW.
● Retail stocks, which gained buying power after the government returned the electricity metre insurance for a total of Bt30 billion, such as CPALL, HMPRO, and BJC.
● Financial stocks, which gained benefit from interest rate cut trends, such as MTC, SAWAD, and KTC.
