By The Nation
A stock analyst at Krungsri Securities expected the index to slide to between 1,020 and 1,030 before rebounding.
“Investors are still under pressure due to uncertainty following the rapid spread of Covid-19 that would cause a global economic recession and the decline in crude oil price to the lowest point in 18 years, which would cause a negative sentiment for energy and petroleum stocks,” the stock analyst said.
The analyst expected the index to rebound due to positive sentiment from the European Central Bank (ECB), which announced it would buy assets with a limit of 750 billion euros to deal with the economic impact from Covid-19.
“In addition, the US Senate has approved the Families First Coronavirus Response Act with a limit of US$1 trillion to mitigate the impact of Covid-19,” the stock analyst said.
“Moreover, Thailand's Ministry of Finance is prepared to propose additional measures to take care of people and businesses affected by the Covid-19 impact to the Cabinet next week.”
The analyst recommended three groups of stocks for investors:
● Defensive stocks which pay high dividends, such as ADVANC, INTUCH, and TTW.
● Retail stocks, which gained buying power after the government returned Bt30 billion electricity metre insurance, such as CPALL, HMPRO, and BJC.
● Financial stocks, which gained from interest rate cuts, such as MTC, SAWAD, and KTC.