SET rebounds amid hopes of global stimulus measures
The Stock Exchange of Thailand (SET) Index rebounded by 11.79 points, or 1.15 per cent, to 1,036.25 in Tuesday's (March 24) morning session.
A stock analyst at Krungsri Securities expected the index would rebound between 1,065 and 1,080 as central banks and governments worldwide issued economic stimulus measures.
“Although the market is still concerned that the outbreak of Covid-19 would pressure the global economy into recession, central banks and governments have moved to issue measures to deal with the situation and that would be a positive sentiment for investment,” the stock analyst said.
The analyst explained that the US Federal Reserve announced it would use an unlimited quantitative easing bond purchase programme and increase credit line by US$300 billion, allowing businesses to borrow at lower interest cost as part of a massive stimulus package.
“Investors hope that the US Senate will reach an agreement on measures to relieve the burden of the American people and businesses worth about US$2 trillion,” the stock analyst said.
“Meanwhile, the Thai Cabinet would issue measures to help those affected by the Covid-19 situation by granting money and low-interest loans at their meeting this afternoon.”
The analyst recommended three groups of stocks for investors:
● ICT stocks which benefit from work from home trends, such as ADVANC, INTUCH, and DTAC.
● Retail stocks, which benefit from people hoarding products during the Covid-19 situation, such as CPALL and BJC.
● Food stocks, which would benefit from the weakening baht, such as CPF and TU.
