SET gains on the back of agreement in US on stimulus package
The Stock Exchange of Thailand (SET) Index rose by 14.99 points, or 1.39 per cent, to 1,095.02 in the morning session on Thursday (March 26).
A stock analyst at Krungsri Securities expected the index would move between 1,065 and 1,100.
“The market gained external support after the US White House and Senate reached an agreement on a US$2-trillion package to relieve the burden for Americans and business sectors affected by the Covid-19 impact, including handing out cash to citizens, hospitals, and small enterprises,” the stock analyst said.
“Meanwhile, the US Federal Reserve’s measure to use the unlimited quantitative easing bond purchase programme to increase liquidity and boost the economy will be a positive sentiment for overall investment.”
The analyst said the Monetary Policy Committee (MPC) had forecast that Thailand’s gross domestic product this year would contract by 5.3 per cent due to the Covid-19 outbreak. Besides, the slowing domestic economic activity following the emergency decree to contain the spread would pressure the index to slump.
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 stocking up 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.
