Sunday, June 07, 2020

Relief measures, expected SSF launches send SET up

Mar 31. 2020
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By The Nation

The Stock Exchange of Thailand (SET) Index closed at 1,125.86 today (March 31), an increase of 38.04 points, or 3.50 per cent, from Monday’s close.

Transactions amounted to a total Bt56.906 billion, with an index high of 1,127.92 and a low of 1,104.12.

A stock analyst at Krungsri Securities expected the index to rebound between 1,100 and 1,110 points before falling, as other regional stock markets had also risen, buoyed by governments worldwide issuing measures to deal with the Covid-19 situation – such as cutting interest rates, using quantitative easing, injecting money, and extending the social distancing period.

“Also, the market will gain positive sentiment after several asset management companies prepared to offer a Super Savings Fund (SSF) on April 1, which is expected to generate Bt60 billion and support the index,” the analyst said.

SSF, a long-term mutual fund with tax deduction benefits, will replace the long-term equity fund (LTF), which expired at the end of last year.

The SSF scheme is expected to attract people who have invested in LTF and it could potentially boost the SET Index, he said.

The analyst said that uncertainty over the rising number of Covid-19 cases worldwide and a declining crude oil price would pressure energy stocks and the index.

“Currently, the number of Covid-19 cases worldwide has touched 789,804, while crude oil supply is expected to rise after Saudi Arabia said it was prepared to increase its exports to 10.6 million barrels per day in May,” the analyst said.

The crude price rose by US$1.34, or 6.67 per cent, to $21.43 (Bt698.77) per barrel, while the price of gold dropped by $18.20, or 1.12 per cent, to $1,603.80 per ounce.

The top ten stocks with the highest trade values today were BAM, PTT, CPAll, Gulf, AOT, KBank, PTTEP, PTTGC, SCB, and Mint.

Meanwhile, some Asian markets were mixed:

Japan’s Nikkei Index closed at 18,917.01, down 167.96 points, or 0.88 per cent.

China’s Shanghai SE Composite Index ended the day at 2,750.30, up 3.08 points, or 0.11 per cent, while the Shenzhen SE Component Index closed at 9,962.30, up 57.35 points, or 0.58 per cent.

Hong Kong’s Hang Seng ended at 23,603.48, up 428.37 points, or 1.85 per cent.

South Korea’s Kospi closed at 1,754.64, up 37.52 points, or 2.19 per cent.

Taiwan’s TaiEx ended at 9,708.06, up 78.63 points, or 0.82 per cent.

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