Thursday, June 04, 2020

SET Index jumps nearly 5%

Apr 07. 2020
Facebook Twitter

By The Nation

The Stock Exchange of Thailand (SET) Index rose by 56.62 points, or 4.97 per cent, to 1,195.46 in the morning session today (April 7).

A stock analyst at Krungsri Securities expected the index to rise between 1,165 and 1,190 points as the market responded to the slowdown in the number of Covid-19 patients and deaths worldwide.

“The number of patients in the US rose by 8.2 per cent, dropping from the previous week of 12.3 per cent, while in Thailand it increased by 51 people. This showed the lockdown and curfew are helping to mitigate the situation,” he explained.

“Meanwhile, the market gained support from governments’ economic stimulus measures and interest rate cuts around the world.” 

He said in Thailand the government has issued the third phase of Covid-19 relief measures worth 10 per cent of gross domestic product, or about Bt1.7 trillion, resulting in investors having more confidence in market conditions.

“However, the index would be impacted after Opec and its partners postponed a key meeting to April 9,” the stock analyst said.

He recommended investors make selective buys from four groups of stocks:

● Energy and petroleum stocks, which would benefit from the expectation that Opec and its partners will cut their oil production capacity, such as PTT, PTTEP, Top, PTTGC and IVL.

● Food stocks, which would benefit from the weakening baht and likely see growth in the first quarter of this year, such as CPF and TU.

● ICT stocks, which would benefit from the present work-from-home trend, such as Advanc, Intuch and Dtac.

● Defensive stocks, which pay high dividends, such as TTW and BCPG.

Facebook Twitter
More in Business
Editor’s Picks
Top News