SET dragged down by virus news from US
The Stock Exchange of Thailand (SET) Index dropped by 1.83 points or 0.15 per cent to 1,226.20 in the morning session of trading on Monday (April 13).
A stock analyst at Krungsri Securities expected that SET index would move between 1,215 and 1,240 as the market gained support from rising crude oil price after Opec+ reached agreement on cutting output by 9.7 million barrels per day.
“In addition, governments worldwide accelerated economic stimulus measures to help people affected by the Covid-19 impact, such as cutting interest rates, granting soft loans, and remedial handouts,” the stock analyst said.
However, the Covid-19 pandemic is still pressuring investment direction, with the number of Covid-19 cases worldwide nearing 2 million and deaths at more than 114,000.
“The US has the most Covid-19 cases and deaths, meaning President Donald Trump will not resume the country’s economic activity until the situation is resolved,” the stock analyst said. “This is triggering negative sentiment on the global economy and investment direction.”
The analyst recommended investors make selective buys from three groups of stocks:
● ICT and food stocks that have escaped severe impacts from the outbreak, such as ADVANC, INTUCH, DTAC, and CPF.
● Defensive stocks with consistent income, such as GPSC, BGRIM, and GULF.
● Stocks that pay high dividends, such as TTW and BCPG.
