SET Index rises as Covid-19 situation is seen to ease

A stock analyst at Krungsri Securities expected the index to rise between 1,240 and 1,250 points before falling as the market gained support amid news that the Covid-19 crisis is easing in Thailand.
“On Monday, the number of new Covid-19 patients rose to 2,579, with 28 new cases in a 24-hour period,” the stock analyst said. “If the number remains at a low level, we expect the government to ease its lockdown measures, which will be a positive sentiment for investment and economic conditions.”
The analyst said that the index however would be under pressure due to uncertainty following the decline in the US stock market as the United States has the most Covid-19 cases in the world, resulting in the impact on the American economy, as well as on listed companies’ income and profits.
“In addition, the crude oil price dropped due to uncertainty following a decline in demand, with lockdown measures being a negative sentiment on energy stocks,” he said.
“We recommend following Cabinet meetings as they would issue additional economic stimulus measures, especially measures to deal with the drought,” he added.
The analyst also recommended that investors make selective buys from three groups of stocks:
● Retail, tourism, and hotel stocks that benefit from a decline in the number of Covid-19 patients in Thailand, such as CRC, HMPro, Global, Com7, AOT, Centel, Mint and ERW.
● ICT and food stocks that have escaped the severe impact from the outbreak, such as Advanc, Intuch, Dtac and CPF.
● Defensive stocks with consistent income, such as GPSC, BGrim, Gulf and BCPG.