Crude oil price plunge forces SET down

A stock analyst at Krungsri Securities expected the index to fluctuate between 1,250 and 1,280 points.
“The market continues to gain from hopes the lockdown will ease, with the Covid-19 situation in Thailand improving,” the stock analyst said.
“Meanwhile, the US and European countries are prepared to reopen some states, resulting in a positive sentiment for economic activities and investment.”
The analyst said the oil businesses would be under pressure after the crude price dropped sharply due to uncertainty following low demand, while US oil storage was almost full and would lead to oversupply.
“In addition, investors should beware of a mass sell-off following uncertainty that listed companies’ finances in the first quarter of this year would drop sharply, causing the market to come under pressure.”
The analyst recommended that investors make selective buys from four groups of stocks:
● Stocks that would benefit from a decline in the oil price, such as Tasco, EPG, and IVL.
● Financial stocks that would benefit from the Accounting Profession Supervision Committee easing Thai Financial Reporting Standards 9 and low-interest soft loans from the government in exchange for a moratorium, such as KTC, Sawad, MTC, JMT and BAM.
● Retail, tourism and hotel stocks that benefit from a decline in the number of Covid-19 patients in the country and hopes that the lockdown will ease, such as CRC, CPN, HMPro, Global, Com7, AOT, Centel, Mint and ERW.
● ICT and food stocks that have escaped the severe impact of the outbreak, such as Advanc, Intuch, Dtac and CPF.