SET Index still under pressure from falling crude oil price
The Stock Exchange of Thailand (SET) Index dropped by 6.49 points, or 0.52 per cent, to 1,246.43 on Wednesday morning (April 22).
A stock analyst at Krungsri Securities expected the index to drop to between 1,225 and 1,235 before rebounding.
“The market is still under pressure from the falling crude oil price due to uncertainty following the decline in demand, as that would lead to oversupply,” the stock analyst said.
“In addition, investors were concerned about listed companies’ financial results, expecting a slide in performance due to the Covid-19 situation, causing negative sentiment for investment.”
The analyst said that the index would rebound from hopes over the easing of the lockdown measure after Prime Minister Prayut Chan-o-cha will review the state of emergency next Tuesday (April 28).
The analyst recommended that investors make selective buys from three groups of stocks:
● Stocks that will benefit from a decline in the oil price, such as TASCO, EPG and IVL.
● ICT, food, and public utility stocks that have escaped the severe impact of the outbreak, such as ADVANC, INTUCH, DTAC, CPF, TTW and BCPG.
● 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.
