SET Index edges up as oil prices gain

A stock analyst at Krungsri Securities expected the index to rise to between 1,270 and 1,275 before falling.
“The market gained positive sentiment from regional indices responding to the rise in crude oil price after President Donald Trump instructed the US Navy to shoot down and destroy any Iranian gunboats that harass US ships, raising tensions between the two countries,” the stock analyst said.
The analyst said that investors also expected the US and European governments to announce new economic stimulus measures on Thursday.
“European Union will hold a meeting to discuss using its budget for the long term, while the US House of Representatives would approve Covid-19 relief measures to help small enterprises and hospitals worth US$480 billion,” the stock analyst said.
“However, the index would fall from mass sell-offs due to uncertainty that listed companies’ financial results might show a slide and a technical signal at the original peak of 1,275 points.”
The analyst recommended that investors make selective buys from four groups of stocks:
● Stocks that will benefit from a decline in the oil price, such as TASCO, EPG and IVL.
● ICT and food stocks that have escaped the severe impact of the outbreak, such as ADVANC, INTUCH, DTAC and CPF.
● Public utility stocks that have consistent revenue and profits, such as GPSC, GULF, BGRIM, BCPG and TTW.
● 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.