SET Index slightly up

A stock analyst at Krungsri Securities expected the index to fluctuate between 1,250 and 1,270 points.
“The market gained positive sentiment after US President Donald Trump signed a $484-billion [Bt15.68 trillion] bill to help small enterprises and hospitals, while Georgia eased its lockdown measures by allowing small enterprises to reopen,” the stock analyst said.
“Meanwhile, investors expected the Thai Cabinet to ease its lockdown in a meeting on Tuesday after confirmed Covid-19 cases in the country continued to decrease, causing positive sentiment for economic activity and the stock market.”
The analyst said uncertainty following the decline in listed companies’ 1Q20 performance and news reports about the US suspension of tariff privileges under the Generalised System of Preferences on 573 Thai products worth Bt40 billion would pressure the index.
“Investors expect PTT Exploration and Production and Siam Cement 1Q20 performance would drop both quarter-on-quarter and year-on-year,” the analyst said.
He said the SET Index on Friday closed at 1,258, down 13.75 points, or 1.08 per cent, with transactions amounting to Bt69 billion.
“Foreign investors made a net sell of Bt3.15 billion in stocks,” the analyst said.
He recommended investors make selective buys from three groups of stocks:
● Retail and hotel stocks that would benefit from the expected easing of lockdown measures, such as CRC, CPN, HMPro, Global, Com7, Centel, Mint and ERW.
● ICT and food stocks that have escaped the severe impact of the outbreak, such as Advanc, Intuch, Dtac and CPF.
● Stocks whose 1Q20 performance is expected to increase, such as CPF, IVL, BCPG and RS.