SET drops slightly after rise in previous days

A stock analyst at Krungsri Securities expected the index to fluctuate between 1,255 and 1,280.
The market gained support from hopes over an economic recovery after the number of Covid-19 cases has been steadily dropping.
“Many countries, such as the US, Italy and Thailand, plan to ease lockdown measures by allowing some businesses to resume operations,” the analyst said.
He said energy and petroleum stocks would be under pressure as the crude oil price dropped sharply due to uncertainty following oversupply and with US oil storage nearly at maximum.
“In addition, investors were selling stocks due to uncertainty after a decline in listed companies’ 1Q20 performance, which would cause stock market volatility,” the analyst said.
“Investors expect PTT Exploration and Production and Siam Cement 1Q20 performance would drop both quarter-on-quarter and year-on-year.”
He said the SET Index on Monday closed at 1,267, up 8.63 points, or 0.69 per cent, with transactions amounting to Bt49 billion.
“The market responded to the decline in the number of Covid-19 cases in Thailand and the Centre for Covid-19 Situation Administration's plan to ease lockdown measures by allowing department stores, barbers, small shops and flea markets to resume operations from May 4,” the analyst explained.
“Foreign investors made a net sell of Bt669 million in stocks and Bt2.672 billion in the bond market, while there were 3,895 net short TFEX SET50 contracts,” the analyst said.
He recommended investors make selective buys from these 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.