SET drops slightly on worries over second Covid-19 wave abroad

A stock analyst at Krungsri Securities expected the index to fluctuate between 1,275 and 1,300 points.
The market gained positive sentiment from hopes that the first phase of a US-China trade agreement would go ahead and the Centre for Covid-19 Situation Administration would ease up further on the lockdown.
“In addition, Saudi Arabia will cut its oil production capacity by a further 1 million barrels per day by June this year,” the analyst pointed out.
He said uncertainty following a possible second Covid-19 wave in China, South Korea and Germany has risen sharply and this could see a plunge in the index.
“The index will also come under pressure as investors expect companies’ first quarter performances to slump both quarter-on-quarter and year-on-year,” he added.
He suggested investors make selective buys from these four groups of stocks:
● Retail stocks that would benefit from the second phase of the country easing its lockdown, such as CRC, CPN, HMPro, Global, Com7 and DoHome.
● Stocks that would be added to Morgan Stanley Capital International calculation, such as KTC, AWC and TOA.
● Stocks whose first quarter performance are expected to improve, such as CPF and IVL.
● Energy stocks that would benefit from rising oil prices after Saudi Arabia cuts production further, such as PTT, PTTEP, Top, PTTGC and SPRC.