Thursday, July 09, 2020

SET rises on hopes of economic recovery

May 28. 2020
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By The Nation

The Stock Exchange of Thailand Index opened at 1,355.60, up 10.49 points, or 0.78 per cent, on Thursday morning (May 28).

A stock analyst at Krungsri Securities expected the index to rise to between 1,355 and 1,360 on hopes of economic recovery after many countries eased lockdown and issued economic stimulus measures.

“Recently the European Union raised 750 billion euros to help the economy recover,” the analyst said.

“In addition, the market gained positive sentiment from the Thai Centre for Covid-19 Situation Administration's aim to announce the third phase of lockdown easing within this week.”

However, the index would be under pressure from mass sell-offs in energy stocks and the tight SET valuation.

“The price of crude oil dropped from uncertainty following the decline in oil demand due to the conflict between the US and China,” the analyst said.

He recommended investors to buy TMB, KKP, TISCO, AH, SAT, including: 

● Stocks which will benefit from the government’s tourism stimulus measure, such as MINT, CENTEL, ERW, AOT, MAJOR and SPA.

● Stocks which have been added to the MSCI calculation – AWC, BAM and KTC.

● Stocks whose second quarter performance will improve, such as CKP, TASCO, STA, RS and EPG.

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