Friday, July 03, 2020

SET falls amid rising tensions between US and China 

May 29. 2020
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By The Nation

The Stock Exchange of Thailand Index opened at 1,331.98, down 5.53 points, or 0.41 per cent, on Friday morning (May 29).

The index is expected to fall to between 1,325 and 1,330 before rebounding, due to uncertainty following the conflict between US and China after Chinese lawmakers approved new national-security legislation for Hong Kong, a Krungsri Securities stock analyst said

“A renewal of the trade war might emerge as the US prepared to announce a new policy towards China today [Friday],” the analyst said. “Meanwhile, the index would be under pressure from the tight SET valuation as well.”

However, the index would rebound from hopes of the third phase of lockdown easing this week, while investors could speculate on stocks which have been added to the MSCI calculation.

He recommended investors to buy: 

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

▪︎ Stocks which will benefit from the government’s tourism stimulus measures, such as MINT, CENTEL, ERW and AOT.

▪︎ Stocks which will benefit from the third phase of lockdown easing, such as MAJOR and SPA. 

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

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