SET falls amid worries of US economic contraction

A stock analyst at Krungsri Securities expected the index to fall to between 1,400 and 1,410 in response to the decline in regional stocks.
“The US Federal Reserve decided to maintain the interest rate at 0-0.25 per cent until the economy recovered,” the analyst said.
“However, investors have begun to worry about the US economic slowdown after the Fed expected the US gross domestic product this year to contract by 6.5 per cent and the unemployment rate this year was expected to be at 9.3 per cent.”
The analyst added that the index would rebound from hopes that the Centre for Covid-19 Situation Administration was preparing a proposal to end the night curfew for 15 days, and begin the fourth phase of lockdown relaxation this week.
He recommended investors buy:
▪ Stocks that would be added to the SET50 and SET100 calculation, such as BPP, TTW, ACE, DOHOME, RBF, SIRI, SISB, TVO and WHAUP.
▪ Stocks whose second-quarter performance will improve, such as CKP, TASCO, STA and RS.
▪ Financial stocks that benefit from the low interest rate, such as KTC, SAWAD, MTC, JMT and BAM.
The SET Index on Wednesday rose by 10 points, or 0.74 per cent, closing at 1,419. Total transactions were worth Bt77 billion. Foreign investors made net buy of Bt859 million in stocks and Bt3.040 billion in the bond market. There were 13,767 Net Long TFEX SET50 contracts.