SET rebounds on Fed move to buy corporate bonds, rising crude oil price

A stock analyst at Krungsri Securities expected the index to rebound to between 1,365 and 1,370 points in response to the US Federal Reserve move to buy corporate bonds worth US$750 billion (Bt23.24 trillion) to increase liquidity and support employment.
“In addition, the index gained positive sentiment from the rising crude oil price while a mass buy-offs in stocks added to the SET50 and SET100,” he said.
The analyst, however, advised investors to beware of short-term mass sell-offs in shares due to uncertainty following the second wave of Covid-19 after an increase in the number of new virus cases in many countries including the US, China and Japan.
“Also, we advise investors to follow the Cabinet meeting on tourism stimulus measures,” he added.
He recommended investors buy:
▪ Stocks added to the SET50–BPP and TTW, and SET100–AAV, Ace, DoHome, RBF, SIRI, TVO and WHAUP.
▪ Stocks whose second-quarter performance will improve, such as CKP, Tasco, STA and RS.
▪ Stocks that would benefit from the Cabinet’s move to issue tourism stimulus measures, such as Mint, Centel, ERW and AOT.
The SET Index dropped sharply by 41 points yesterday, or 2.93 per cent, closing at 1,342. Total transactions were worth Bt83 billion.
Foreign investors made a net sell of Bt4.014 billion in stocks, but purchased Bt2.194 billion in bonds. There were 4,311 net short TFEX SET50 contracts.