Saturday, August 08, 2020

SET rises on hopes of V-shaped economic recovery

Jul 07. 2020
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By The Nation

The Stock Exchange of Thailand (SET) Index rose by 15.50 points, or 1.13 per cent, to 1,387.77 in the morning session today (July 7).

A stock analyst at Krungsri Securities expected the index to rise between 1,385 and 1,400 points on hopes of a V-shaped economic recovery after many countries eased their lockdown measures.

“The market gained positive sentiment after news that the US services index in June rose to 57.1, while euro zone retail sales in May increased by 17.8 month-on-month and the China services purchasing managers’ index in June rose to 58.4,” the analyst said.

“However, we advise investors to beware of market volatility as the number of US coronavirus cases continue to increase, causing some states to postpone moves to ease lockdown measures,” he added.

He recommended that investors buy:

- Energy stocks that benefit from the rising crude oil price, such as PTT, PTTEP, Top, PTTGC, IRPC, SPRC and IVL.

- Marine shipping stocks that benefit from a rising freight rate, such as PSL, TTA, RCL, AMA and PRM.

- Stocks that benefit from the Cabinet’s domestic tourism stimulus measures, such as Mint, Centel, ERW, AOT and AAV.

- Stocks whose second-quarter performance are expected to improve, such as Top, PTTGC, SPRC, BGrim, CKP, Tasco, STA and SPALI.

The SET Index dropped by 1.86 points, or 0.14 per cent, on Friday, closing at 1,372. Total transactions amounted to Bt71 billion.

Net buys by foreign investors amounted to Bt384 million in stocks and Bt10 million in bonds. There were 7,124 net TFEX SET50 contracts.

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