Saturday, August 15, 2020

Surge in Covid-19 cases globally casts shadow over Thai stocks

Jul 10. 2020
Facebook Twitter

By The Nation

The Stock Exchange of Thailand (SET) Index dropped by 7.12 points, or 0.52 per cent, to 1,358.69 in morning session on Friday (July 10).

A stock analyst at Krungsri Securities expected the index to fall between 1,355 and 1,360 before rebounding due to uncertainty following the Covid-19 impact on economic recovery as the number of new cases continued to increase.

"In the US alone, the number of new Covid-19 cases has increased by 61,000 people per day, causing some states to impose lockdown measures again," the analyst said.

"Meanwhile the SET Index would be under pressure from the decline in crude oil price and the resignation of four Phalang Pracharat Party leaders."

The analyst added that the index would rebound from speculation in stocks whose second-quarter performance would benefit from the weakening baht.

He recommended that investors buy:

▪︎ Food and electronics stocks that benefit from the weakening baht, such as TU, CPF, GFPT, TFG, KCE, DELTA and HANA.

▪︎ Stocks whose second-quarter performance will improve, such as TOP, PTTGC, SPRC, BGRIM, CKP, TASCO, STA and SPALI.

▪︎ Defensive stocks that are able to escape the impact from market volatility, such as INTUCH, TTW and DIF.

The Stock Exchange of Thailand (SET) Index rose by 3.35 points, or 0.25 per cent, closing at 1,366 on Thursday. Total transactions amounted to Bt72.6 billion as investors still hold off investments due to lack of new positive factors and rising coronavirus cases.

Net buys by foreign investors amounted to Bt1.241 billion in stocks and Bt2.848 billion in bonds. There were 6,009 net long Thailand Futures Exchange contracts.

Tags:
Facebook Twitter
More in Business
Editor’s Picks
wmg-logo
Top News
wmg-logo