SET rebounds on news of effective Covid-19 drug
The Stock Exchange of Thailand (SET) Index rose by 10.70 points, or 0.79 per cent, to 1,361.20 in morning trade today (July 13).
A stock analyst at Krungsri Securities expected the index to rebound between 1,360 and 1,365 points before falling in response to positive news of an anti-Covid-19 drug even as the number of virus cases continued to increase especially in the United States.
“The market gained positive sentiment from Gilead’s Remdesivir drug, which is said to reduce the death rate of Covid-19 patients by 62 per cent compared to standard treatment,” the analyst pointed out.
However, he said the index would come under pressure from the conflict between the US and China and mass sell-offs in stocks, whose second-quarter performance would drop sharply.
The analyst added that the Opec+ grouping will hold a meeting on Wednesday (July 15) to discuss an agreement to cut crude oil production, which will reach maturity at the end of this month.
He recommended investors buy:
> Food and Electronic stocks that benefit from the weakening baht, such as TU, CPF, GFPT, TFG, KCE, Delta, Hana and SVI.
> Stocks whose second-quarter performance will improve, such as Top, PTTGC, SPRC, BGrim, CKP, Tasco, STA, STGT, SPALI, PRM, PTL and AJ.
> Stocks that benefit from the Covid-19 drug development, such as Mint, Centel, ERW, AOT and AAV.
The Stock Exchange of Thailand (SET) Index dropped 15.31 points, or 1.12 per cent, on Friday, closing at 1,350.50. Transactions totalled Bt64.19 billion with an index high of 1,363.28 and a low of 1,346.72.
