Tuesday, September 22, 2020

SET rises slightly on hopes of US stimulus package, rising oil price

Aug 06. 2020
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By The Nation

The Stock Exchange of Thailand (SET) Index rose by 0.66 points, or 0.05 per cent, to 1,338.01 this morning (August 6).

A stock analyst at Krungsri Securities expected the index to rise between 1,345 and 1,350 points before falling in response to positive news about a $1-trillion (Bt30.9 trillion) US economic stimulus package, on which the US Congress and the White House could reach agreement next week.

“Also, the market gained positive sentiment from the rising crude oil price that increased over $42 per barrel after US crude oil storage dropped by 7.4 million barrels,” the analyst said.

However, he said stock volatility, weak second-quarter company performance and mass sell-offs in response to technical indicators would see a slump in the index.

He recommended investors buy:

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

> Stocks whose second-quarter performance will improve, such as Top, PTTGC, SPRC, BGrim, CPF, TU, Asian, Tasco, STA, STGT, AP, PRM, PTL, AJ, CBG, TQM, JMT, Chayo, PTG, and BCH.

The SET Index closed 6.54 points, or 0.49 per cent, higher at 1,337.35 yesterday. Total transactions stood at Bt60.35 billion, with an index high of 1,341.23 and a low of 1,326.07.

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