Saturday, September 19, 2020

Limited upside room for SET due to lack of positive factors

Aug 07. 2020
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By The Nation

The Stock Exchange of Thailand (SET) Index fell by 0.98 points, or 0.07 per cent, to 1,332.24 on Friday morning (August 7).

A stock analyst at Krungsri Securities expected the index to fluctuate between 1,325 and 1,340 due to lack of new positive sentiment to boost the investment.

"The market gained positive sentiment from ongoing progress in the $1-trillion US economic stimulus package on which an agreement is expected to be reached soon, and from the rising price of crude oil to over $41 per barrel," he said.

"However, mass sell-offs in stocks after listed companies announced their second-quarter performance will pressure the index."

He recommended that investors buy:

▪︎ Energy stocks that benefit from rising crude oil price, such as PTT, PTTEP, TOP, PTTGC, 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 fell by 4.13 points, or 0.31 per cent, closing at 1,333 at close on Thursday.

Total transactions amounted to Bt55 billion due to mass sell-offs in small and medium stocks before listed companies announce their second-quarter performance by next week.

The market also was pressured by the fall in the European stock market due to weak economic data in several countries.

Foreign investors made net buys in stocks worth Bt608 million and net sales in bonds worth Bt2.626 billion. There were 11,587 net TFEX SET50 contracts.

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