Thursday, October 01, 2020

US data lifts market but tensions with China needs close watching

Aug 10. 2020
Facebook Twitter

By The Nation

The Stock Exchange of Thailand (SET) Index rose by 3.76 points, or 0.28 per cent, to 1,328.16 on Monday morning (August 10).

A stock analyst at Krungsri Securities expected the index to fluctuate between 1,315 and 1,335, despite the market gaining positive sentiment from strong US economic data.

"In July this year, the US non-farm payroll rose by 1.763 million positions, while the US unemployment rate dropped to 10.2 per cent," he said.

"Also, investors expect lawmakers to reach an agreement soon on a $1-trillion economic stimulus package."

However, the analyst said a US-China conflict, falling oil price and mass sell-offs in stocks would pressure the index.

"Recently, the US-China conflict escalated after the US banned China's TikTok and WeChat applications, while oil price dropped due to uncertainty over decline in fuel demand after the number of Covid-19 patients continued to increase," he said.

The analyst advised investors to follow TASCO, ASIAN, JMT, BANPU, IRPC, TOP and PTT's second-quarter performance announcements on Monday.

The SET Index on Friday (August 7) closed at 1,324.40, down 8.82 points or 0.66 per cent. Total transactions stood at Bt44.367 billion with an index high of 1,333.21 and a low of 1,321.16.

He recommended that investors buy:

▪︎ Stocks whose second-quarter performance will improve, such as TOP, SPRC, BGRIM, CPF, TU, ASIAN, TASCO, STA, STGT, AP, PRM, PTL, AJ, TQM, JMT, CHAYO, PTG and BCH.

▪︎ Electronic stocks that benefit from work from home, 5G trends and the weakening baht, such as KCE, DELTA, HANA and SVI.

Facebook Twitter
More in Business
Editor’s Picks
Top News