Tuesday, September 29, 2020

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

Aug 11. 2020
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By The Nation

The Stock Exchange of Thailand (SET) Index rose by 11.74 points, or 0.89 per cent, to 1,333.75 on Tuesday morning (August 11).

A stock analyst at Krungsri Securities expected the index to rise between 1,330 and 1,335, before falling, in response to hopes of a $1-trillion US economic stimulus package as investors expected US lawmakers to reach an agreement by this week.

"Also, the market gained positive sentiment from the rising oil price as the price climbed to over US$42 per barrel again," he said.

However, the analyst said the index would be under pressure from the escalating US-China conflict after China imposed sanctions on US lawmakers in response to the US imposition of sanctions on 11 Hong Kong and Chinese officials.

"Meanwhile, we expect investors to delay trading to follow US-China trade negotiations on August 15 to assess the progress of the first phase of the trade agreement, while the SET will be closed on Wednesday for Mother's Day," he said.

The SET Index dropped 2.39 points, or 0.18 per cent, closing at 1,322.01 on Monday. The total transactions amounted to Bt37.417 billion with an index high of 1,330.17 and a low of 1,321.90.

He recommended that investors buy:

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

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

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