SET falls due to sharp plunge in oil price, exodus of foreign investors
The Stock Exchange of Thailand (SET) Index fell by 5.73 points, or 0.46 per cent, to 1,241.86 in the morning session on Friday.
An analyst at Krungsri Securities expected the index to fluctuate between 1,240 and 1,255 despite positive sentiment from the ongoing process of the US$2.2-trillion US economic stimulus bill.
"The sharp fall in oil price due to uncertainty over fuel demand and foreign investors' mass sell-offs of Thai shares would pressure the index," he said.
As an investment strategy, he recommended that investors buy:
▪︎ Banpu and AGE that will benefit from rising coal price in response to China's strong demand.
▪︎ PSL, TTA and RCL that benefit from the sharp rise in Baltic Dry Index
▪︎ Delta, Hana, KCE and SMT that benefit from the weakening baht.
The SET Index closed at 1,247 on Thursday, up 10.55 points or 0.85 per cent, while the volume of total transactions was Bt44 billion from hopes of US lawmakers reaching an agreement on new economic stimulus measures and mass buy-ups of SCC and BANPU shares.
