SET rises, but falling oil price and banks' Q3 performance could pressure index
The Stock Exchange of Thailand (SET) Index rose by 9.65 points, or 0.78 per cent, to 1,247.19 in the morning session on Monday.
An analyst at Krungsri Securities expected the index to rebound to between 1,245 and 1,250 before falling in response to the news that US President Donald Trump would be able to leave the hospital on Monday after testing positive for Covid-19 last week.
However, he said the falling oil price, uncertainty over banks' weak third-quarter performance due to high non-performing loans, and foreign investors' mass sell-offs of stocks will pressure the index.
As an investment strategy, he recommended that investors buy:
▪︎ Banpu and AGE that 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 1,237.54 on Friday, down 10.05 points or 0.81 per cent. Total transactions amounted to Bt54.24 billion with an index high of 1,246.78 and a low of 1,231.11.
