SET up on hopeful Covid situation but index won’t be in for a smooth ride
The Stock Exchange of Thailand (SET) Index rose by 11.06 points or 0.70 per cent to 1,593.13 on Tuesday morning.
Krungsri Securities expected the index would move to between 1,590 and 1,600 points on Tuesday on hopes that the lockdown would be eased as domestic Covid-19 cases were seen to be declining.
It added that the index also gained positive sentiment from expectation that the US Federal Reserve would delay tapering of its quantitative easing programme due to a decline in the Purchasing Managers’ Index, as well as the rising oil price.
“However, the index would be under pressure due to mass sell-offs of shares to prevent risks before the Fed’s annual meeting,” Krungsri Securities said.
It recommended selective buying of the following companies’ shares as an investment strategy:
▪︎ AOT, CPN, CRC, HMPro, AAV, BA, Mint, Centel, Amata and WHA, which would benefit from the country reopening.
▪︎ PSL, TTA and RCL, which would gain from a rise in the freight rate.
▪︎ Hana, KCE, TU, CPF, GFPT, Asian, EPG and NER, which benefit from a weakening baht.
The SET Index closed at 1,582.07 on Monday, up 28.89 points or 1.86 per cent. Transactions totalled THB114.58 billion with an index high of 1,583.13 and a low of 1,565.93.
