New IHU Covid-19 variant expected to pressure SET
Krungsri Securities forecast the Stock Exchange of Thailand (SET) Index on Wednesday (January 5) would rise to between 1,675-1,680 points before falling.
It said the index still gained positive sentiment from the foreign fund inflow as concerns over Omicron Covid-19 variant has been relieved.
Hopes over Thailand economic recovery, plus rising oil prices in response to Opec+ move to raise oil production capacity, would also help boost the index, it added.
"However, the news of a new 'IHU' Covid-19 variant in France would pressure the index," Krungsri Securities said.
It also recommended buying of the following companies’ shares as an investment strategy:
- HMPRO, CPN, CRC, SYNEX, COM7 and JMART, which benefit from the government's “Shop Dee Mee Kuen” (shopping with refunds) scheme.
- RCL, LEO, III, WICE, SONIC and JWD, which benefit from rising freight rate.
- EA, GPSC, AMATA, WHA, AH and SAT, which benefit from the government's support on electric vehicles.
- PTTEP, TOP, PTTGC, IVL and SPRC, which benefit from rising oil price and gross refining margin.
- BBL, TTB, KTB and KBANK, which benefit from news of interest rate hike.
The SET Index closed at 1,670.28 on Tuesday, up 12.66 points or 0.76 per cent. Transactions totalled 100.01 billion baht with an index high of 1,674.19 and a low of 1,663.50.
