Tisco analyst urges investors to closely watch Cabinet meeting
Tisco Research has predicted that the Stock Exchange of Thailand (SET) Index has a chance to rebound with support at 1,490-1,480 and resistance at 1,500-1,515 due to uncertainty among investors following the coronavirus outbreak.
The SET Index yesterday (February 3) ranged between 1,495 and 1,513 and closed below 1,500 for the first time in three years due to uncertainty over the impacts on the global markets of the novel coronavirus outbreak and the sharp fall in the price of oil.
Foreign investors bought stocks totalling Bt256 million while there were 8,412 short-term S50 Futures contracts for three consecutive days.
Senior Tisco Securities strategist Apichat Poobunjirdkul said that global stocks rebounded on Monday after falling sharply last Friday due to the US’s Institute of Supply Management in manufacturing rebounding to 50.9 points in January above the market expectation of 48.5 points, and China’s efforts to reduce the impact of the coronavirus on the economy -- China’s central bank injected US$21 billion money into the system.
“The West Texas Intermediate crude oil price fall by US$1.45, or 2.8 per cent, closing at the lowest price in more than one year of $50.11 per barrel due to the impact of coronavirus outbreak,” he said.
“We recommend closely following the Thai Cabinet meeting. The Cabinet might approve measures to boost the economy and speed up investment, including the bidding for the 5G broadband network.”
The stock analyst urged investors to stop loss and monitor the situation after the SET Index closed lower than 1,505 points on Monday.
Outstanding picks for February are: AP, EASTW, ERW, KKP, RBF and TASCO.
Outstanding stocks for the year are: CPALL, BJC, AEONTS, PLANB, AOT, PTTEP, PTT, TOP, SPRC, SPALI and KKP.