Coronavirus outbreak to have side effects on stock market, SET plunges
Krungsri Securities has predicted that the Stock Exchange of Thailand (SET) Index on Monday (January 27) will fall to the support point of 1,550-1,555 points due to uncertainty following the outbreak of the new coronavirus in many countries.
A stock analyst at Krungsri Securities said that recently, the number of patients infected by this virus had increased to 2,744 people, while 80 people had died.
“Meanwhile, China has announced that it would extend the Chinese New Year holidays and has prohibited Chinese tour operators from organising overseas trip or sell tourism packages,” the stock analyst said.
“China’s move to close their country has caused crude oil price to fall below US$53 per barrel, which directly affected energy stocks. Therefore, investors are expected to remain at risk, as reflected in the 10-year US bond yield and the rise in gold prices.”
The stock analyst suggested that investors pick three stock groups as follows:
● Importers and food stocks which will benefit from the strengthening baht such as KCE, HANA, DELTA, CPF, TFG and TU
● Hospital stocks, which will benefit from the outbreak of coronavirus and the PM2.5 dust crisis in Thailand, such as BDMS, BH, BCH, and CHG
● Defensive stocks whose earnings in the fourth quarter of 2019 were expected to be good, such as GPSC, GULF, JMT, CPF, SAWAD, MTC, BTS, BEM, INTUCH, ADVANC, OSP, and CBG.
The SET Index on Monday morning fell sharply by 45.77 points, or 2.92 per cent., to 1,523.78.