SET index buoyant as central banks open salvage pipelines 

The index yesterday ranged in the positive upside between 1,499 and 1,520 thanks to the US Institute of Supply Management’s rebound in manufacturing and Cabinet approval for tourism stimulus measures.
Foreign investors bought Bt450 million worth of stocks and there were 12,696 long-term S50 Futures contracts.
Senior Tisco Securities strategist Apichat Poobunjirdkul said global stocks had rebounded for two consecutive days.
“The Dow Jones index rose by over 400 points, while Nasdaq rose to a new record high by 2.1 per cent, led by Tesla stock,” he said.
“Meanwhile, there was news that China’s central bank is injecting 1.7 trillion yuan, or US$243 billion. The market began to speculate that the bank will reduce loan interest and required reserve ratio in the next few weeks to support the economy during the coronavirus outbreak.”
He said the West Texas Intermediate crude oil price fell during the market closure by 1 per cent, dropping below $50 per barrel for the first time in more than a year.
“At first, the crude oil price rose due to the news that Opec might postpone a crucial meeting, but then came reduced sales and continuous risks due to concerns over oil demand during the coronavirus outbreak,” Apichat said.
He expects the Monetary Policy Committee to reduce the interest rate by 0.25 per cent, while Cabinet approval of five tourism and economic measures will help boost hotel, airline and retail stocks.
He advised that short-term trading is only suitable for those who can afford high risks, while other investors should watch and wait.
“The SET index will recover if it remains above 1,515 points throughout the week,” Apichat added. “We recommend buying stocks when it falls to 1,480 points.”
Outstanding picks for February are AP, EASTW, ERW, KKP, RBF and TASCO. 
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