Wednesday, January 20, 2021

SET rises after passage of fiscal budget 2020 

Feb 14. 2020
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By The Nation

The SET index rose in morning trading to 1,540.28, up 4.76 points or 0.31 per cent today (February 14), following passage of fiscal budget 2020 Act. 

A stock analyst at Krungsri Securities had predicted that the SET index would move between 1,525 and 1,540 due to investors' concern over a rise in the number of persons infected with coronavirus (Covid-19).

The SET index yesterday (February 13) fell 7.07 points or 0.46 per cent to 1,533 with a trade value of Bt46 billion, after reports of a spike in coronavirus infection in China after the country changed its counting method.

“Foreign investors sold Bt1.32 billion worth of stocks, especially in petroleum, energy, and health segments,” the stock analyst said. “There were 1,251 Net Short Thailand Futures Exchange contracts while foreign investors made a net buy of Bt948 million in the bond market”.

The analyst expects energy stocks would gain from Opec's move to reduce production capacity by 600,000 barrels a day which will result in rising oil prices.

“Moreover, we expect the SET index to rebound after the House of the Representatives approved the National Budget for Fiscal 2020 Act after almost five months of delay, with disbursement expected to begin in the middle of March,” he said.

Four groups of stocks are recommended:

● Contractor and industrial estate stocks which will benefit from the approval of National Budget for Fiscal 2020 Act, such as STEC, CK, SEAFCO, AMATA, and WHA

● Energy stocks which will benefit from the rising oil price, such as TOP, PTTGC, and SPRC

● Financial stocks which will benefit from reduced financial costs after the Monetary Policy Committee cut interest rates by 0.25 per cent, such as MTC, SAWAD, and KTC

● Exporter and food stocks which will benefit from weakening of the baht, such as KCE, HANA, DELTA, CPF, and TU

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