SET Index continues slide amid global concerns over epidemic, economic slowdown
The Stock Exchange of Thailand (SET) Index fell by 11.09 points, or 0.77 per cent, to 1,428.01 in morning trade on Wednesday (February 26).
Krungsri Securities has predicted that the SET Index will fall between 1,415 and 1,420 due to the worldwide spread of Covid-19 virus, which is hammering the global economy and oil prices.
A stock analyst at Krungsri Securities said that recently the US had warned its people to prepare for a serious epidemic in the country after more Covid-19 patients were found in Europe, including Spain, Switzerland, Croatia, and Austria.
“Moreover, the oil price fell sharply due to uncertainty following a contraction of demand with pressure on energy shares,” the stock analyst said. “Therefore, we suggest buying stocks when the price is low by focusing on stocks which will benefit from specific support factors.”
Three types of stocks are recommended:
● Exporters and food stocks, which will benefit from the weakening baht, such as KCE, HANA, DELTA, CPF, and TU
● Financial stocks, which will benefit from reduced financial costs after the Monetary Policy Committee cut the interest rate by 0.25 per cent, such as MTC, SAWAD, and KTC
● Defensive stocks which expected to pay high dividends, such as ADVANC, INTUCH, and TTW
“Morgan Stanley Capital International’s move to boost investment in AWC, BTS, and BDMS would be effective on February 28,” the stock analyst added.