SET slides amid fears of new US-China trade war
The Stock Exchange of Thailand (SET) Index dropped in Friday due to worries over the renewal of a US-China trade war and increasing jobless claims in the US.
The SET Index opened at 1,311.03, down 9.66 points, or 0.73 per cent, on Friday (May 22) morning.
A Krungsri Securities stock analyst expected the index to fluctuate between 1,310 and 1,330.
The market gained positive sentiment from the rising crude oil price and the Thai Monetary Policy Committee's move to cut the key interest rate to 0.50 per cent to stimulate the economy.
“The price of crude oil rose to over US$33 per barrel after US crude stockpiles dropped by 5 million barrels,” the analyst said.
However, the index would be under pressure due to uncertainty following the renewal of the US-China trade war, the increasing number of Americans claiming jobless benefits, and the tight SET valuation.
“Recently, the US Senate passed the Holding Foreign Companies Accountable Act that could bar some Chinese companies from listing on US exchanges,” the analyst said.
“Meanwhile the US reported another 2.44 million Americans claiming jobless benefits.”
The analyst recommended investors to buy these stocks:
● Energy stocks, such as PTT, PTTEP, TOP, PTTGC, IRPC and SPRC, due to a rise in the price of crude oil.
● Financial stocks, such as KTC, SAWAD, MTC, JMT and BAM, due to a drop in interest cost.
● Stocks whose second quarter performance would improve, such as CKP, TASCO, STA and EPG.
“We advise investors to follow the Ministry of Commerce’s report about Thai foreign trade in April,” the analyst said.
