Overall negative sentiment limits upside for SET
The Stock Exchange of Thailand (SET) Index rose by 3.06 points, or 0.20 per cent, to 1,528.17 on Tuesday morning.
The SET Index closed at 1,525.11 on Monday, up 3.19 points or 0.21 per cent. Transactions totalled THB66.33 billion with an index high of 1,525.73 and a low of 1,513.71.
A Krungsri Securities analyst expected the SET Index on Tuesday to fluctuate between 1,515-1,535 points. The market’s condition indicated negative sentiment from the weakening of crude oil price and manufacturing sector figures of the US and China in July.
The extension of pandemic lockdown measures for an additional month and the expansion of the "dark red" zones to 29 provinces are also factors in the negative sentiment.
However, mass buy-ups of shares on specific positive sentiment sectors, such as the export sector and improved second quarter corporate results are expected to support the rebound of the index.
Selective buying is recommended for the following stocks as an investment strategy:
▪︎ Exporters like HANA, KCE, TU, CPF, ASIAN and EPG, which will benefit from the baht's depreciation.
▪︎ BCH, CHG, BDMS, DOHOME, BEM, CKP, CBG, OSP, ICHI, GPSC, BEC, GUNKUL, JWD, WICE, SONIC and NER, which are expected to report improved results for the second quarter.
