SET gains from rising crude oil price, 2nd phase of lockdown easing
The Stock Exchange of Thailand (SET) Index opened at 1,290.32, up 9.56 points, or 0.75 per cent, this morning (May 18).
A Krungsri Securities’ stock analyst expected the index to rise to 1,290 points before falling as energy stocks gained positive sentiment from a rising crude oil price.
“The price of crude oil rose more than US$30 [Bt961] per barrel due to increasing oil demand after several countries eased their lockdowns and Opec+ moved to cut oil production,” he noted.
“In addition, retail stocks gained positive sentiment after the Centre of Covid-19 Situation Administration approved the second phase of lockdown easing.”
The analyst said the index would fall due to uncertainty following a renewed US-China trade war after the United States tightened chip export rules to ban the shipping of chips to Huawei, while China might retaliate as well.
“We advised investors to beware of mass sell-offs due to a drop in the first-quarter performance of corporates,” he added.
He recommended investors buy these stocks:
● Energy stocks, such as PTT, PTTEP, TOP, PTTGC and SPRC, due to a rise in the price of crude oil.
● Retail stocks, such as CRC, CPN, HMPro, Global, Com7, and DoHome, due to the second phase of lockdown easing.
● Stocks whose second quarter performance would increase, such as CKP, Tasco and EPG.
