SET falls due to uncertainty about second wave of Covid-19 cases
The Stock Exchange of Thailand Index slid to 1,361.62, down 35.15 points, or 2.52 per cent, on Friday morning (June 12).
A stock analyst at Krungsri Securities expected the index to fall to between 1,350 and 1,365 due to uncertainty following the second wave of Covid-19 outbreak after several countries eased lockdown measures.
“Investors are also worried about the US economy after the Federal Reserve forecast US gross domestic product this year would contract by 6.5 per cent and the unemployment rate would be 9.3 per cent,” the analyst said.
“In addition, energy stocks would be under pressure after the price of crude oil dropped sharply due to uncertainty following the decline in demand for petrol if the second wave of Covid-19 outbreak emerges.”
He recommended investors buy:
▪ Stocks that would be added to the SET50 and SET100 calculation, such as BPP, TTW, ACE, DOHOME, RBF, SIRI, SISB, TVO and WHAUP.
▪ Stocks whose second-quarter performance will improve, such as CKP, TASCO, STA and RS.
▪ Defensive stocks, such as INTUCH, TTW and DIF.
The SET Index on Thursday fell by 22 points, or 1.55 per cent, closing at 1,397 the same as other Asian indices due to uncertainty following the second wave of Covid-19 cases.
Total transactions were worth Bt8.3 billion. Foreign investors made net sell of Bt753 million in stocks, but also net buy of Bt1.951 billion in the bond market. There were 3,210 Net Short TFEX SET50 contracts.
