SET slides on worries over Covid-19 second wave
The Stock Exchange of Thailand Index fell by 9.05 points, or 0.65 per cent, to 1,373.51 this morning (June 15).
A stock analyst at Krungsri Securities expected the index to fall between 1,370 and 1,375 points due to uncertainty following a second wave of Covid-19 in China and Japan, with 49 and 47 new cases, respectively.
“Also, the number of new Covid-19 cases in the US has increased in some states after lockdowns were eased, such as Arizona, South Carolina and Texas,” the analyst said.
“In addition, the index will be under pressure from a decline in the crude oil price because of the uncertainty due the second wave of Covid-19 and would expectedly lead to lower oil demand.”
He, however, said the index would rebound in response to the government’s suspension of night curfew and the fourth phase of lockdown easing.
“Investors expect the SET to announce stocks added to the SET50 and SET100 this week,” he added.
He recommended investors buy:
▪ Stocks that would be added to the SET50 and SET100, 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.
▪ Mint, Centel, ERW and AOT.
The SET Index on Friday fell by 14 points, or 1.02 per cent, closing at 1,382. Total transactions were worth Bt8.6 billion.
Foreign investors made a net sell of Bt2 billion in stocks and Bt290 million in bonds. There were 3,243 net short TFEX SET50 contracts.
