SET plunges along with Asian stocks due to concerns over Covid-19
The Stock Exchange of Thailand (SET) Index fell sharply by 30.38 points, or 2.03 per cent, to 1,464.71, in morning trade valued at Bt21.594 billion.
Krungsri Securities expects the SET Index on Monday (February 24) to fall to between 1,475 and 1,480 due to uncertainty following the Covid-19 outbreak which has pressured the global economy, resulting in gold price hitting its highest level in seven years and an inverted yield curve for 10 years and 3 months US bonds.
A stock analyst at Krungsri Securities said that investors remained at risk after the virus situation worsened and South Korea evaluated the situation at the highest level.
Baht continues to slide amid increasing worries about Covid-19
“Meanwhile, Italy is preventing people from travelling in the northern areas, which are affected by the virus outbreak. This epidemic will pressure the global economy to slow down and plunge the crude oil price to fall sharply,” the stock analyst said.
“Therefore, we have advised investors to buy stocks when the price is weak, focusing on stocks that have specific support factors.”
Four types of stocks are recommended:
● Exporters and food stocks, which will benefit from the weakening baht, such as KCE, HANA, DELTA, CPF and TU.
● Contractors and construction material stocks, which will benefit after the government presented the 2020 Budget Act to His Majesty the King, such as CK, STEC, SEAFCO, and TASCO.
● Financial stocks, which will benefit from reduced financial costs after the Monetary Policy Committee cut the interest rate by 0.25 per cent, such as MTC, SAWAD and KTC.
● Stocks expected to pay high dividends, such as TISCO, SIRI and LH.
Elsewhere in Asia, the change in stock markets were as follows:
China’s Shanghai SE Composite Index was 3,029.22, down 10.44 points, or 0.34 per cent, while Shenzhen SE Component Index was 11,710.43, up 80.73 points, or 0.69 per cent.
Hong Kong’s Hang Seng index was 26,903.84, down 404.97 points, or 1.48 per cent.
South Korea’s KOSPI index was 2,094.41, down 68.43 points, or 3.16 per cent.
Taiwan’s TAIEX Index was at 11,546.93, down 139.42 points, or 1.19 per cent.
