The Stock Exchange of Thailand (SET) Index on Tuesday (February 25) fell to 1424.52 points, or 0.77 per cent (as of 11.23am), following on from its almost 4 per cent slide on Monday when it closed at 1,435.56 points.
Krungsri Securities’ analysts expected the SET Index on Tuesday (February 25) to fall to between 1,420 to 1,425 points, as investments are pressured by a rapid increase the number of new Covid-19 patients in South Korea, Iran, and Italy.
These patients, in addition, to the global economic slowdown, were a negative factor for investments in the stock market, as well as on the oil price.
Investors are eschewing risk and putting their money in safe-haven assets such as US bonds and gold, the analysis said.
The market might go up along the way as some stocks would be driven by positive factors. A technical rebound is also expected when the market reaches the oversold threshold. Investors are advised to buy shares when the SET Index drops.
The analysts suggested investments in stocks of export businesses in electronics (KCE, HANA, DELTA) and food (CPF, TU), due to the impact of the baht’s depreciation.
They advised investors to pick financial stocks, such as MTC, SAWAD, and KTC, since the cost for these businesses has reduced after the Monetary Policy Committee lowered the key interest policy by 0.25 percentage point.
They also recommended defensive stocks with high dividends, such as ADVANC, INTUCH, and TTW.