SET Plunges 18pts amid Rising Concerns of Covid-19 Situation in Thailand

The Thai stock market fell 1.19% at the open on Monday amid rising concerns of the spreading of Covid-19.

 

As of 10:05 local time in Thailand, SET Index plunged 18.66 points or 1.19% to 1,555.71 points with a trading value of 7.6 billion baht.

This morning, Thailand reported an additional 11,784 Covid-19 cases, another daily record high, as the cumulative cases from this third wave since April are more than 386,000 cases. Thailand also had 81 new deaths.

 

Asia Wealth Securities (AWS) expected the SET this week (19-23 Jul) to move in a range of 1,535-1,605 points. The continuous downside was due to the possibility of strict measures to control COVID-19. This makes the chances of the SET breaking through the key resistance at 1,580 points very difficult in the short-term.

Investment strategy, AWS also recommended stocks with positive sentiments on a selective basis, stocks that benefit from a weak baht, logistic stocks, and hospital stocks. This week, the issues that need to be monitored are (1) COVID-19 situation: in Japan, the Tokyo Olympics (23 Jul) will begin at the end of the week, including the implementation of epidemic control measures in the country after the last weekend COVID-19 cases exceeded 10,000 per day, setting a new high record. (2) There will be a BoJ meeting (21 Jul) and ECB meeting (22 Jul).

AWS still expected continued accommodative monetary policy and (3) Global trade situation after the U.S. Senate passed a law banning the import of goods from Xinjiang in the case of human rights.