FSS Recommends Keeping Eyes on Covid Situation, Expecting Thai Market to Weaken

Stocks in Asia traded lower on Thursday as investors are monitoring Covid-19 situation in the region closely.

 

As of 9:20 local time in Thailand on July 8, 2021, Nikkei fell 0.56%, SSEC dropped 0.25%, HSI decreased 1.20%, Kospi dipped 0.56%, while ASX 200 rose 0.40%.

Investors were weighing on the Covid-19 situation in Asia as Japan is expected to declare another state of emergency in Tokyo after seeing an uptick of Covid-19 cases in the past few days. Meanwhile, Covid-19 cases in Indonesia are also surging non-stop. The CEO of Indonesia’s largest oxygen company had just died from Covid-19.

 

Finansia Syrus Securities (FSS) expected SET Index to weaken, giving a support level at 1,570 points, while the energy sector would continue to pressure the market over falling oil prices from uncertainties of OPEC+ production policy.

In the meantime, the Covid-19 situation in Thailand reflected negative sentiment to the market as confirmed cases continued to spike and could be at risk of a full lockdown next week, which is negative to Domestic Play.

FSS recommended investors to focus on securities that have unique positive factor and the business that have no impact from Covid-19.