Analysts Keep a Close Eye on SET to Hold at 1,200 amid Covid Resurgence-Political Unrest

Stocks in Asia opened lower on Tuesday after the worst session since September for Dow Jones by 650 points or 2.29% to close at 27,685.38 points. Nikkei dropped 0.27%, SSEC fell 0.14%, HSI dipped 0.25%, ASX 200 plunged 1.65%, while Kospi rose 0.12%.

 

Finansia Syrus Securities (FSS) expected SET Index to move in the negative territory between 1,200 – 1,215 points in today’s session due to a dim economic outlook as the market put more weight on the resurgence of the coronavirus in the U.S. and Europe. The new outbreak could result in another lockdown or stricter restriction, which would slow down the economic recovery. Thus, the short-term fund flows were moved from risk to safe assets.

 

Kingsford Securities warned that SET Index could plunge below 1,200 points due to the domestic political issue and the resurgence of the coronavirus overseas. The security company recommended investors to wait & see and start accumulating stocks at a lower price such as CPF, TU, ICHI, XO, STA, STGT, COM7 and SYNEX.