Analyst Expects SET to Head South as Covid-19 Cases Spike!

Krungsri Securities (KSS) stated that the SET Index ended the last trading day of 2020 down 13 points (-0.9%) at 1,449 in Bt87b turnover. There were concerns Congress would reject the US$900b stimulus package, and the selling pressures to mitigate risk ahead of the new year holidays amid the latest Covid-19 situation.

 

The SET Index is expected to head south to test 1,420 – 1,435 support level as Thailand experiences a resurgence of Covid-1 cases. The Government has imposed an emergency decree on 28 provinces to contain the outbreak, which will hurt economic activities and investor confidence. Sentiment is also pressured by tight valuation.

 

SET may consolidate this week, test 1,390-1,400 support level due to the rising number of domestic Covid-19 cases and the latest lockdown measures will hurt economic activities and earnings of listed firms. KSS recommended to sell to mitigate risks and buy back when the index drops To the support level. Focus on global plays and stocks that are projected to post strong profit during this pandemic.