SET at Risk of Plunging as Concerns over Covid-19 Situation Weigh on Foreign Investors
The analyst expected SET Index to continue plunging on Thursday from foreign investors' selloff in concerns of Covid-19 situation in Thailand.
CGS-CIMB Securities expected the Thai stock market to move sideway-down this morning amid continuous selloff from foreign investors after a huge retreat yesterday by more than 10 billion baht due to concerns over Covid-19 situation and the delay in vaccine rollout.
Meanwhile, the new measure to calculate free float was delayed, which affected the banking sector that was speculated to gain the most benefit from this measure, and there could be a speculation for securities that still benefited from the previous free float measure such as DELTA.
In addition, the bank group is at risk of setting up high reserves due to government measures to suspend debt repayment, while the market might have concerns on the revised down Thailand’s GDP from the resurgence of Covid-19, resulting in more downside to corporates’ earnings. The analyst expected a support level at 1,540-1,530 points and a resistance level at 1,555-1,560 points.
