A Hard Fall for SET! Dropping 40pts amid Concerns of 2nd Wave and Slow Economic Recovery
A Hard Fall for SET! Dropping 40pts amid Concerns of 2nd Wave and Slow Economic Recovery.
A Hard Fall for SET! Dropping 40pts amid Concerns of 2nd Wave and Slow Economic Recovery.
16 มิ.ย. 2563

SET Index dropped more than 40 points in the afternoon session, following a sharp decline in global markets as well as the Dow Jones Futures, which indicated a lower open on Monday amid rising concerns over the second wave of the coronavirus outbreak.
 
Some states were reporting an uptick of new cases, especially Arizona, Texas and Florida. Meanwhile, the Fed’s statement of maintaining the policy rate at near-zero through 2022 concerned investors over the severity of the U.S. economy and the ability to recover from the loss.
 
As of 14:56 local time in Thailand (GMT+7), SET Index fell 40.42 points or 2.92% to 1,342.14 points with a trading value of 56.3 billion baht. The European markets opened with a loss of around 3%. Meanwhile, Dow Jones Futures slipped around 300 points or 3% ahead of its Monday’s session.
 
Kasikorn Securities (KS) expected SET Index to have a severe correction than any other market in the region due to its high valuation earlier. After an evaluation, KS expected SET to settle around 1,320+/-, based on EYG(%) at -0.5SD, 10 years prior.
KS recommended ICT (ADVANC) sector due to limited impact from COVID-19, while avoiding major banks, non-banks affected by policy rates and stocks benefiting from the U.S. and European businesses.