With momentum from the US and Europe markets, the SET could see gains on Thursday, brokers and analysts say.
The United States Federal Reserve announced on Wednesday that it would join its European counterparts in slashing rates to stimulate growth after warnings that global economic growth could be halved from the outbreak of coronavirus.
The news should translate well to the Thai market.
The Thai Ministry of Finance had announced on Wednesday that they will introduce a stimulus package worth 100 billion baht in bid to support the Thai economy amid the outbreak. These could include cash handouts to low-income citizens, soft-loan policy for SMEs and businesses within the tourism sector and the changes in regulations for Super Saving Fund.
With positive factors from inside and outside the country, the SET should be trading in the range of 1366-1398 on Thursday, said Mongkol Puangpetra, head of research at KTB Securities (Thailand). Krungsri Securities assigned a range of 1390-1400.
The securities firms suggest shares within the energy group (PTT, PTTEP, TOP, and PTTGC) could be buoyed by news that OPEC and its allies are set to cut production by 1 million barrel per day at their meeting on March 5-6 amid a slowdown in global demand.
Shares within hotel (MINT, CENTEL and ERW), retail (CPALL, HMPRO and BJC) and construction (STEC and CK) sectors are also desirable as the cabinet is preparing a stimulus package for PPP projects worth 750 billion baht.
Maybank Kim Eng Securities said the Ministry of Transport’s measures to help airline businesses will be announced on March 6 and will give airports 50 per cent discount on landing and parking charges for the flights from high-risk countries for 9 months.
This should be good news for Airports of Thailand (AOT) as parking charges accounted for 12 per cent of the company’s total revenue. This could increase their profit by 3-4 per cent for 2020, the securities firm predicted.
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