The Stock Exchange of Thailand (SET) is expected to go down on Friday as the OPEC+ meeting did not turn out the results investors were expecting, while Good Friday will close down most major markets.
SET continued to fluctuate on Thursday as the index gave away a 37 point gain during the day to close up at just 4.7 points. The index closed at 1210.48 points, up 0.39 per cent from Wednesday.
Oil shares were being sold yesterday as investors lock in profit ahead of the OPEC+ meeting and G20 meeting on Friday. The OPEC+ meeting resulted in a production cut of 10 million barrels per day between May and June to shore up prices.
However, prices still dropped as the WTI crude fell 9.29 per cent to US$22.76 per barrel while Brent crude declined by 4.14 per cent to $31.48 per barrel on Friday morning. Another production cut of 5 million barrels per day is expected by the G20 group on Friday.
Krungsri Securities expects the SET to swing in the range of 1200-1230 as the US Federal Reserves announced on Thursday they will inject another $2.3 trillion into the world’s largest economy.
But due to the disappointment from investors by the meager cut, the 9 per cent drop in oil prices will continue to put pressure on the index. At the same time, US’ jobless claims rose by another 6.6 million in the week ending April 4, while the number of confirmed coronavirus cases in the US has already surpassed 468,000.
Over the past three weeks, more than 16 million Americans have sought out unemployment benefits. It is one of the reasons for the Fed to continue to flood the economy with liquidity.
Tisco Securities expects the SET to be down on Friday due to the disappointing result of the OPEC+ meeting. The 10 million barrels cut for one month will not compensate the missing demand of around 15 million barrels per day. Tisco sees the index in the range of 1200-1245 on Friday.
The firm said with bourses in the US, Europe and Hong Kong shut down, the investing mood will be subdued as Easter looms. Investors should keep an eye on the International Monetary Fund’s latest GDP analysis while banks’ first quarter results for 2020 will begin to come out soon as well, they added.
