Major stock markets in Asia traded lower on Monday as concerns over the new Covid-19 omicron variant extended from last week to weigh the market down.
As of 10:15 local time in Thailand on November 29, 2021, Nikkei dipped 0.02%, SSEC slipped 0.14%, Hang Seng Index dropped 0.95%, ASX 200 fell 0.23% and IDX Composite retreated 0.24%.
Thailand’s SET Index opened at 1,604.38 points, decreased 6.23 points or 0.39%.
Last Friday, global stock markets traded in negative territory with increasing concerns over the new Covid-19 omicron variant first found in South Africa and now spreading in some European countries.
Despite the warning from the World Health Organization (WHO) against any overreaction before the variant was thoroughly studied, many countries including Australia, Canada, the European Union, Japan, and the United States had raised their guard against omicron.
Mr. Ekpawin Suntarapichard, investment strategist of the Siam Commercial Bank Securities (SCBS), through “Kaohoon Jor Talad Program” on November 29, 2021, stated that the SET Index could rebound in today’s session, seeing a gain in Dow Jones Futures and a slow decline in regional markets, coupled with a recover in oil prices. Still, the strategist advised investors to monitor the situation with a limited upside for the stock market at 1,620-1,630 points and a resistance level at 1,600-1,575 points.
Mr. Suntarapichard recommended stocks that would benefit from the Covid-19 situation such as BCH, CHG, STGT and STA. Meanwhile, reopening stocks are underperforming due to the current situation, recommending to accumulate if SET Index falls below 1,575 points. In addition, Mr. Suntarapichard expected export stocks such as XO and TU to benefit from weakening Thai baht.