The Thai stock market made a further dip in the afternoon session on Wednesday after Russian forces escalated attacks on Ukraine’s civilian areas.
At 15.30 hrs. local time in Thailand, the SET Index fell 7.19 points or 0.42% to 1,687.09 points.
Asia Plus Securities (ASPS) stated that while negative sentiment from the Russia-Ukraine conflict remains, the SET Index’s downside is limited. The SET is more like a haven than the majority of markets. Commodity plays account for almost one-third of the SET capitalization, providing valuable hedging against rising commodity prices. ASPS cited that Thailand is mostly unaffected by the Russia-Ukraine tension, as Russia accounts for less than 1% of Thailand’s trade. Moreover, market earnings continue to be robust and fund inflow continues in the SET.
Considering these factors, the SET Index is still safe and hardly affected by the Russia-Ukraine conflict. Hence, ASPS recommended stocks with particular positive factors that are still laggard from related commodity prices. Top picks are Thai Oil Plc. (SET: TOP) (energy), MK Restaurant Plc. (SET: M) (food), and Siam Makro Plc. (SET: MAKRO) (commerce).