Major stock markets in Asia were fluctuating, but mostly higher, in the morning session on Wednesday after a series of plummets since last Friday amid concerns on the Covid-19 omicron variant as the latest report from Moderna’s CEO predicted that existing vaccines will be less effective against this new strain.
Thailand’s SET Index opened at 1,575.95 points, increased 7.26 points or 0.46%.
As of 10:12 local time in Thailand on December 1, 2021, Nikkei rose 0.81%, SSEC increased 0.02%, Hang Seng Index jumped 1.59%, ASX 200 fell 0.25% and IDX Composite advanced 0.83%.
Yesterday, in the interview with Financial Times, Moderna’s CEO predicted that existing vaccines will be much less effective against omicron than earlier strains and warned that it would take months before drugmakers can manufacture new variant-specific vaccines at scale. Bancel also suggested that the current vaccines may need to be modified next year due to the high mutation of the virus.
Mr. Chaiyot Jiwangkul, Assistant Director of Krungsri Securities (KSS), through “Kaohoon Jor Talad Program” on December 1, 2021, stated that he expected the Thai stock market to price in the negativity from omicron and believed SET Index to rebound, adding that a sharp plunge will have a sharp rebound.
Mr. Jiwankul asserted that South Africa, the first country to report an omicron variant, has steady daily Covid cases, while the most concerning should be in Europe that saw an acceleration in Covid-19 cases.
As for today’s top pick, Mr. Jiwangkul chose Eastern Polymer Group Public Company Limited (SET: EPG), citing strong 4Q21/FY1Q22 in every segment, giving target price at ฿16.00/share with a support level at THB 10.50-10.80and a resistance level at THB12.00 per share.
