The Stock Exchange of Thailand (SET) index ended the morning trading session on an upbeat note with a 5% rise buoyed by a pick up in global crude prices and a fall in Covid-19 fatalities in Europe.
The SET closed the session at 1,199.69 points, up 60.85 points or 5.3%, in turnover worth 50 billion baht.
Shares of Global Power Synergy Plc (GPSC) rose the most by 12.7%, followed by AOT (12%), GULF (9.4%) PTTEP (8.2%) and PTT (6.3%).
Improved oil prices and the slowing of Covid-19 deaths in some countries helped shore up investment sentiment, said an analyst at UOB Kay Hian Securities Thailand.
The rally in oil prices has continued for five days straight, with prices of West Texas Intermediate crude and Brent crude rising by 29.82% and 45.2%, respectively, the analyst said.
The Opec meeting scheduled for this Thursday warrants a close watch, with optimism that Saudi Arabia and Russia would work together to cut oil production at the meeting.
Despite an increase in Covid-19 infections globally, the number of virus fatalities has been lower, suggesting that the outbreak may have already peaked in some countries, the analyst said.
However, “the stock market's upside starts will begin to limit at the +/- 1,200 level due to the impact of Covid-19 on the economy and listed companies' profits,” according to Finansia Syrus Securities.
Gold remained a good safe haven asset for investment for the next six months against the backdrop of uncertainties, according to FSS.