The Thai stock market tumbled in line with regional markets yesterday morning after the report of Russia's attack on Ukraine's Zaporizhzhia nuclear power plant stoked fears of nuclear catastrophe.
The SET Index dropped 1.44% to close at 1,671.72 yesterday.
Asia Plus Securities (ASPS) recommends investing in stocks related to weaponry in international markets, including Lockheed Martin (LMT US), Boeing (BA US), Northrop Grumman (NOC US), Leidos Holdings (LDOS US), General Dynamics (GD US) and Raytheon Technologies (RTX US) to capture high returns during the war.
People can invest in foreign stocks through several Thai securities firms, including ASPS, said the brokerage.
Investors can also diversify in weapon-related exchange-traded funds such as iShares US Aerospace & Defense (ITA US), which has US$2.6 billion in assets under management, a 22% stake in RTX US and 18% in BA US.
ASPS suggested investing in an arms company during the war, turning the crisis into opportunity.
After news of the attack on the nuclear plant broke, the Nikkei 225 Index opened at 26,421.85 points, down 155.42 points or 0.58%, while the Hang Seng Index opened at 21,879.13 points and fell 588.21 points, or 2.62%.
Natapon Khamthakrue, vice-president of Yuanta Securities, said because yesterday is the last working day of the week, investors opted to sell to reduce their exposure to risk as it is unclear how the North Atlantic Treaty Organization will respond to Russia's action.
He said in terms of the rising crude oil price, the price has neared its peak.
The oil price may fall in the short term as many countries have started imposing measures to control energy prices, said Mr Natapon.
CGS-CIMB Securities said animal food businesses have been affected by the Russia-Ukraine war because the cost of raw materials such as wheat are now much higher.
Domestic stocks in that sector that are now suffering include Charoen Pokphand Foods (CPF), GFPT Plc, Thaifoods Group (TFG), Thai Union Group (TU) and R&B Food Supply (RBF), said the brokerage.
