Likely additions to SET50 a good bet, Trinity tells
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Tisco Financial Group, Supalai and Esso (Thailand) may be removed from the Stock Exchange of Thailand's SET50 Index, while Central Plaza Hotel, Siam Global House and Ch Karnchang will likely be included on the index on July 2, according to estimates by Tr
Meanwhile, VGI Global Media, MBK, Univentures, WHO Corporation, Sriracha Construction, Golden Land Property Development, the Union Mosaic Industry, Thai Factory Development, RS, DEMCO, MDX and KCE Electronics are expected to be included on the SET100 Index.
Khon Kaen Sugar Industry, Ticon Industrial Connection, Sahaviriya Steel Industries, Workpoint Entertainment, Siamgas and Petrochemicals, GFPT, Polyplex (Thailand), Tipco Asphalt, SVI, Lanna Resources, Raimon Land and AJ Plast face removal from the index, Trinity said.
Visit Aogpipatanakul, managing director of Trinity Securities Co, said that statistically, listed companies likely to be newly included in the SET50 will outperform trade for about six weeks before inclusion, after which their prices will likely either maintain or drop. As a result, the company suggests investors buy shares in listed firms with significant potential to be included on the SET50 before July 2.
Those who do stand to see gains of at least 6 per cent, the firm believes.
Meanwhile, listed companies facing removal from the SET50 will underperform about three weeks before the move occurs, Visit said. As a result, the company recommends selling this stock, with a targeted benefit of 4.5 per cent.
The revised process for removing or adding stock to the SET50 Index uses value data from June 1, 2012, through May 31, 2013.
“The data we use to make these forecasts may differ from those eventually cited by the Stock Exchange of Thailand. However, our estimate is 99 per cent trustworthy,” he said.
