SET sees leap in big-lot deals as market reacts to news of Cabinet reshuffle
Big-lot transactions worth over Bt20 billion were executed in July in the Stock Exchange of Thailand (SET) in response to the news of an upcoming Cabinet reshuffle, experts said.
Big lot transactions from July 1 to 13 was Bt20.9 billion compared to Bt23.7 billion in the whole of June. Normally, there were 20 to 30 big-lot transactions per day, but there were 139 big-lot transactions worth Bt13.9 billion on July 9 alone.
On July 9, Airports of Thailand (AOT) had the biggest transaction valued at Bt1.76 billion at an average price of Bt57.47 per share, followed by Bangkok Dusit Medical Services (BDMS) of Bt806.43 million, at an average price of Bt22.63 per share and CP All (CPALL) of Bt705.89 million, at an average price of Bt67.02 per share.
However since the beginning of July, Sri Trang Gloves (Thailand) had the biggest transaction of Bt1.85 billion at the average price of Bt67.09 per share, followed by AOT of Bt1.76 billion at the average price of Bt57.47 per share and CP All (CPALL) of Bt1.07 billion at the average price of Bt67.25 per share.
Jaroonpan Wattanawong, head of research at Maybank Kim Eng Securities (Thailand), said that after news about the Cabinet reshuffle was reported, over 80 companies had big-lot transactions on the afternoon of July 9.
"This showed that third parties who are likely to get a position in the Cabinet had started selling their shares to separate assets because they may have to be involved with the concession agreement or other government jobs," he said. "However, the third party's move to separate assets would not affect the stock's fundamentals because it is just a transfer of shares to other private funds or persons with administrative duties."
A stock analyst at Country Group Securities advised investors to monitor the Cabinet reshuffle because if the market is not satisfied with a new economic management team, it may result in a market correction.
"Also, we advise investors to hold cash while those who speculate on profits in the short term should pick up shares that have strong fundamentals," the analyst said. "We recommend buying stocks when the SET Index falls below 1,300."
Meanwhile, a stock analyst at Asia Plus Securities said that the Cabinet reshuffle is an important factor that determines the economic direction because it is necessary to have a strong economic management team to push recovery measures, which is currently considered an urgent matter.
