By THE NATION
"Analysts believe that when STGT announces its estimated Bt800 million to Bt900 million profit in the second quarter of 2020, the share prices of STGT and its parent STA will return to normal,” he said.
On Wednesday, STA's share price dropped by 11.5 per cent to Bt25 per share with trading value of Bt3.22 billion, while STGT's share price dropped by 6.02 per cent to Bt78 per share, with trading value of Bt2.13 billion. The sudden change drew the attention of investors.
“Personally, I believe that STGT still has strong value in the market as the demand for rubber gloves is still climbing across several industries,” he said. “I suggest holding on to the shares despite the news of a Covid-19 vaccine being nearly successful for human trials, as it would take some time before the vaccine will be available for everyone.”
Meanwhile, Anakephong Phutthapibal, deputy director of research at Asia Plus Securities, has said that the share prices of STA and STGT had gone down due to investors dumping the shares to take short-term profit, after both shares had climbed for a while. “Some investors may also view the possible arrival of Covid-19 vaccine as a negative factor for the glove industry and decided to sell the shares to secure the profit,” he said. “More investors may decide to sell their shares in the coming weeks, if STGT’s announced profit does not meet their expectation.”