Thai electronics shares plunge after US cuts trade privileges

The price of shares in Hana Microelectronics (HANA) fell by 6.11 per cent to Bt42.25. SVI shares dropped by 5.24 per cent to Bt4.88, and Cal-Comp Electronics (CCET) fell 4.35 per cent to Bt2.20.

Supachai Wattanavitheskul, an analyst at Yuanta Securities, predicted the US move would only have a short-term impact, as institutional investors indulged in mass selloffs to take profit from the current high price of electronics and technology shares.

The closure of production lines in Europe due to the second Covid-19 lockdown was also hitting Thai electronic shares, he added.

"However, electronic and tech shares still have a chance to rise sharply in the long term, so we advise buying KCE and DELTA shares at the fair price of Bt43.50 and Bt197 respectively," he said.

Anakepong Putthapibal, an analyst at Asia Plus Securities, forecast the US move would not affect the Thai economy and exports next year since it was a drop in the ocean compared to Thailand’s Bt4.4-billion annual GSP privileges.

"However, we advise selling electronics stocks until the global economy recovers because the price of some electronic shares is high," he said

He added that the price of SVI shares had fallen sharply due to the Europe lockdowns, not the US move, since 80 per cent of SVI products are exported to European countries.

Delta Electronics (DELTA) director Anusorn Muttaraid said the US decision would have little impact on his company because it had production bases in several countries and its export volume to the US was low.

"The company just has to adjust its strategy to cope with the US move," he said, adding that Delta's performance is expected to improve this year and next.