Delta share price jumps but experts voice caution
Delta Electronics’ share price rose by Bt68, or 20.8 per cent, to Bt395 per share in morning trade on Wednesday, but experts advised against investing in the company’s shares as its price was higher than the base value.
The price of Delta shares had risen more than Bt300 per share since yesterday as the company gained positive sentiment from the sharp rise of its subsidiary’s shares in Taiwan amid positive news of the firm’s Covid-19 test kit.
UOB Kay Hian strategist Kitpon Pripisankit said Delta’s share price went higher than many analysts’ forecast of between Bt200 and Bt250 per share.
“We advise investors to sell some of their Delta shares because its price has already responded to the above-mentioned positive sentiment,” he said.
Meanwhile, Yuanta Securities strategist Natapon Khamthakrue said Delta’s share price had risen higher than its base value and it would be listed on the SET50 Index again.
He added that Delta also gained positive sentiment from hopes over 5G and data centre trends, as well as speculation by Thai institutional investors.
“We advise investors to avoid buying Delta shares as its price would come under pressure from appreciation of the baht. Instead, we advise buying KCE Electronics shares as its price is cheap and is likely to move upside,” he said.
