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Investors eye power plant stocks for safety’s sake


Stocks of power plants rose sharply on Monday as the new wave of Covid-19 infections has triggered investors to opt for safe stocks, experts said.

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At closing on Monday, the share price of Energy Absolute (EA) had risen by 8.63 per cent to Bt53.50, Global Power Synergy (GPSC) rose by 7.12 per cent to Bt79, B Grimm Power (BGRIM) rose by 5.15 per cent to Bt51 and Gulf Energy Development (GULF) rose by 3.65 per cent to Bt35.50.

Sorrabhol Virameteekul, Kasikorn Securities senior vice-president, said power plant stocks have risen sharply due to investors’ move to seek safe stocks that can generate regular revenue amid worries over the Covid-19 outbreak.

He added that the price of power plant stocks have risen beyond 30 per cent since the start of the Covid era in March last year.

"We recommend investing in power plant shares, but investors should pick shares that are not higher than the fundamentals and are likely to rise, such as GPSC and EGCO,” he said.

Yuanta Securities investment analyst Piyapat Patarapuvadol said investors were seeking stocks that are cheap but whose performance has improved.

He added that power plant shares also gained positive sentiment from the trend of electric vehicles and appreciation of the baht.

"Many investors placed their hopes on GPSC shares in response to the news of PTT Exploration and Production [PTTEP] seeking power plant partners," he added.

Published : January 05, 2021

By : The Nation