Friday, March 05, 2021

Delta among seven stocks likely to be impacted by new SET regulations

Jan 22. 2021
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By The Nation

Seven low free-float stocks are at risk of being delisted from the SET50 and SET100 indices after the Stock Exchange of Thailand (SET) implemented free float adjusted market capitalisation regulations.

An analyst at Asia Plus Securities said DELTA, GPSC, AWC, VGI, BPP, CKP and ACE would be delisted from SET50 and SET100 indices due to SET's new regulations.

He added that passive funds would reduce investment in MAKRO by 84 per cent, DELTA by 49 per cent, SCC by 31 per cent, GULF by 39 per cent, BAY by 47 per cent and GPSC and AWC by 43 per cent.

Somchai Amornthum, executive vice president at Krungthai Asset Management, said SET's free float adjusted market capitalisation regulations would help investors to manage investments in line with real market conditions.

"However, we advise investors to monitor how many low free float stocks will have reduced investment and be delisted from SET50 and SET100 indices before adjusting investment portfolio because domestic funds would not have many low free-float shares," he said.

Thidasiri Srisamith, executive vice president at Kasikorn Asset Management, said apart from passive funds' move to reduce investment in low free-float stocks, investors should monitor other factors, such as listed companies' liquidity and growth potential, stocks' fair price and funds' overview.

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