Monday, January 18, 2021

Tourism-related stock prices soar from positive news on Covid-19 vaccine

Nov 11. 2020
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By The Nation

The price of tourism-related stocks on Tuesday rose sharply after Pfizer and BioNTech announced their coronavirus vaccine was more than 90 per cent effective and they would register the vaccine with the US Food and Drug Administration next week.

The stock price of Minor International (Mint) rose by 26.23 per cent, or Bt4.80, to Bt23.10 per share, Asset World Corporation (AWC) increased by 20 per cent, or Bt0.68, to Bt4.08 per share and Airports of Thailand (AOT) was up by 18.34 per cent, or Bt10.50, to Bt67.75 per share.

CGS CIMB Securities senior vice president of research Kitichan Sirisukarcha said stocks related to tourism, hotels, airlines, commercial banks and oil gained positive sentiment from the progress of a Covid-19 vaccine.

“However, we advise investors buying shares that prices are still lower than the base and business turnover will improve because the price of these stocks may face correction in the short term after rising sharply yesterday [on Tuesday],” he said.

He recommended buying Mint as the group’s business turnover is expected to rise sharply if many countries are able to contain the spread of the coronavirus, Thaioil (Top) and Star Petroleum Refining (SPRC) as fuel demand is expected to increase, and Central Retail Corporation (CRC) and Central Pattana (CPN) as these would benefit from tourist spending.

Kasikorn Securities senior vice-president Sorrabhol Virameteekul said stocks related to transport, construction and media also gained positive sentiment from progress in the development of a Covid-19 vaccine.

For investors who can tolerate risks, he advised buying construction, media and financial stocks as they can escape the impact of the political unrest and their prices were cheap, such as Bangkok Expressway and Metro (BEM) at Bt10.60 per share, JMT Network Services (JMT) at Bt39 per share, Muangthai Capital (MTC) at Bt64.5 per share, CH Karnchang (CK) at Bt29.60 per share and Tisco Bank (TISCO) at Bt84 per share.

Yuanta Securities (Thailand) strategist Natapon Khamthakrue said Thai stocks have responded to the positive news of a Covid-19 vaccine faster than expected.

He advised investors making selective buys in stocks that prices would rise, such as Bangkok Dusit Medical Services (BDMS) at Bt24.30 per share, Ekachai Medical Care (EKH) at Bt4.90 per share, Central Plaza Hotel (Centel) at Bt29.30 per share and Kasikorn Bank (KBank) at Bt100.50 per share.

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