Pheu Thai's poll showing takes a toll on Sansiri's share price
The stocks of real estate developer Sansiri Plc, whose former CEO Srettha Thavisin is a Pheu Thai prime minister candidate, fell by 13% in morning trade on Monday in what is seen as a reflection of investors’ shock at the party’s election defeat to its ally.
The shares of Sansiri with the SIRI symbol on the Stock Exchange of Thailand were traded at 1.80 baht a piece, a drop of 0.09 baht, or 4.8%, from the previous closing price of 1.89 baht.
The price had dropped to 1.64 baht, its lowest of the day at 10.05am, marking a 13.22% plunge.
It rebounded to 1.75 baht at lunch break.
Thanyathorn Songwut, an analyst of Finansia, said investors had earlier speculated on a rise in SIRI's share price as they had expected Pheu Thai to be the next coalition leader. The demand for the developer's shares rode hopes of the price rising even further.
She said when the results became clear that Pheu Thai had lost to Move Forward, SIRI's share price dropped.
However, she recommended that long-term investors buy up the shares for medium and long-term profits because Sansiri was backed by good performance.
Thanyathorn said Sansiri would announce its results on Tuesday and it was expected that the growth would be over 300%.
Srettha had quit all posts in Sansiri after he entered politics as Pheu Thai's PM candidate.
