The stock has more than tripled in price from its April low, boosted by optimism over its role as maker of components for artificial-intelligence data centres
[BANGKOK] Delta Electronics (Thailand) shares slide the most in four months after the stock exchange imposed market surveillance measures on the securities following their record-breaking rally.
The stock declined as much as 11 per cent, the most since Jun 4, before trimming losses to trade down 10 per cent at 10.25 am Bangkok time.
Shares in Delta, Thailand’s most valuable publicly traded company, can no longer be used as collateral in the calculation of credit lines, and investors must pay the full amount of cash prior to trading the securities, according to the first-level measures imposed by the Stock Exchange of Thailand (SET). The restrictions take effect from Friday (Oct 10) to Oct 30, the bourse said in a statement Thursday.
“We expect share selloffs” as that was the result when similar measures were imposed in the past, Citigroup Inc. analyst Sureeporn Sirisansaneeyawong in Bangkok wrote in a research note.
Delta Thailand shares had surged 25 per cent this month to Thursday, while the nation’s benchmark SET Index gained just 3.1 per cent. The stock has more than tripled in price from its April low, boosted by optimism over its role as maker of components for artificial-intelligence data centres.
Delta shares slid last November when the exchange also triggered market surveillance measures following a surge in the stock price. The securities fell to a three-year low before rallying.
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The company was not aware of any reason for the latest surge in its share price, it said in a statement published on Thursday.
Delta shares have been “consistently ranking as the most active for several consecutive days”, the exchange said. The company’s market capitalisation represents almost 15 per cent of Thailand’s equity benchmark index, it said. BLOOMBERG
