Shares of Chularat Hospital Public Company Limited (SET: CHG) faced continued downward pressure today, extending losses as the MSCI index rebalancing will be taking effect at the closing price of today’s session.
CHG’s stock price fell by nearly 2% to THB 1.48 per share, continuing its slide from THB 1.63 before the announcement of its exclusion from the MSCI Global Small Cap Index. This downward trend has pushed the stock’s Relative Strength Index (RSI) down to 23, ranking it near the absolute bottom of the SET100 Index and indicating heavily oversold conditions.
Maybank Recommends Strategic Buy
Despite the recent technical sell-off, Maybank Securities (Thailand) has issued a strategic recommendation, advising investors to buy back CHG at today’s closing price. Maybank has set a target price of THB 1.90 for the stock, representing significant upside from current trading levels.
The broker noted that the share price of CHG has dropped since MSCI announced its removal from the MSCI Global Small Cap Index. With passive fund outflows expected to culminate at the market close, today’s volatility is seen as an attractive entry point for long-term investors.
Strong Fundamentals Support Earnings Turnaround
While the index exclusion has triggered short-term mechanical selling, Maybank emphasizes that CHG’s underlying business fundamentals remain strong. The securities firm expects earnings to recover in the coming quarters, driven by key regulatory tailwinds.
Specifically, Maybank points to a potential increase in social security reimbursement rates expected to take effect during 4Q26 to 1H27.
As a prominent healthcare operator with a substantial social security registered patient base, CHG is highly leveraged to benefit from these rate adjustments, supporting a robust fundamental recovery.
MSCI August 2026 Review
The selling pressure on CHG comes amid a wider index reshuffling by MSCI Inc., where the market anticipates elevated volatility toward today’s closing bell as passive funds adjust their portfolios. Under the August 2026 review:
- MSCI Global Small Cap Index: CHG and Jasmine Technology Solution (JTS) are being deleted, while Gunkul Engineering (GUNKUL) and Hana Microelectronics (HANA) are being added.
- MSCI Global Standard Index: No additions or deletions have been made for Thai equities in this cycle.
