The share price of hospital stocks have been outperforming Thailand’s SET Index this year, as well as in the past month in speculation of stronger earnings due to more Covid-19 patients and international patients after the reopening.
The share price of Bangkok Chain Hospital Public Company Limited (SET: BCH) rose 7% this year and 9.7% for the past month. Chularat Hospital Public Company Limited (SET: CHG) gained 6% year-to-date and 12% for the past month. Bangkok Dusit Medical Services Public Company Limited (SET: BDMS) increased 10.87% this year and 10.40% for the past month. Meanwhile, SET Index was 1.2% positive this year and down 0.78% for the past month.
On the other hand, the Healthcare & Service sector rose 12.37% and 11.78% this year and for the past month, respectively, underlining that investors were speculating on the situation that would benefit the sector whether it be rising number of Covid-19 patients or an increase in medical tourists from border reopening and easing Covid-19 restriction for tourist arrivals.
BCH and CHG have the highest Relative Strength Index (14 Day) among securities in SET100 at 80.65% and 79.17%, respectively. Nevertheless, The two securities and BDMS were among the top of the list since early March.
THB21.30, THB3.84 and THB25.45 are a 5-day moving average for BCH, CHG and BDMS, respectively. Meanwhile, THB19.65, THB3.51 and THB24.11 are a 30-day moving average for the aforementioned securities.
As the reopening trends and speculation on higher revenue from Covid-19 patients could go on for several months as the share prices of BCH, CHG and BDMS are moving toward their respective consensus target price of THB24.37, THB4.21 and THB27.46 per share.