Kaohoon’s Top News on April 28, 2022

Headline: FTSE reduces SCB weight in All-World Index over lower float

FTSE Russell announced that it will reduce SCB X Plc. (SET: SCB)’s weighting in the FTSE All-World Index due to lower float. The downgrade in weighting will be effective at the closing of April 28, 2022, resulting in an outflow around THB2,800 million.   According to analysts, this will have no impact on SCB’s fair value, as the company’s fundamentals will remain unchanged despite its transformation into a holding company. Analysts rate the stock “BUY” with a target price of THB160.00.

Headline: Analyst maintains positive view on IVL, seeing limited impact from Russia’s supply cut

Suwat Sinsadok, Managing Director of FSS International Investment Advisory (FSSIA), says traders should accumulate Indorama Venture Plc. (SET: IVL) after the company’s share price decreased in recent days due to concerns about Russia’s gas delivery halt. He remained optimistic about IVL, stating that the impact of Russia cutting gas supplies to Poland and Bulgaria would be less than 1%. IVL is estimated to earn TB9,539 million in 1Q22, with analysts recommending a “BUY” rating and a target price of THB70.00.


Headline: Vongsayam to sign a contract on May 3 to operate the eastern region’s main water pipeline

The Treasury Department anticipates concluding the agreement with Vongsayam Building and signing a contract on May 3, allowing Vongsayam to be the successful bidder for the management of the eastern region’s main water pipeline, valued at THB25 billion.


Headline: RAM acquires 5% stake in EKH for potential growth in provincial areas

The board of directors of Ekachai Medical Care Plc. (SET: EKH) approved capital increment on April 26 by issuing new ordinary shares of the company for a Private Placement of up to 40 million shares at a price of THB7.20 per share, of which 35 million shares will be allocated to Ramkhamhaeng Hospital Plc. (SET: RAM) and 5 million shares will be allocated to Ratchayut Jeerapornprapha, or Dr. Win. Objectives of the capital increase are to increase bargaining power in ordering medicines and medical supplies including medical equipment, and to have funds available for future business expansions.


Headline: The TRUE-DTAC merger appears to be on hold, with analysts expecting a 1-3 month delay 

The merger between True Corporation Plc. (SET: TRUE) and Total Access Communication Plc. (SET: DTAC) appears to be on hold, as the National Broadcasting and Telecommunications Commission (NBTC) recently established four subcommittees to review the merger. Meanwhile, the Ad hoc Committee has been directed to postpone consideration of the merger. Analysts anticipate a delay of 1-3 months in the amalgamation of True and DTAC, but believe it will have little effect on their fundamentals.