Thailand’s major power stocks rose on Wednesday after oil prices fell as much as 10% overnight as recession fears grew.
As of 11.26 hrs. local time in Thailand, the share price of B.Grimm Power Pcl. (SET: BGRIM) rose THB1.75/share or 5% to THB36.75/share, with a trading value of THB630 million.
The share price of Global Power Synergy Pcl. (SET: GPSC) rose THB1.75/share or 2.71% to THB66.25/share, with a trading value of THB504 million.
The share price of Gulf Energy Development Pcl. (SET: GULF) rose THB0.75/share or 1.61% to THB47.25/share, with a trading value of THB600 million.
According to KGI Securities, the rally in most power stocks this morning was a reaction to oil drops of up to 10%, breaking below US$100 last night, which fueled expectations that cost price and natural gas should be lowered down, and US bond yields fell by 3%. As a result, there is a strong buyback in safe haven stocks, particularly power shares.
KGI recommends investors to accumulate GPSC with a THB82 target price and BGRIM with a THB41 target price.