Major poultry stocks dropped sharply on Tuesday after the Commerce Ministry has asked retailers and shops to lower the price of bottled palm oil, chicken and meats.
As of 12.30 hrs. local time in Thailand, the share price of Thaifoods Group Pcl. (SET: TFG) fell THB0.70/share, or 10.94%, to THB5.70/share, with a trading value of THB166 million.
The share price of GFPT Pcl. (SET: GFPT) fell THB1.10/share, or 6.63%, to THB15.50/share, with a trading value of THB117 million.
The share price of Charoen Pokphand Foods Pcl. (SET: CPF) fell THB0.75/share, or 2.88%, to THB25.50/share, with a trading value of THB791 million.
The Deputy Government Spokesperson Ratchada Thanadirek said on Monday that the Ministry of Commerce is working to reduce the price of bottled palm oil even further. The Ministry has asked the retailers, shopping malls, and local businesses to lower the price of bottled palm oil by THB3-THB4 within the week, following a reduction of THB5-THB6 last week.
The Commerce Ministry also asked for cooperation from slaughterhouses to reduce the price of chicken and pork as costs declined.
Despite being viewed as a means of decreasing living expenses, it is considered as a negative sentiment towards poultry shares, such as CPF, GFPT, and TFG.
Finansia Syrus Securities stated that it will continue to monitor meat prices since it anticipates that demand and supply will have a significant impact on the pricing, and it will take time for the supply to restore to its level prior to the outbreak of African swine flu. Nonetheless, as the price of animal feed continues to reduce, the price of meat may fall as well, although it is unlikely that the price will fall below the cost.