The share price of Thaifoods Group Public Company Limited (SET: TFG) and GFPT Public Company Limited (SET: GFPT) plunged sharply yesterday amid several speculations on upcoming events including the Nine Emperor Gods Festival and the entrance of Betagro.
Finansia Syrus Securities (FSS) stated that although the share price of TFG and GFPT plummeted by 7.4% and 3.6%, the firm said that it had not seen any bearish news that would affect the price. Meat prices, such as pig and chicken, remained high, and FSS had not heard about price ceiling news.
The firm noted that if any, there were only negative sentiments, including the Nine Emperor Gods Festival known as Vegetarian Festival in late September, coupled with heavy rain. Also, since Betagro (BTG) is about to trade on the Thai stock market, there may be short-term portfolio adjustments. As a result, FSS viewed that the weakness provides an opportunity for speculation and maintained its target price for TFG at Bt8.5 and GFPT at Bt17.5 per share.
In addition to FSS’ report on Betagro, Reuters reported that the company has reportedly started its pre-marketing of a US$500–$600 million domestic IPO for a targeted launch later this month, citing people with knowledge of the transaction.
Betagro is Thai animal feed, animal health and farm equipment maker. The company plans to sell 500 million new shares or equivalent to 25% of the capital.